The African Development Bank (AfDB) has approved a $129.71 million loan to Tanzania aimed at empowering and creating new jobs for young agripreneurs through modern technology and financial support.
The loan was approved by the Board of Directors of the African Development Bank. It is part of the first phase of the “Building a Better Tomorrow: Youth Initiatives for Agribusiness” program which seeks to implement youth-focused agribusinesses program.
Also, the initiative will facilitate access to finance for approximately 2,500 young people already active in the agricultural sector but lacking commercial loans. Each youth-led business is anticipated to create an average of five jobs.
The total project cost is estimated at $241.27 million, with the AfDB covering 53.76% of the expenses through its loan. Additional contributions include $1.15 million from the Korea-Africa Economic Cooperation (KOAFEC) Trust Fund and $210,000 from East-West Seed, a tropical vegetable seed company. The Tanzanian government will cover the remaining 45.76%, amounting to $110.41 million.
Patricia Laverley, AfDB’s Country Manager for Tanzania, shared that the program is expected to support around 11,000 young agripreneurs, including 6,000 new agribusiness owners.
The project will leverage youth-focused communication technologies to raise awareness and provide knowledge-sharing platforms. It will also offer training and support for agrifood business incubation, particularly focusing on attracting female participants.
Additionally, digital tools like artificial intelligence and satellite technology will be employed to enhance agricultural productivity and decision-making for young farmers and cooperatives.
As of June 30, 2024, the African Development Bank has approved 25 projects in Tanzania, with a total funding commitment of $3.48 billion.
