Tanzania's government has called on banks, local authorities and private companies to increase financing for young agribusiness entrepreneurs, arguing that investment in the sector can generate jobs, raise incomes and drive economic growth. The appeal came as 40 young entrepreneurs from Dodoma and Singida received grants totalling 40 million shillings under the second phase of the Generation Food Accelerator, run through the Vijana Kilimo Biashara project. Eng Athumani Kilundumya, Deputy Permanent Secretary in the Ministry of Agriculture responsible for Irrigation and Agricultural Mechanisation, said young people need access to capital, skills, technology, business advice and markets to convert agricultural opportunities into working enterprises.
Agriculture accounts for roughly 26.4 per cent of Tanzania's GDP and provides employment for more than 65.5 per cent of Tanzanians, making young entrepreneurs vital to the sector's future, Eng Kilundumya noted. He stressed that agribusiness opportunities extend well beyond crop production, encompassing seed production, mechanisation services, farm input supply, produce collection, storage, processing and marketing. Banks and other financial institutions should enhance financial literacy programmes and make loans more accessible to young people with credible business plans, he urged. He also warned local government leaders and community development officers against using bureaucratic procedures that could deter young applicants from accessing loans earmarked for women and youth.
The second phase of the Generation Food Accelerator received 731 applications and selected 100 entrepreneurs, with 60 from Dodoma and 40 from Singida. Women made up 53 per cent of the 100 participants selected, and 38 businesses have formalised their operations through registration, licensing and tax compliance. The programme has generated 43 jobs so far. The World Food Programme, which is the main partner implementing the project alongside Rikolto, said the initiative has supported young entrepreneurs through mentorship, advisory services and connections with strategic partners. The scheme targets young people aged 18 to 35 working in sorghum, sunflower, vegetable and fruit value chains and is funded by the Mastercard Foundation.
For young Tanzanian savers and borrowers, this push means banks may face pressure to offer more accessible lending products for agricultural entrepreneurs, potentially widening credit availability but also requiring stronger personal financial management.