Tanzania Secures $130Million AfDB Loan to Power Samia Infrastructure Project

Woman Farming
The project is expected to empower approximately 11,000 ‘agripreneurs.’ Shutterstock

The African Development Bank (AfDB) has approved a $129.71 million loan to support one of President Samia Suluhu’s flagship projects, aimed at encouraging Tanzanian youth to engage in the agricultural sector. This initiative, known as the “Building a Better Tomorrow: Youth Initiatives for Agribusiness” (BBT-YIA), seeks to empower young Tanzanians and promote agribusiness as a viable career path.

Funding Breakdown and Project Scope

The AfDB loan will cover 53.8% of the total project cost, funding the first phase of this ambitious initiative. The BBT-YIA project, launched by President Suluhu in March 2023, was introduced in the lead-up to the Africa Food Systems Forum, held in Dar es Salaam last September. The project is designed to boost agricultural productivity while providing youth with training, mentorship, and access to land.

Along with the AfDB loan, two additional grants have been secured to further support the project:

  • $1.15 million from the Korea-Africa Economic Cooperation (Koafec)
  • $210,000 from East-West Seed, a Thailand-based tropical vegetable seed company.

The Tanzanian government will also contribute $110.41 million, covering 45.8% of the total $241.3 million required for the project.

Empowering Agripreneurs and Boosting Employment

The BBT-YIA project is expected to have a significant impact on youth involvement in agribusiness. According to AfDB’s country manager for Tanzania, Patricia Laverley, the program aims to incubate and empower 11,000 agripreneurs, including at least 6,000 young agribusiness owners. Additionally, it will help 2,500 young people access financing to expand their existing agribusinesses.

Laverley also highlighted the long-term goals of the project: over the next 12 years, the initiative is projected to establish 12,000 profitable youth-led agricultural enterprises. The plan includes training over 200,000 young people, offering internships to 20,000 youth, and mentoring 15,000 youth-led agribusinesses through incubation programs.

Land Access and Tanzania’s Agenda 2030 Vision

One of the key elements of this initiative is to provide youth and women with access to land. President Suluhu revealed that the government will allocate 680,000 hectares of land, with each young farmer receiving 10 hectares. This is part of a broader strategy to attract more youth into agriculture and contribute to Tanzania’s Agenda 2030 policy, which aims to increase agriculture’s contribution to 10% of GDP by 2030.

Building a Sustainable Future for Tanzania’s Agriculture

President Suluhu highlighted the importance of the youth in achieving Tanzania’s agricultural goals during her speech at the Feed Africa Summit in Dakar last year. “Who will help us achieve that? The youth,” she said. The BBT-YIA initiative is a core part of the government’s plan to create a sustainable agricultural future for Tanzania, leveraging youth and women as key drivers of growth.

With the combined support from AfDB, international grants, and the Tanzanian government, the BBT-YIA project is set to transform Tanzania’s agricultural landscape, empowering young people and creating a new generation of agripreneurs.

Source: East African

WP Twitter Auto Publish Powered By : XYZScripts.com