5 February 2013

Tanzania: State to Set Up Youths Bank, Injects Sh15 Billion

Dodoma — THE government is to inject Sh15 billion as startup capital to establish a youth development bank by June this year, the National Assembly was told on Monday.

Winding up debate on a private motion by Dr Hamis Kigwangalla (Nzega-CCM), the Minister for Information, Youths, Culture and Sports Dr Fenella Mukangara said plans are at advanced stage to establish the bank. Dr Kingwalla tabled a private motion last week proposing formation of a fund and a bank to assist youths in the country, secure loans and engage in agricultural and agroprocessing activities as a way of creating jobs.

The minister told the House that they have already contacted several stakeholders on the matter and they have already decided where the headquarters of the bank would be. During the same session, the Minister for Labour and Employment, Mrs Gaudentia Kabaka, hinted employment rate in the public sector is on an upward trend, noting that at the moment unemployment stands at 11.7 per cent.

"Someone suggested that the current unemployment rate is 30 per cent. That is not true, statistics show that it is at between 11.7 and 12 per cent following a research conducted in 2006. The next research will be conducted in 2014," she said. She also concurred with Dr Kigwangwalla's motion, saying that forming a youth development fund is inevitable.

The government is currently waiting to sign an agreement with Qatar to have more people work in that country. However, she was not specific about the kind of jobs that Tanzanians do outside the country. Mrs Kabaka challenged youths in the country to be aggressive and seek opportunities in the job market instead of waiting for the government to hand them jobs.

"The unemployment rate in Kenya for example is at 41 per cent I have been told, that is perhaps why their young people are aggressive," she said. The Minister of State (PMO-Investment and Empowerment), Mrs Mary Nagu added her voice to the motion by saying that over 1bn/- has been disbursed through a youth fund to assist young people to employ themselves.

The motion was later endorsed by parliament after the State agreed to various changes to its motion it tabled in the House in response to Dr Kigwangalla's motion

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