AfDB Group approves US$129.71M loan to Tanzania for youth agribusiness program

TANZANIA – The African Development Bank Group (AfDB) has approved a loan of US$129.71 million to Tanzania, intended to support the first phase of the “Building a Better Future: Youth in Agribusiness” program. 

The decision was made on September 20, 2024, during a board meeting in Abidjan.

The loan will cover 53.76% of the total project cost, which is estimated at US$241.27 million. 

Alongside the loan, the bank is also providing a grant of $1.15 million from the Korea-Africa Economic Cooperation (KOAFEC) Trust Fund and an additional US$210,000 from East-West Seed. 

Tanzania’s government will contribute $110.41 million in counterpart funding, which represents 45.76% of the total budget.

The project aims to create job opportunities and promote entrepreneurship among youth in key agricultural value chains. 

According to Patricia Laverley, the Bank’s Country Manager in Tanzania, the initiative is expected to help incubate and empower about 11,000 agripreneurs, including at least 6,000 youth agribusiness owners. 

The program will also facilitate access to financing for another 2,500 youth who are already involved in agribusiness but face difficulties in obtaining commercial loans to grow their enterprises. Each youth-led business is projected to employ around five workers.

A significant component of the project is the implementation of a communication strategy that will utilize social media and other youth-friendly platforms to raise awareness of opportunities in modern and climate-resilient agriculture. 

Special efforts will be made to engage women in the program. 

The project will be rolled out in the Dodoma and Mbeya regions, where groundwork such as land acquisition, environmental and social safeguards, and soil analyses have already been initiated.

The initiative will focus on two groups of youth: unemployed graduates who have completed post-secondary education and require business incubation, and those already working in agribusiness but needing better access to financing. 

The program will also provide training and coaching to young farmers’ cooperatives, with the goal of improving agricultural productivity, optimizing the use of inputs, and increasing market access. 

Cutting-edge digital technologies, including satellite imagery and artificial intelligence, will help these cooperatives monitor factors such as irrigation, plant health, soil quality, and weather conditions in real-time, improving decision-making.

As of June 30, 2024, the African Development Bank had completed 25 projects in Tanzania, with a total financial commitment of US$3.48 billion.

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