BANGKOK: TANZANIA has earmarked 14.6 billion US dollars (about 38.6tri/-) for education and skills development under its Fourth Five-Year Development Plan (FYDP IV), in a move aimed at preparing the workforce for changing labour market demands and supporting economic transformation.
The Permanent Secretary in the Ministry of Finance and Paymaster General, Dr Natu El-Maamry Mwamba, announced this yesterday during the Human Capital Ministerial Conclave in Bangkok, Thailand, held on the sidelines of the annual meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG).
The meeting discussed how artificial intelligence (AI) and other technologies are changing labour market skills requirements, as well as the need to strengthen education and training systems to meet the evolving demands of employers and the economy.
Dr Mwamba said the allocation accounts for eight per cent of the 183 billion US dollars (483.6tri/-) set aside for implementing FYDP IV.
She said the initiatives form part of the country’s efforts to strengthen education and skills development under the plan, which aligns with Development Vision 2050.
“The plan envisages the private sector financing 70 per cent of total planned investment, with the public sector contributing the remaining 30 per cent,” she said.
Dr Mwamba added that the Long-Term Perspective Plan (LTPP) sets specific targets for private-sector investment in skills development, including training two million people in advanced industrial production technologies, information and communication technology (ICT) and clean energy through public-private partnerships (PPPs) by 2040.
Other targets include establishing at least 50 partnership programmes by 2030, setting up 200 business incubation centres for young people and supporting 5,000 small and medium-sized enterprises (SMEs).
Tanzania expands BBT programme with $13m boost for youth and fishers
Participants also discussed policy measures to encourage private-sector investment in skills development, including PPPs, digital technologies and innovative financing mechanisms to expand access to quality training programmes for students and workers.
The meeting further explored incentives to encourage investment in training, including tax incentives linked to training outcomes that could involve tax deductions of up to 30 per cent.
Other proposals included partnerships to develop training infrastructure and provide equipment, as well as blended financing models tied to measurable results.
Meanwhile, Minister for Finance, Amb Khamis Mussa Omar, led a Tanzanian delegation in discussions with International Finance Corporation (IFC) Vice-President Mr Ethiopis Tafara in Bangkok on strategies to accelerate private-sector development and expand employment opportunities, particularly for young people.
The discussions focused on implementing Development Vision 2050, which aims to transform Tanzania’s economy from its current value of about 100 billion US dollars to 1 trillion US dollars over the next 25 years.
Amb Omar said achieving the target requires greater private-sector participation, particularly in manufacturing, infrastructure and agribusiness, which are expected to drive economic growth and create sustainable employment opportunities for young people.
Mr Tafara said the IFC will continue working with Tanzania to support the Vision 2050 goals by enabling private-sector investment in agricultural technology (AgTech), healthcare, tourism and financial inclusion.
“The IFC is ready to contribute to the government’s plans to develop the Central Corridor into a driver of economic activity through the transportation of goods and passengers and by stimulating other economic activities along the corridor,” he said.
The discussions also addressed the financing gap facing SMEs, with the IFC planning to work with financial technology (fintech) companies and non-bank lenders to provide loans based on behavioural data rather than conventional collateral.