(AfDB) - The Board of Directors of the African Development Bank Group on 20 September 2024 approved a $129.71 million loan to Tanzania for the implementation of a youth-focused agribusiness program.

The loan will fund the first phase of the “Building a Better Tomorrow: Youth Initiatives for Agribusiness” program, which aims to create business opportunities and jobs for young people in key agricultural sectors.

The total cost of the project is estimated at $241.27 million. In addition to the Bank's loan, which covers 53,76 percent of the cost, the funding package includes grants of $1.15 million from the Korea-Africa Economic Cooperation (KOAFEC) Trust Fund and $210,000 from tropical vegetable seed firm East-West Seed. The Tanzanian government will provide $110.41 million, representing 45.76 percent of the total.

Patricia Laverley, the Bank's Country Manager for Tanzania, said: “This project is expected to incubate and empower approximately 11,000 ‘agripreneurs,’ including at least 6,000 young agribusiness owners.” She added that the program will facilitate access to finance for an additional 2,500 young people already involved in agribusiness but lacking access to commercial loans. We expect each agribusiness run by a young person will employ an average of five workers.”

The project will implement strategies to raise awareness and manage knowledge using youth-oriented information and communication technologies. It will also provide training and support for agrifood business incubation and acceleration, with a particular focus on the recruitment of female applicants.

Digital technologies, including satellite technology and artificial intelligence, will be utilized to improve agricultural productivity and decision-making processes for young farmer cooperatives.

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