“Thousands of young people enter the workforce every year and are filled with energy and high expectations.
“Creating productive jobs is a priority for Tanzania and only the private sector can generate the number of jobs required. The policy reforms supported by this operation help to remove obstacles for doing business in the country, unleashing the private sector and employment growth,” Bella Bird, the World Bank’s Country Director said last week.
The bank’s Board of Executive Directors approved the $80 million credit for the Business Environment for Jobs Development Policy Operation (DPO) as the first in a programmatic series of three budget support operations for Tanzania.
The Japanese government, through JICA their development agency, will also provide some assistance under the project.
According to the bank, over the past decade, private sector investment has been concentrated in a few fast growing sectors, such as the extractives, finance, communication, and transport while labour-intensive sectors such as agriculture and manufacturing expanded below the average rate of the economy (about 7 percent in 2014/15).
As a result, job creation did not accelerate to keep pace with the growth of the working population.
Each year, about 800,000 young people enter Tanzania’s labour force, which is expected to increase from 20 million as of today to 40 million in 2030. Read more. Source | East African Business Week