Dar es Salaam. The government is consulting with the African Development Bank (AfDB) and other financial institutions on the possibility of establishing a Small and Medium Enterprises (SMEs) bank.
The bank would be charged with the role of addressing challenges facing the youth, especially lack of capital for starting up their businesses.
The revelation was made on Friday by President Samia Suluhu Hassan during the solidarity walks for the Revolution of Zanzibar organized by CCM youth wing (UVCCM).
The march gathered 700 participants who marched a total of 124.9 kilometres.
Addressing the public during the event, President Hassan said unemployment was a global challenge facing the youth as most manufacturing firms retrenched their employees due to the impacts of Covid-19.
“Both the (Union and Zanzibar) governments are aware of the unemployment problem and lack of capital. This is why we have established several financial empowerment schemes including the 10 percent issued by Local Government Authorities (LGAs),” she said during a live broadcast event.
However, she said increasing demand from the youth has made the said provided resources inadequate.
“We have commenced discussions with different institutions including the AfDB on how they can help in setting up the SMEs’ bank that will provide room for the youth to secure loans and raise capital for their businesses,” she says.
She said her government would increase the number of Vocational and Education Training Authority (veta) centres in order to provide the youth with more skills to support self-employment.
Ms Hassan challenged the youth who wait for formal employment after graduating from learning institutions to go for self-employment.
“Despite available challenges present in our education system that doesn’t enable the youth to identify available opportunities, increased number of Veta colleges could reduce the challenge,” she said.
“Employment has been raised by 14,000 jobs in the last six months. The government is aware of the problem and create more opportunities for youth,” she said.
She applauded parents and guardians raising their children under good ethics, warning that the youngsters shouldn’t be used for politicians’ personal gains but should themselves vie for elected posts.