The World Bank’s Board of Executive Directors has approved a development policy credit of US$80 million towards improving Tanzania’s private sector performance in order to fast track job creation in the country, Footprint to Africa reports.
Footprint to Africa learnt that 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 labor-intensive sectors such as agriculture and manufacturing expanded below the average rate of the economy, especially about 7 percent in 2014/2015. As a result, job creation did not speed up to keep pace with the growth of the working population.
“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,” World Bank’s Country Director, Bella Bird said.
Footprint to Africa discovers that every 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. However, opportunities for productive jobs for these youths still remain limited, mostly in the informal sector.