Dar es Salaam. Tanzania's ambition of becoming a $1 trillion economy by 2050 will largely depend on its ability to empower young people through access to finance, financial literacy and co-operative-based economic models, the Minister responsible for Youth Development, Mr Joel Nnauka, has said.
Speaking during the launch of Coop Bank Tanzania's Morocco branch in Dar es Salaam on Friday, Mr Nnauka said greater investment in youth was essential to unlocking the country's economic potential and achieving the targets set out in Vision 2050.
He said a newly signed partnership between the ministry and Coop Bank Tanzania would help address long-standing barriers facing young entrepreneurs, particularly limited access to affordable financing and financial education.
“My expectation is that this programme will enable many young people to access reliable capital and expand their businesses, pursue educational opportunities and create wealth,” he said.
According to .r Nnauka, the government has identified young people as a key driver of Tanzania's long-term economic transformation.
“Youth have been identified as a critical resource in ensuring that we achieve our goal of becoming a $1 trillion economy by 2050,” he said.
He noted that young people aged between 15 and 35 account for 34.5 percent of the country's population, while about 14 million form part of the national workforce.
“This is a large segment of the population that requires targeted strategies if we are to reach it effectively,” he said.
Despite their importance to the economy, many young Tanzanians continue to face challenges accessing formal financial services and affordable credit.
Mr Nnauka said the partnership with Coop Bank would help bridge the gap by providing youth-focused financial products while encouraging young people to organise themselves through co-operatives and savings and credit co-operative societies (Saccos).
“In this environment, we see Coop Bank as a bridge that can help formalise young people and provide them with essential financial services through the co-operative model,” he said.
He urged young people to take advantage of the opportunities offered through the partnership, describing them as affordable and secure.
The minister said digital financial services would also play a critical role in reaching younger generations, noting that financial institutions must adapt to changing technologies and consumer preferences.
“We believe that when young people are provided with capital, knowledge and an enabling environment, they can establish businesses, create jobs and contribute significantly to national economic growth,” he said.
Mr Nnauka expressed concern over the large number of young people operating outside the formal economy, saying this limits their access to financial support and economic opportunities.
“If you look at economic statistics, more than 90 percent of youth economic activities take place outside the formal system. This limits their ability to access opportunities and support,” he said.
He cited recent financial inclusion data showing that 51 percent of Tanzanians aged between 16 and 24 remain outside formal financial structures, while 77 percent of rural residents are still excluded from the formal financial system.
“That means half of Tanzania's youth cannot currently be reached through formal empowerment programmes,” he said.
The minister said changing perceptions about co-operatives would be crucial in increasing youth participation in the formal economy.
“One of our biggest tasks is to change the image of co-operatives so that young people see them as a viable economic model rather than something associated only with older people or farmers,” he said.
He noted that co-operatives have played a significant role in economic development in countries such as India, Canada and Bangladesh and could similarly help drive Tanzania's economic transformation.
“We need to reposition this model as a pathway for people who want to build economic strength and independence,” he said.
Mr Nnauka also stressed the importance of financial literacy, warning that several youth financing programmes have struggled due to weak financial management skills among beneficiaries.
He revealed that billions of shillings disbursed through youth empowerment funds remain unpaid, including about Sh6 billion owed in Ubungo Municipality alone.
“One of the biggest challenges is a lack of financial management knowledge. Money will never stay with you beyond your understanding of how to manage it,” he said.
He urged young people to join formal economic structures, including co-operatives, Saccos and registered businesses, saying these platforms would improve access to markets, financing and business opportunities.
“Joining formal economic systems helps young people build a financial track record, access markets, strengthen their enterprises and qualify for loans,” he said.
Mr Nnauka later officially inaugurated the Morocco branch, describing it as another milestone in expanding financial services and creating economic opportunities for Tanzanians.
