New investment pacts a boon for young citizens

Speaking at the event, Minister of State in the President’s Office for Planning and Investment, Prof Kitila Mkumbo, said the government’s priority is not the source of investment but the outcomes it produces, particularly in terms of jobs for young people.

“With the current investment agreements, we focus on what we call performance milestones. We set clear targets and then measure results,” Prof Mkumbo said.

He added that the government is committed to ensuring young people are prioritised in all new investment projects and has introduced incentives to support domestic investors, including free land allocation and favourable terms, to spur entrepreneurship and job creation.

Under the framework, performance milestones serve as contractual checkpoints, outlining measurable targets such as construction timelines, employment quotas, operational benchmarks and local content requirements.

The aim is to ensure that investment commitments translate into tangible benefits, especially for youth.

Legal experts say the provisions are crucial for protecting public interest and enforcing accountability.

Dar es Salaam-based corporate lawyer Mr Henry Sylivester said the milestones compel investors to employ Tanzanian youth, complete projects on schedule and integrate local supply chains.

“This ensures that young people genuinely benefit from investment projects rather than promises remaining on paper. By linking incentives directly to job creation and local participation, investors are motivated to deliver on their commitments,” he said.

Another legal consultant, Mr Paschal Livinus, said enforceable milestones strengthen investor responsibility and promote professional standards centred on planning, performance and accountability.

“If investors fail to meet their obligations, legal remedies are available. Young Tanzanians gain experience in environments that value efficiency, compliance and productivity, which improves their employability and raises industry standards,” he said.

Economists say the impact of the approach is likely to become more pronounced in 2026, following Tanzania’s strong investment performance in recent years.

According to Prof Mkumbo, Tanzania ranked ninth among African countries with the most favourable investment climate for 2025/2026, citing a Business Insider Africa report. In 2025, a total of 915 projects were registered through TISEZA, up from 901 in 2024 and 252 in 2021.

The projects span sectors including manufacturing, energy, tourism, agriculture and technology, and are expected to create more than 161,678 jobs, a significant share of them for young people.

Prof Mkumbo attributed the growth to improved business conditions, upgraded infrastructure, predictable policies and political stability.

“Our reforms have created an environment in which serious investors can operate with confidence, while young Tanzanians gain access to meaningful employment opportunities,” he said.

Economists argue that linking incentives to performance could reshape the youth employment landscape by promoting skills development, entrepreneurship and inclusive growth.

An economist at Saint Augustine University of Tanzania, Dr Isac Safari, said performance-linked agreements go beyond regulation.

“They are tools for social and economic transformation. They not only create jobs but also expose young people to training, technology transfer and career progression,” she said.

Another economist, Mr Samson Rutashobya of the University of Iringa, said the framework offers stability for both investors and young workers.

“Clear performance milestones give investors certainty, while young people can see defined career pathways. This alignment encourages youth to consider entrepreneurship as they gain experience in growing sectors,” he said.

Meanwhile, University of Dar es Salaam economist and investment consultant Ms Monica Sanga said embedding accountability in investment agreements ensures projects stimulate local businesses and support small and medium-sized enterprises.

“Young people are not only employees. With strong value chains, they can also become entrepreneurs, contributing to a more resilient and inclusive economy,” she said.