GIZ, KCB fund to transform youths’ economies

Youth forms a crucial and huge portion for the country’s population. According to the 2022 census results youth accounts to 34.5 percent of the total population, a slight decrease from 34.7 in 2012.

Also, looking at the labour force, Tanzania has reported an increase in the working force (aged 15-64) whereby 52.7 percent are male and 54.2 are female. The increase was 1.6 percent and 0.9 percent respectively.

It is undeniable that, empowering youth becomes a corner stone towards achieving national development plans.

According to the report by the National Bureau of Statistics (NBS), integrated Labour Force Survey 2020/21 shows that there is decline in employment to population ratio in Tanzania from 77.4 percent in 2014 to 75.4 percent in 2020/21. The decline is attributed to expanding enrolment in education for working age population compared to previous years.

The report among other things was looking at the ability of an economy to absorb labor in different sectors.

Different studies have shown that skills gap is the most pressing constrain for the unemployment among youth. To address that, increasing enrollment to vocational training is pointed out as one of the measures to tackle unemployment challenges in the country.

To address this, KCB Bank Tanzania through KCB Foundation has taken a step further by coming up with several initiatives that addresses the problem of unemployment through skills and enterprise development.

This is being implemented under the flagship of KCB 2jiajiri programme established in 2016.

Recently, the program has witnessed a very important milestone after launching the new partnership between KCB Foundation and the German Development Cooperation (GIZ) to increase the employability and income generation of 966 Tanzanian youth in the construction sector.

This partnership was launched by the Prime Minister of the United Republic of Tanzania, Kassim Majaliwa Majaliwa who agrees that the country needs sufficient labour force to work in different economic sectors including agriculture, mining, fishing, construction and others. 

Furthermore, he commends the move by the two parts, arguing that it will help the country achieve national development plans, including Vision 2025, which seeks to build a competitive and industrial economy for human development.

“Youth empowerment is key in ensuring national economic growth; this is because youth form a huge source of manpower that can work in different sectors.

“This initiative is a sign of your willingness to improve youth employability through skills development that will help them to be employed and develop enterprises. I commend this partnership between KCB Bank Tanzania and GIZ for supporting 960 youth and the government is fully supporting this noble cause,” he noted.

The project is implemented in five regions which are Dar es Salaam, Mwanza, Morogoro, Arusha, Kilimanjaro (Moshi). Also, it was covered Zanzibar-Unguja.

According to TNBS (TanzaniaNational Bureau of Statistics), in 2019, the construction industry contributed 11.2 percent to GDP, second to Information & Communication Technology.

The sector plays a significant role in the country’s economy growth. The growth of this sector attracts the need of skilled workforce to support the existing market demand.

The EUR 846,000 equivalent to 2.2bn/- (rate of 2021) partnership from October 2021 until October 2023 will provide youth with technical and vocational skills training.The funds will also support the provision of construction toolkits to youth, to enable them to start up business enterprises in the construction sector.

The trainings are provided under the Vocational Education and Training Authority (VETA) in mainland and Vocational Training Authority in Zanzibar (VTA). 

The trainings cover 6 months period whereby 3 months involves in-class training and 3 months in field to ensure students receives both theory and hands-on skills. 

The beneficiaries are trained on welding, domestic plumbing, electrical installation, aluminium, painting, and sign writing. All these courses have experienced an increased market demand thus offering employment potentials to youth.

Over the years, KCB Bank Tanzania, through KCB Foundation, has been implementing several initiatives dedicated to empower communities inspired by the Sustainable Development Goals (SDGs), youth being one of the areas of focus.

“KCB Bank, through our Foundation, is pleased to join hands with GIZ to make a lasting and meaningful contribution to the economic development of Tanzania through the youth in theconstruction sector. This is because we are cognizant of the role of the youth in the transformation of an economy and how important the construction sector is in driving the growth of Tanzania through its multiplier effects on other industries,” says the KCB Group CEO, Paul Russo.

On his side, the Country Director for GIZ, Dr. Mike Falke, says, “We are very happy with the quality and results of this cooperation, which is aligned to the priorities of the government in addressing the skill gap and promoting employment, including the National Skills Development Strategy and the Five-Year Development Plan 2021/22-2025/26,” he said.

The KCB Bank Tanzania Board Chairman, John Ulanga, says the program is in line with the bank’s strategy to drive sustainability in the country by providing solutions to problems facing Tanzanians and ensuring they deliver a long-lasting impact.

“We are confident that this partnership is for the greater good of youths in Tanzania and will create a long-lasting impact through increased employment, innovation, and entrepreneurship growth, thus creating a sustainable future,” said John Ulanga. 

The Acting Group Regional Businesses Director and Managing Director of KCB Bank Tanzania, Cosmas Kimario, said the bank is planning to enroll more youth this year to widen the opportunity for many Tanzanians.

“We are happy to announce that this year the KCB Foundation will enroll another 5,000 youths in Tanzania, and this is the largest enrollment we have ever done. We believe that this initiative will create more opportunities and ultimately ensure a greater impact for many Tanzanians,” he said.