Tanzania's administration has unveiled a comprehensive plan to combat unemployment and foster economic growth. According to Dr. Joyce Ndalichako, the minister of state in the Prime Minister's Office, the third Five-Year Development Plan aims to reduce the unemployment rate from 9% in 2019 to 8% by 2025/26.
To achieve this goal, the government recognizes the importance of developing skills among the country's youth. Dr. Joyce Ndalichako emphasized that collaboration with employers, facilitated through their association, ATE, is essential to address the lack of skills in young people and create more on-the-job training opportunities.
One of the key initiatives to help young people enhance their abilities is the expansion of apprenticeship training. The government aims to increase the number of graduates with apprenticeship training from 46,000 in 2019/20 to 231,000 by 2025/26 under the third Five-Year Development Plan. Furthermore, the objective is to increase the number of graduates in training from 30,000 in 2019-20 to 150,000 by 2025-2026.
ATE, the association representing employers, plays a pivotal role in driving economic growth. Oscar Mgaya, the chairman of ATE's board, outlined a three-year business strategy (2023–25) that encourages companies to contribute to a competitive and sustainable economy. This includes supporting workers in acquiring the necessary skills for the domestic and international job markets.
Additionally, ATE aims to improve labor and employment regulations and systems to boost workplace productivity and foster private-sector participation in the country's economic development. The association is actively engaged in issues such as promoting gender equality, combatting climate change through green initiatives, enhancing workplace health and safety, and facilitating employment opportunities for people with disabilities.
The government's commitment to gradually lower the Skill Development Levy (SDL) from 3.5% to 4% through the Financial Law of 2023 is commendable. This move will reduce the cost of doing business for companies in Tanzania, encouraging further investment and growth in the nation.
Overall, the reforms to legislation, rules, and processes aimed at improving the business and investment climate in Tanzania have been well-received and have fostered positive collaboration between ATE and various ministries, including the Ministry of Education, to promote skill development projects in the country.