Speaking at the fourth session of the ‘Ibuka youth campaign’ organized by Financial Sector Deepening Trust (FSDT) held at University of Dar es Salaam over the weekend, Deputy Minister of Finance and Economic Planning, Dr Ashatu Kijaji said youths and women are active in seizing economic opportunities but lack of skills is affecting them negatively.
“The majority of youths and women who borrow from district councils through the allocated 10 per cent of revenue collected fail to pay back their loans,” Dr Kijaji said.
She said financial institutions have not done much in reaching out to the two groups with financial management training hence their vulnerability. She called upon the institutions to initiate a campaign in schools, colleges and universities where many entrepreneurs are groomed.
“Neither the government nor the private sector can employ all young graduates the majority of which join entrepreneurship. This is why it is essential for financial institutions like banks to offer financial management training to help them develop and sustain businesses they start,” she added.
Bank of Tanzania Deputy Governor for Financial Stability and Deepening, Dr Bernard Kibesse said that technology advancements are helping youth in engaging in financial matters in discussions but business skills and innovation are essential in making sure that the group is not left behind in economic activities.
“The majority of youth have problems with saving part of their earnings, even those with small businesses don’t understand how to expand their businesses through separation of business expenditure and their personal expenditure,” Dr Kibesse said.
“The problem of financial management among youth can be solved if they become disciplined in handling their money and know what they want in life and how to achieve it,” he added.
Briefing Dr Kijaji, Executive Director FSDT, Sothenes Kewe said that the campaign is a unique youth awareness exercise designed to unearth concerns of young people on their access to and usage of financial services.
“The goal of this campaign is to initiate communication approaches that will steer dialogue towards addressing existing gaps in access and usage of appropriate financial services. The campaign has been to universities in Dodoma, Mwanza, Morogoro and Dar es Salaam and has more than 3,000 through dialogues. We will be in Zanzibar before the end of the year,” Kewe said.
Acording to FinScope Tanzania 2017 Survey, youth aged 16 to 24 years are about a quarter of the adult population, the majority of whom are still dependent on others to pay their expenses, to be provided with money (37 percent) or involved in casual labor (21 percent) which does not offer them a consistent source of income.