Tanzania’s Prime Minister, Mwigulu Nchemba said the government is working on a special strategy that would enable young people to use their education certificates as security when applying for loans.
He made the remarks on April 9, 2026, in Parliament in Dodoma while responding to a question from Hon. Timida Mpoki, a Special Seats Member of Parliament representing youth, who asked about government plans to economically empower young people.
Nchemba said the proposal is aimed at helping youth access capital to start businesses and grow their economic activities.
“I understand the struggles young people face. After I graduated from university, I worked carrying concrete and making bricks, while my wife worked as a food vendor,” he said, highlighting the challenges of unemployment.
He added that while some students currently access loans during their studies, many struggle to secure financing after graduation due to a lack of collateral.
The Prime Minister said the government is now exploring ways to allow graduates to use their certificates as collateral, depending on their field of study.
“For example, a pharmacy graduate could use their certificate to secure a loan and open a pharmacy, while an engineering graduate could use theirs to access funding for equipment,” he said.
He noted that the plan is being developed following directives from the president to find solutions to youth unemployment.
The proposal is expected to be presented in Parliament after the government completes legal frameworks to establish a system that will support loan guarantees and recognize movable assets as collateral.
