By Business Insider Reporter, Dodoma
In a significant boost to youth employment and entrepreneurship in East Africa, the Government of Canada has announced a CA$5 million (approx. TSh9.5 billion) partnership with FINCA Canada aimed at creating sustainable economic opportunities for young people in Tanzania and Uganda.
The five-year initiative, titled “Increasing Economic Opportunities for Youth in Uganda and Tanzania,” was unveiled in Dodoma by Canada’s Secretary of State for International Development, the Randeep Sarai.
It targets over 40,000 youth – particularly marginalised young women – through a blend of vocational training, financial literacy, entrepreneurship mentorship, and access to capital.
“Canada has proudly partnered with FINCA Canada for over eight years,” said Sarai. “Now, we are working together to support marginalised youth in Uganda and Tanzania. With targeted technical and vocational training, young people – especially women – will gain the skills to secure employment, grow their businesses, and participate meaningfully in their economies.”
Youth dividend waiting to be unlocked
Youth under 30 comprise more than 70% of the population in both Uganda and Tanzania, with median ages of 16 and 19 respectively.
Yet, despite their demographic strength, young people in the region face persistently high unemployment rates – 17% in Uganda and 11% in Tanzania – far exceeding national averages.
For young women, the unemployment gap is even wider, with rates 50% higher than for young men.
“This initiative recognises the urgency and potential of Africa’s youth bulge,” said Drew Boshell, Executive Director of FINCA Canada. “Young entrepreneurs in Africa have the ideas and determination to thrive. Through this partnership, we aim to help them break the cycle of poverty by giving them the financial tools and mentorship to build sustainable livelihoods.”
Boosting Tanzania’s SME ecosystem
In Tanzania, where youth entrepreneurship is seen as a vital driver of inclusive growth, the project’s focus on business incubation, financial inclusion and job readiness aligns well with national priorities.
The programme will work closely with Tanzanian businesses, vocational training institutes and community organisations to deliver market-driven training that meets current labour demands.
By enhancing employability and supporting entrepreneurship, the programme is expected to create over 20,000 new jobs in Tanzania and Uganda combined – most of them within small and medium enterprises (SMEs), which are the backbone of East Africa’s informal economy.
Long-term impact
The initiative is part of Canada’s broader commitment to advancing gender equality and economic inclusion globally.
It will be implemented through FINCA Canada’s Business Partnership Program, which leverages local expertise and community engagement to deliver impactful results. “This is not just about jobs – it’s about dignity, confidence, and sustainable futures for thousands of young people,” said Canada’s High Commissioner to Tanzania, Emily Burns, who also attended the launch in Dodoma.
