Analyzing Government Policies for a Thriving Digital Economy

TICGL’s Economic Research Centre has published a new study authored by Amran Bhuzohera, Dr. Bravious Felix Kahyoza PhD, FMVA, CP3P (braviouskahyoza5@gmail.com), and Dr. Jasinta Msamula Kahyoza PhD, FMVA, CP3P (jmsamula@mzumbe.ac.tz), which investigates the intersection between Artificial Intelligence (AI), youth employment, and government policy frameworks within Tanzania’s evolving digital economy.

The study provides critical insights into how AI-driven transformation can be aligned with national employment strategies and policy reforms to harness the potential of Tanzania’s young workforce. With their combined expertise in economic modeling, innovation policy, and strategic development, the authors contribute to shaping a forward-looking dialogue on technology, inclusion, and sustainable economic growth.

Tanzania’s youth population—over 60% under the age of 25—represents both a demographic dividend and a pressing employment challenge. While official youth unemployment stood at 3.35% in 2024, underemployment and informality remain widespread. The research highlights that the rise of AI, if managed inclusively, could transform this landscape by creating millions of digital jobs and expanding opportunities for self-employment, freelancing, and innovation-driven entrepreneurship.

Key Insights

• AI as a job creator, not just a disruptor: Globally, AI may replace 85 million jobs but create 97 million new ones by 2025, largely in data science, creative design, and tech services. Tanzania’s youth could benefit through AI-driven platforms, digital freelancing, and agritech innovations.
• Digital economy transformation: The Tanzania Digital Economy Strategic Framework (2024–2034) and Youth Development Policy (2024) are pivotal in promoting youth digital skills, while the AI Readiness Assessment Report (2025) recognizes AI’s potential in sectors like agriculture, healthcare, and education.
• Regional and global opportunities: Africa’s digital economy could create 230 million digital jobs by 2030, with Tanzania expected to generate 5 million digital employment opportunities through AI-enabled services and start-ups.
• Private sector collaboration: Programs like the Digital Opportunity Trust (DOT) and PPP-based innovation hubs demonstrate the private sector’s role in providing digital literacy and start-up incubation for youth employment.
• Policy gap: Only 45% of Tanzanian youth have internet access, highlighting a critical need for digital inclusion policies to ensure equitable participation in the AI economy.

Policy Recommendations

To maximize AI’s potential for inclusive growth, the paper proposes the following measures:

• AI Upskilling Program: Integrate AI and digital literacy into school and vocational curricula, targeting 1 million youth by 2028 through partnerships with global e-learning platforms.
• Incentives for AI Entrepreneurship: Offer tax breaks, innovation grants, and incubation funding for 500,000 youth-led AI start-ups in agritech, fintech, and creative industries.
• PPP-Driven Digital Infrastructure: Strengthen the Digital Tanzania project to deliver affordable connectivity and AI tools, especially in rural areas, enabling 2 million indirect digital jobs.
• Ethical and Inclusive AI Governance: Adopt guidelines from the AI Readiness Report (2025) to ensure transparent, bias-free AI development across sectors.

Conclusion

AI presents a transformative opportunity to redefine youth employment and self-employment in Tanzania’s digital economy. When supported by inclusive policies, public-private partnerships, and nationwide digital literacy, AI could shift the narrative from unemployment to innovation. By 2030, Tanzania stands to achieve a digital dividend through job creation, improved productivity, and sustainable youth empowerment — positioning the country as a regional leader in AI-driven development.

📘 Read the Full Discussion Paper:
“Youth Employment in the Age of AI: Analyzing Government Policies for a Thriving Digital Economy”
Authored by Amran Bhuzohera, Dr. Bravious Felix Kahyoza PhD, FMVA, CP3P, and Dr. Jasinta Msamula Kahyoza PhD, FMVA, CP3P
Published by TICGL | Economic Research Centre
🌐 www.ticgl.com

TICGL’s Economic Research Centre has published a discussion paper authored by Dr. Bravious Felix Kahyoza PhD, FMVA, CP3P (braviouskahyoza5@gmail.com) and Amran Bhuzohera, which explores how digital entrepreneurship and policy reforms can transform Tanzania’s Generation Z (Gen Z) into a driving force for inclusive economic growth.

The paper highlights the emerging role of youth innovation, technology adoption, and digital skills development in shaping Tanzania’s economic future. Drawing on Dr. Kahyoza’s expertise in financial modeling, investment strategy, and development policy, the study emphasizes the need for adaptive policy frameworks that empower young entrepreneurs and foster sustainable, technology-driven growth.

With over 30% of Tanzania’s population falling within the Gen Z cohort (ages 13–28), this generation represents the country’s most digitally fluent and innovation-oriented demographic. The paper argues that Tanzania’s young people are uniquely positioned to drive digital transformation, job creation, and economic diversification—if supported by inclusive policies and strategic investments.

Key Findings and Insights

• Gen Z as a digital powerhouse: More than 70% of Tanzanians under 30 actively use digital tools to earn, learn, or trade. However, only 45% of youth have internet access, limiting the scalability of their economic potential.
• High informality but high innovation: Despite 82% informal employment in non-agricultural sectors, Gen Z is leveraging mobile money, fintech apps, and e-commerce to create digital livelihoods, signaling a shift toward the “digital hustle economy.”
• Case studies of success:
  • Nala, a Gen Z–founded fintech startup, processes over $100 million in remittances annually, employing 50 young developers.
  • Ramani, an agritech platform, uses AI to digitize supply chains for 10,000 young farmers, creating 200 youth jobs.
• Continental momentum: Across Africa, Gen Z-led ventures—especially in fintech and AI—are driving innovation, with Africa’s e-commerce sector projected to hit $75 billion by 2025.
• Private sector commitment: Initiatives like the Tony Elumelu Foundation and DAI Global have already supported 42,000 Tanzanian youth apprenticeships, showing how PPPs can expand digital inclusion.

Policy Gaps and Opportunities

While Tanzania’s Digital Economy Strategic Framework (2024–2034) and National Youth Development Policy (2024) provide a strong foundation, implementation gaps persist—particularly in access to funding, digital infrastructure, and gender inclusion.

Key structural constraints include:

• Limited financing for youth-led start-ups.
• Low broadband penetration in rural areas (only 31% of households).
• A disconnect between education curricula and digital economy needs.

Policy Recommendations

To unlock Gen Z’s digital potential, the paper proposes a comprehensive set of reforms:

1. Digital Literacy Subsidy Program: Public-private partnerships (PPPs) should provide subsidized digital training for 2 million youth by 2028, reducing NEET rates by 15%.
2. Fintech and Agritech Start-up Fund: Local grant mechanisms and gender-inclusive finance to support 500,000 Gen Z entrepreneurs.
3. PPP-Led Broadband Expansion: Extend rural connectivity to 80% of households under UNESCO’s Digital Agenda Initiative.
4. AI and Innovation Hubs: Establish at least five national digital innovation hubs linked to universities to incubate youth-led ventures.
5. Tax Reforms for Digital Enterprises: Incentivize tech startups with 0–5% tax brackets for early-stage growth phases.

Conclusion

Tanzania’s Gen Z holds the key to the nation’s digital and economic future. With policy coherence, infrastructure development, and public-private collaboration, Gen Z can evolve from digital consumers into creators of sustainable wealth and innovation.

The authors emphasize that digital entrepreneurship is not merely an economic strategy—it is a pathway to equity, inclusion, and intergenerational transformation. By 2030, with well-implemented reforms, Tanzania could emerge as one of Africa’s leading hubs for youth-led digital innovation.

📘 Read the Full Discussion Paper:
“Empowering Tanzania’s Gen Z: Economic Inclusion Through Digital Entrepreneurship and Policy Reforms”
Authored by Dr. Bravious Felix Kahyoza PhD, FMVA, CP3P (braviouskahyoza5@gmail.com) and Amran Bhuzohera
Published by TICGL | Economic Research Centre
🌐 www.ticgl.com