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