In a bold move to accelerate youth-led innovation and entrepreneurship, CRDB Bank Foundation and the Tanzania Commission for Science and Technology (COSTECH) have signed a TZS 2.3 billion partnership agreement aimed at bridging the financing gap for startups across the country.
Announced yesterday in Dar es Salaam, the agreement signals a new phase in public-private collaboration through the IMBEJU BUNI initiative, a dedicated financing window under the CRDB Bank Foundation. The initiative specifically targets youth startups with the goal of creating a more inclusive and innovation-driven economy.
Speaking during the signing ceremony, Minister for Education, Science and Technology, Prof. Adolf Mkenda, emphasized the strategic significance of the partnership.
“By investing in youth startups, we are laying a foundation for a more innovative and self-sustaining economy,” he noted, describing the initiative as a tangible response to the government’s commitment to science, technology, and economic empowerment.
Under the terms of the agreement, CRDB Bank will provide startup loans to young entrepreneurs, while COSTECH will offer technical expertise, mentorship and organize business bootcamps.
This dual approach addresses not only the capital needs of startups but also the critical skills gap that often hinders business growth.
CRDB Bank Foundation Managing Director, Tully Esther Mwambapa, described the agreement as a strategic milestone.
“We aim to support over 1,000 youth across the country with accessible financing, financial literacy and entrepreneurial training to help build sustainable businesses,” she said.
To make financing more accessible, the programme introduces flexible and innovative collateral requirements, including the use of contracts, invoices, and business history, an approach that lowers barriers for young businesses typically excluded from formal lending systems.
Dr. Amos Nungu, COSTECH’s Director General, lauded the partnership as a continuation of the journey started in 2023 through the IMBEJU programme, which has already sparked youth engagement in innovation.
“This agreement will provide the right tools, mentorship and funding for youth startups to scale and make a meaningful impact in society,” he said.
The establishment of a joint steering committee underscores the partners’ commitment to transparency, monitoring and accountability. This governance structure will oversee implementation and ensure that the intended objectives are met.
The initiative arrives at a critical time, as Tanzania seeks to harness the demographic dividend of its youthful population.
According to national data, nearly 70% of the population is under the age of 35, making youth entrepreneurship a potential engine for job creation and inclusive growth.
Beyond financing, the programme’s inclusion of business skills training and financial literacy demonstrates a holistic strategy to foster a new generation of capable and resilient entrepreneurs.
This new collaboration adds to the CRDB Bank Foundation’s growing track record. Over the past year, the foundation has disbursed more than TZS 20 billion to support over one million youth and women entrepreneurs in various sectors, reaffirming its role as a key driver of grassroots economic transformation.
As Tanzania intensifies its efforts to build a knowledge-based economy, partnerships like the one between CRDB and COSTECH are seen as essential to translating innovation into sustainable livelihoods and national progress.
