Tanzania is set to invest TZS441.12 billion in a specialised technology college in Dodoma, with financing from South Korea, in a move aimed at addressing the shortage of highly skilled professionals needed to support the country's digital transformation.
The proposed Dodoma Technology Institute (DTI) will focus on developing advanced skills in Information and Communication Technology (ICT), including artificial intelligence (AI), as Tanzania seeks to strengthen its capacity to participate in the expanding digital economy.
The project will be financed through a concessional loan of $167.4 million (about TZS441.12 billion) from the South Korean Government through the Economic Development Cooperation Fund (EDCF).
The financing agreement was signed on November 3, 2026, between the Tanzanian Government and the Export-Import Bank of Korea (Korea Exim Bank).
Speaking during the signing ceremony in Dar es Salaam, Treasury Permanent Secretary Natu El-Maamry Mwamba said the institution would help develop highly skilled professionals while strengthening the country's ICT sector.
She said the college would have modern training facilities, laboratories, digital infrastructure and research facilities, alongside initiatives to strengthen links between educational institutions and industries.
Such collaboration, she said, would help address the mismatch between skills produced by training institutions and those required by employers, while supporting technological innovation.
"The project comes at an opportune time as Tanzania continues to implement its digital transformation agenda and build the human resources and institutional capacity required to participate fully in the digital economy," Dr Mwamba said.
The investment is expected to strengthen the country's technical education capacity at a time when businesses, public institutions and industries increasingly depend on digital systems and emerging technologies.
However, the institution's contribution will ultimately depend on its ability to produce graduates with practical skills that respond to labour-market demands and support local innovation.
Dr Mwamba said the Ministry of Finance would work closely with the Ministry of Communication and Information Technology and other institutions involved in the project to ensure its effective implementation.
She added that the government would provide the necessary counterpart funding to support the execution of the project.
For South Korea, the agreement represents another step in its development cooperation with Tanzania, particularly in building technological capacity.
Korea Exim Bank Senior Executive Director Dong-Hoon Lee said the project was significant for both countries, describing it as the first EDCF project approved this year and the first to incorporate support in the area of artificial intelligence.
He said discussions on the project started in April 2026, followed by the issuance of the South Korean Government's policy support in August, before the two sides reached the agreement-signing stage in November.
Mr Lee attributed the progress to strong cooperation from the Tanzanian Government, saying South Korea remained committed to supporting the country's development through investments in strategic sectors.
He said the two countries would continue strengthening cooperation in areas including roads, energy and health.
"This cooperation will strengthen mutual growth and friendship between the two countries," he said.
The DTI project adds to a portfolio of development initiatives being implemented in Tanzania with financing from Korea Exim Bank.
The bank is supporting projects worth more than $1.12 billion across various sectors, including energy, agriculture, water supply and sanitation, railways and other development areas.
For Tanzania, the proposed college presents an opportunity to strengthen local expertise in advanced technologies, reduce reliance on external skills and prepare a workforce capable of supporting the country's digital ambitions.