This article explores how Tanzanians can leverage AI technologies to address unemployment, drive innovation, and contribute to national development.

The global economy is undergoing a profound transformation driven by digitalization and artificial intelligence (AI). As data collection and analysis become central to economic activity, the emergence of what scholars term the “AI economy” presents unprecedented opportunities and challenges, particularly for youth in the Global South. 

This article examines the intersection of Tanzania’s demographic dividend with youth comprising 37% of the population and the expanding AI economy, exploring how young Tanzanians can leverage AI technologies to address unemployment, drive innovation, and contribute to national development. 

Tanzania’s youthful population represents both a significant asset and a pressing challenge. With 37% of its population classified as youth (ages 15-35), the country possesses substantial human capital that could drive economic growth and innovation. However, this demographic dividend remains largely untapped. 

The Tanzanian education system produces approximately 600,000 graduates annually from various educational levels, yet youth unemployment rates remain critically high, with estimates suggesting that over 800,000 young people enter the job market each year while only 40,000-60,000 formal sector jobs are created. This mismatch between educational output and employment opportunities reflects several systemic challenges, including a traditional education system that prioritizes certification over practical knowledge transformation.

Furthermore, youth have not fully explored opportunities in emerging sectors, such as the digital economy, agriculture modernization, and innovative service delivery. The question becomes: How can Tanzania transform this challenge into opportunity? 

Artificial intelligence is fundamentally reshaping economic structures worldwide. The global AI market, valued at approximately $196.63 billion in 2023, is projected to reach $1.81 trillion by 2030, growing at a compound annual growth rate of 37.3%. In Africa, AI adoption is accelerating, with applications emerging in mobile money services, agricultural advisory systems, healthcare diagnostics, and e-governance platforms. 

Tanzania specifically has witnessed growing AI integration in sectors such as agriculture, where AI-powered crop monitoring, pest detection, and yield prediction systems are becoming increasingly prevalent ; healthcare, with diagnostic tools and patient management systems; financial services, through mobile banking algorithms and credit scoring models; education, with adaptive learning platforms and automated assessment tools; and tourism, with personalized recommendations and virtual tour guides .

Machine learning algorithms enable rapid data collection, analysis, and pattern recognition, facilitating evidence-based decision-making and predictive problem-solving, which is particularly valuable in resource-constrained environments. AI-driven models assess the creditworthiness of those without traditional credit histories by evaluating alternative data sources, promoting financial inclusion. 

In Kenya for instance, Tala analyzes mobile phone usage and payment behavior, which then helps make it easier for customers to be approved for micro-loans. Similarly, Jumo, a banking as a service platform operating in Ghana, Tanzania, Kenya, Uganda, Zambia, Côte d’Ivoire, and South Africa, uses AI and machine learning (ML) to create tailored financial products for the unbanked. 

The transition from traditional credential-based education to competency-focused learning is essential for youth to thrive in the AI economy. 

While certification and professional licensing remain important for safety standards and career qualification, graduates and non-graduates alike must embrace continuous learning and practical application of AI tools. 

AI literacy should encompass understanding AI fundamentals, developing proficiency in practical tools, cultivating critical thinking skills to evaluate AI outputs, and fostering ethical awareness regarding responsible AI use, data privacy, and societal implications. Research indicates that experiential learning by doing and making mistakes is particularly effective for developing AI competencies. Tanzanian youth should engage with readily available AI tools while simultaneously developing problem-solving initiatives that address local challenges. 

Youth can organize themselves into small groups (1-5 members) to form cooperatives or companies focused on AI-driven solutions. This collaborative approach offers several advantages, including risk sharing, complementary skills, enhanced credibility, and peer learning. Tanzania offers various financing options for youth entrepreneurs, including community-level funds, municipal programs, national initiatives, and commercial loan products.

However, success requires discipline, perseverance, and realistic expectations, as building sustainable AI-driven enterprises takes time and resource mobilization. Access to experienced AI mentors is crucial for youth empowerment, providing technical guidance, business acumen, network access, and psychological support. Tanzania should establish structured mentorship programs connecting youth with AI professionals, successful entrepreneurs, and academic researchers.

Opportunities abound across various sectors. In agriculture, youth can develop pest identification mobile applications, weather prediction tools, and market price information systems. In healthcare, they can create telemedicine platforms and health information management systems. The tourism sector offers potential for personalized recommendations, virtual tour guides and wildlife monitoring systems. In the mining sector, youth with technical training can develop specialized applications for geological surveying, safety monitoring, and operational efficiency. 

Long-term success requires systemic changes, including educational reform to integrate AI literacy into curricula, infrastructure development to expand internet connectivity and computing resources, policy frameworks to encourage innovation, public-private partnerships to facilitate training and resource sharing, and research investment to support local AI initiatives. The AI economy will prove sustainable only when innovation and knowledge transformation translate into concrete action. Youth cannot afford to wait for “the right time”. The time to act is now (Do It Now- Do It Yourself), thinking ahead of current trends and anticipating future developments – the future is You- the Future is Now.

Agriculture is another area touching the majority of Tanzanians as about 70 percent engage in agriculture. AI will enable the country to increase production and access the global market. However, AI wasn’t a new aspect to the country, noting however that despite its presence in developed countries, Africa including Tanzania haven’t exploited the benefits fully compared to developed countries. 

Tanzania’s youth represent the nation’s greatest asset for navigating the AI-driven future. With 37% of the population under 35 and 600,000 graduates entering the workforce annually, the country possesses immense potential for innovation and economic transformation.

However, realizing this potential requires deliberate action, shifting from credential-focused to competency-based education, providing accessible AI training and mentorship, facilitating entrepreneurial financing, and fostering a culture of experimentation and continuous learning. The alternative of maintaining the status quo risks perpetuating unemployment and dependency, creating what might be termed a “waiting generation” unprepared for the demands of the modern economy. 

By contrast, strategic investment in youth AI capabilities can unlock opportunities across agriculture, healthcare, tourism, mining, and beyond, driving inclusive economic growth and positioning Tanzania as a competitive player in the global digital economy. The future belongs to those who prepare for it today. For Tanzanian youth, the AI economy offers not just employment opportunities but the chance to become creators, innovators and problem-solvers addressing the challenges facing their communities and nation. 

The journey begins with awareness, continues through hands-on skills (Soft and Hard Skills) and culminates in transformative action. The time to embark on this journey is now. Tanzania’s youth must not become the “Daddy I Am Going” generation dependent and waiting for opportunities to arrive. Instead, they must seize the moment, harness AI technologies and build the future they envision.

The question is not whether Tanzania’s youth can succeed in the AI economy, it is whether they will choose to act.

About the Author

Peter Mmbando, is enthusiastic in Cyber Diplomacy, Digital Rights and AI governance, with a strong commitment to fostering cyber peace, sustainable development and addressing the urgent challenges of digital climate resilience. Peter can be reached on LinkedIn and on Xtra

Disclaimer: The views expressed in this article are those gathered by the author and do not necessarily reflect the official position of DA4TI or its affiliates.