The absence of new farming technology application skills, entrepreneurship, and financial management skills among youth, particularly those in rural areas, have remained critical challenges limiting their performance and accessibility to resources such as loans. Access to [47] extension services to youth is also limited, a situation that discourages youth engagement in agriculture. Youth in rural areas have smartphones, but they lack the skills to use them to access information related to the market and access to agro-inputs and logistics. [48]
Consequently, enforcement of contract farming has remained weak, and the interests of parties in the contract are not protected. Some contract buyers who offer inputs to youth on credit fail to recollect their investments as youth get involved in side-selling. [53]
Challenge 15: Youth’s limited access to agro-inputs and extension services
Compared to middle aged farmers, youth apply fewer modern mechanized farming techniques (i.e., application of quality seeds, fertilizers and pesticides), even when improved seeds and other agro-inputs are available in their localities. This is because youth lack cash to procure them, and their access to sources of finance (direct credits) and value chain financing are limited. Consequently, youth perceive the utilization of improved agricultural inputs and the application of recommendations from extension officers as expensive and unaffordable. In some rural areas, the supply of tools and machinery is limited, which is also a major obstacle to the mechanization of farming by youth. [54]
Challenge 13: Challenges with the current government-led access to credit programs for youth
The Government, through the National Youth Development Fund (NYDF), has been offering loans to youth groups since July 2015, but there is limited data on the groups that were involved in agribusinesses. Accessibility of funds from Local Government Authorities (LGAs) to youth remains challenging, especially for youth in agribusiness. LGAs offer loans to youth who can demonstrate the recoverability of funds, but most youth lack entrepreneurial and financial management skills. Thus, they are unable to prepare fundable project proposals. Due to their limited savings, youth cannot afford to pay for the cost of proposal development by BDS. LGAs are considered bureaucratic by many youth. Indeed, LGAs reach less than 50% of the groups they intend to serve and offer 25% of funds allocated for loans to youth and women. Access to loans from commercial banks has remained limited as banks require collateral (non-movable assets such as land and houses), which the majority of youth fail to provide as they do not own assets. Youth cannot get loans from cooperatives because they are not members. [50] [49]
Challenge 16: Climate change and environmental sustainability
The mounting pressures exerted by climate change and environmental degradation have far-reaching consequences for agricultural livelihoods, which are highly dependent on natural resources and ecosystem services. This, in turn, can have negative consequences on the development of youth enterprises in agriculture. Climate change-induced weather variability and greater prevalence of drought and flooding are expected to further disrupt farmers’ operations in the agriculture sector. Estimates indicate that an expected 15% reduction in rainfall could cause a 16% decrease in yields by 2030. Inefficient irrigation and water management are further expected to put pressure on already stretched freshwater resources (the agriculture sector alone being responsible for over 80% of the country’s total freshwater withdrawal despite the majority of farming being rain-fed). [55] The dependence of agriculture on rainfall increases exposure to climate risks, particularly to frequent droughts and periodic flooding. This increases the necessity for youth engaged in agriculture to adopt and practice climate-smart agriculture (CSA). Climate-smart agriculture (CSA) is agriculture that increases productivity, improves resilience, and mitigates climate change. The adoption of advanced farming technology is necessary to speed the transition to CSA in Tanzania. [56]
C hallenge 14: Youth's limited access to market, related infrastructure, and auxiliary services
Limited access to markets, appropriate logistics facilities, packaging materials and limited market information have been major challenges for youth. These challenges result in an unreliable and low price of crops and high post-harvest losses, especially for perishable crops like horticulture, in which the majority of youth are involved. Transport costs are also considered very high. The [52] development of out-grower schemes or contract farming, which could provide a ready market and facilitate value chain financing and access to improved agro-inputs, is challenged by the lack of contract farming laws/ regulations to govern contract farming implementation and the protection of parties involved. [51]
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Youth Enterprise Policy Analysis Report
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