Inadequacy of farming land for youth, particularly in Zanzibar. There is misappropriation and misallocation of land utilization. Lack of incubators for different sub-sectors (e.g., aquaculture farming). This inhibits youth enterprises from acquiring the needed skills and experience to maximize the benefit from the respective sector. Difficulties certifying sea fish products. These reduce the market share of the products.
Currently they only cover FinTechs. Start-ups should go beyond the technology space. They should include agriculture, services etc. Provide financial education and awareness on alternative financial instruments available through workshops, seminars, and webinars to enhance entrepreneurship and financial literacy among startup founders and encourage them to explore diverse funding sources. [78] Cultivate local investor networks by establishing platforms and events that facilitate connections between startups and potential investors, including local angel investors and venture capitalists, and promoting the benefits of investing in early-stage businesses to encourage more investors to participate in the startup ecosystem. Implement government-backed funds or incentives by establishing a National Venture Capital Trust Fund or similar initiative to stimulate investment in the startup ecosystem and offering tax incentives, guarantees, or co- investment schemes to encourage private sector participation in startup financing. The Local Government Policy that established Decentralization by Devolution and its Local Government Act No. 7 in Zanzibar is no longer valid due to the President’s order to remove the The current startup environment in Tanzania is marked by the lack of a specific law or policy on startups. There is an ongoing initiative to establish a startup policy. This important process must involve extensive stakeholder consultation and involvement, particularly with the private sector, think tanks, industry experts, and startups themselves through their networks. The process should also consider a range of initiatives to broaden the definition of start- ups: devolution system by Act No. 5 of 2021. Currently, LGAs have no policy guidelines for their roles and functions, so they operate through the President’s orders, which change occasionally. The current regulations are not conducive to facilitating an easy flow of funds in and out of the country to finance-supporting investors like venture capitalists, angel investors, and equity investors. There is no guiding policy for the disbursement of impact funds channeled through commercial banks to benefit youth enterprises. This makes them inflexible regarding the practical realities on the ground.
Advocacy initiatives in place
Most PSAs conduct ongoing advocacy on several issues as their primary focus. For instance, representatives from the Sokoine University Graduate Entrepreneurs Cooperative shared that they engage in frequent dialogue and advocacy to transform the business environment into supporting youth-led enterprises. Members of Association for Zanzibar Social and Economic Empowerment shared that they have an advocacy manual. Still, their advocacy interventions are implemented in pieces with no short-, medium-, and long-term policy implementation plans.
Some of the ongoing advocacy issues from different PSAs include:
There is a need for a review of the clove policy, which some participants claimed to be exploitative and does not play a role in establishing a fair market development that benefits growers and pickers. Influencing LGAs to plan for dedicated market spaces for youth and women in Zanzibar would support the needs of women entrepreneurs (the current market store build is expensive and lacks space for this). There is an immediate need for reforms of the national education system to review the curriculum to create entrepreneurs and innovators. There is a need to work closely with the Zanzibar Ministry of Health on sexual reproductive health to improve the lives of young people, in particular adolescent girls, women, and young mothers.
Policy or effective policy enforcement gaps
The private sector players agree that policy gaps and enforcement challenges significantly contribute to the slow growth of youth enterprises. Also, they admit that when policies and their enforcement mechanisms are friendly and effective, they enhance the development and competitiveness of the beneficiaries. In that regard, the stakeholders have suggested areas that require policy or effective policy enforcement to promote the growth and sustainability of youth enterprises.
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Youth Enterprise Policy Analysis Report
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