World Bank OKs Programs for Tanzanian Skills, Jobs, Aid

World Bank

WASHINGTON, March 31, 2026 - More than three million Tanzanians are expected to benefit from two new World Bank-supported programs in the high-need sectors of education and social protection. The new programs will equip young people with job-relevant skills and help the most vulnerable households build resilience and pursue productive livelihoods. The World Bank's Board of Executive Directors approved International Development Association* (IDA) financing for these programs today.

Together, the Second Education and Skills for Productive Jobs (ESPJ-II) Program and the Tanzania Productive Social Safety Net III (PSSN III) will expand employment pathways for youth, improve access to industry-led training, and strengthen social protection systems that help vulnerable households build resilience against economic and climate-related shocks.

"Earlier phases of these programs have shown that investing in people delivers results-strengthening human capital, improving the well-being of the poorest households, and equipping young women and men with job-relevant skills for productive employment," said Nathan Belete, Division Director for Tanzania, Malawi, Zambia and Zimbabwe. "Jobs do more than generate income; they create hope and dignity. By expanding opportunities for youth and protecting the most vulnerable, these new operations will help deliver on that promise for more Tanzanians."

The ESPJ-II is a $300 million Program-for-Results that aims to increase the number of graduates with job-relevant skills for better and more inclusive employment in priority sectors of Tanzania's economy. It is expected to benefit about one million Tanzanians, including at least 45% women, support more than 656,000 graduates in securing new or improved employment, contribute to a 10% real income increase for individuals re-entering the job market, and align around 80% of targeted medium-to-advanced technical programs with industry needs in priority sectors.

The program will address skills mismatches, gaps in training quality and relevance, and unequal access to technical and vocational education. It builds on earlier World Bank-supported initiatives, including the Higher Education for Economic Transformation (HEET) project and the East Africa Skills for Transformation and Regional Integration Project (EASTRIP).

The PSSN III is a $250 million project that seeks to strengthen income-generating opportunities and human capital for poor households while enhancing national social protection systems. It is expected to benefit approximately 2.2 million people through productive cash transfers and climate-smart public works.

Alongside support for cash transfers, the project will promote savings and access to finance, provide training and coaching to strengthen and diversify livelihoods and self-employment, and improve skills development and income-generating opportunities for 10,000 youth. It will also expand digital delivery systems including a social registry and strengthen links between social protection and pathways to employment.

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