The Prime Minister of Tanzania, Mwigulu Nchemba, has announced that the government is preparing a law that will allow academic diplomas to be used as collateral when applying for loans.
He made the remarks on April 11, 2026, while responding to questions from members of the Parliament of Tanzania about rising youth unemployment in the country.
Members of Parliament, including Timida Fryandomo and Isack Copriano, asked the Prime Minister what steps the government is taking to address the growing number of educated young people who remain without jobs.
Nchemba explained that the government is finalizing a program that will formally recognize university graduates and skilled professionals, allowing their diplomas to serve as assets when seeking financial support from banks and lending institutions.
The initiative is expected to help many young people who have ideas for businesses but lack property or other assets required by banks as collateral. By recognizing diplomas as a form of asset, graduates will be able to access loans and invest in entrepreneurship and innovation.
Under the proposal, a diploma would be considered a personal asset belonging to the graduate, enabling them not only to seek employment but also to secure financing for small businesses and startup projects.
The Tanzanian government has already allocated about 280 billion Tanzanian shillings to support youth-focused initiatives under the program.
Youth unemployment remains a major concern in Tanzania, with about 11.5% of young people currently without jobs. Each year, more than 900,000 young people enter the job market, and projections from the World Bank indicate that this number could reach 1.6 million annually by 2030.
