"Lipumba: Government Must Act to Tackle Tanzania's Economic Challenges"

Lipumba Calls for Economic Growth Policies to Tackle Unemployment

Dar es Salaam, March 2, 2025 — The Chairman of the Civic United Front (CUF), Professor Ibrahim Lipumba, has underscored the persistent challenges faced by young Tanzanians, particularly in securing employment, despite completing their studies. He attributed the growing unemployment rate among graduates to the lack of economic growth strategies, widespread corruption in public projects, and the self-serving nature of current leadership.

Speaking to journalists on Sunday, Lipumba laid out CUF's vision for the upcoming general elections, urging the government to take the plight of the youth seriously. He warned that without a change in direction, the situation will worsen, leaving future generations in even greater economic despair.

On the other hand, Government Spokesperson Gerson Msigwa recently reassured the public that the government would continue to offer employment opportunities in various sectors, including education, as they become available. His statement came in response to a recent press conference by the National Teachers’ Organization, which pressed the government to address the lack of job opportunities for graduates between 2015 and 2023.

However, tensions escalated just days later, as several leaders of the organization were arrested for operating without legal registration.

Professor Lipumba criticized the government's failure to implement policies that would stimulate economic growth and create substantial job opportunities for young people. He pointed to the ongoing rise in living costs and the lack of meaningful employment for graduates as a result of economic stagnation.

“The situation for Tanzanians continues to worsen. Many youth are unemployed, resorting to unproductive activities that jeopardize their futures. Even university graduates are struggling to find work,” said Lipumba.

He also addressed the rising cost of living, dismissing the government's claims that inflation is only at 4%. “Tanzania is classified among the low-middle-income countries. Of every 100 Tanzanians, 45 live in poverty according to international standards,” he added. Lipumba, an economist by training, also criticized the government for failing to leverage the nation's vast natural resources, such as minerals, natural gas, and tourism, to drive economic development.

With Tanzania’s population growing by 3.2% annually, Lipumba projected that by 2045, the nation’s population will double to 124 million. Without targeted job creation policies and entrepreneurship training, he warned, the problem of unemployment will become far more severe.

Despite this, Lipumba noted that the national investment rate has been impressive, averaging 40-45% over the past seven years. However, he pointed out that economic growth has remained stagnant at 5%. “Tanzania’s economy should be growing at 10-12% to match such high investment rates,” he remarked, citing the ongoing construction boom in Dar es Salaam, where investment is funneled into roads and infrastructure instead of more sustainable projects like public transport.

Lipumba suggested that Tanzania’s strategic geographical location, bordered by landlocked nations, presents a unique opportunity for industrial job creation and the development of value-added mineral industries, particularly in battery and electric vehicle manufacturing.

He highlighted the country’s rich deposits of graphite, nickel, cobalt, and lithium, as well as the proximity to the Democratic Republic of the Congo, which boasts vast mineral resources. “Tanzania holds 10% of the world’s graphite reserves, especially in Ruangwa, Lindi region. Moreover, substantial natural gas reserves, discovered in 2000, remain untapped,” he noted. Lipumba expressed frustration over the government's inability to use these resources to stimulate job creation and economic growth.

As CUF continues to prepare its election manifesto, Lipumba assured that the party is thoroughly analyzing Tanzania’s economic challenges and drawing from the successes of other nations to form practical solutions.