Startups pin hopes on Sh200bn pledge toward Samia’s 100 days

For startups, the pledge signals potential recognition as a strategic sector capable of driving job creation, industrialisation and inclusive growth—provided the promised funding is structured to meet their realities.

The Tanzania Startup Association (TSA) says the announcement was received with optimism, following years of advocacy for startups to be treated as a distinct part of the economy.

Speaking to The Citizen, TSA senior manager for Programmes and Operations Praygod Japhet said startups expect the pledge to move them from the margins of policy discussions to the centre of national development planning.

“For the first time, startups are being acknowledged at the highest level as contributors to growth, employment and digital transformation,” he said.

He added that beyond funding, startups expect clearer prioritisation across government institutions, regulators and investors.

“This is not only about money. Startups are looking for coordinated support—simpler regulations, policy clarity and institutions that understand how innovation-led businesses operate,” Mr Japhet said.

According to TSA, the pledge also raises expectations that the long-discussed national startup policy will be finalised and implemented, addressing persistent barriers such as early-stage financing gaps, regulatory uncertainty and limited market access.

Stakeholders believe that clear political commitment could also reassure investors at a time when global startup funding has become more cautious.

“When government shows consistency and intent, investors gain confidence to commit patient capital to early-stage ventures,” Mr Japhet said.

The Tanzania Startup Ecosystem Status Report 2024 shows the number of active startups grew by 24 percent to 1,041, with employment linked to the sector exceeding 138,000 jobs, despite ongoing financing constraints.

However, ecosystem players say expectations hinge on how the proposed Mama Samia Innovation Fund will be designed and managed.

Transparency is a key demand Startups want clear eligibility criteria, accessible application processes and professional decision-making structures to avoid perceptions of favouritism.

“Founders expect financing that reflects startup realities—low-interest terms, flexible repayment schedules and grace periods that allow ideas to mature,” Mr Japhet said.

Entrepreneur and startup mentor Michael Nyamwero said many founders also expect the fund to go beyond capital.

“Funding alone is not enough. Startups are looking for mentorship in governance, financial management and scaling. Without that, even well-funded ventures can fail,” he said.

He added that lessons must be drawn from past youth financing schemes that collapsed due to weak oversight and follow-up.

Entrepreneurship lecturer at St Augustine University of Tanzania, Ms Kamsango Ibrahim, said startups expect the initiative to be professionally governed and insulated from political interference.

“Sustainability will depend on strong governance and long-term capacity building, not short-term handouts,” she said.

Serial internet entrepreneur Mike Mushi said many startups hope the fund will finally address the shortage of patient, risk-tolerant capital.

“Bank loans are often unsuitable for startups. What founders expect is capital that understands risk and growth cycles,” he said.

TSA has also urged that startups outside major urban centres benefit from the fund, noting growing innovation in agriculture, health and education across the regions.

For now, the startup community remains cautiously optimistic, waiting to see whether the Sh200 billion pledge will evolve into systems that genuinely empower innovators and strengthen Tanzania’s entrepreneurial landscape.