The 2026 breakout: Top sectors likely to power Tanzania’s startup success

With a young, increasingly connected population, expanding digital infrastructure, and a government push towards financial inclusion and clean energy, experts argue that startups aligned with these priorities have strong prospects for sustainable growth over the next two years.

Technology-based ventures remain at the centre of this growth story. From software development and data solutions to logistics platforms and artificial intelligence-powered services, tech startups are addressing everyday challenges faced by businesses and households.

According to Sahara Ventures chief executive officer, Mr Jumanne Mtambalike, the most promising tech startups are those solving local problems rather than copying global models without adaptation.

“What we are seeing is a shift from hype-driven innovation to problem-driven innovation.

Startups that focus on practical solutions, such as digitising small businesses, improving supply chains or providing data-driven services, are the ones most likely to survive and grow by 2026,” he said.

He explained that rising smartphone penetration, improved internet connectivity, and growing acceptance of digital tools among small and medium-sized enterprises (SMEs) are creating a ready market.

Government initiatives promoting digital transformation, including e-government services and digital tax systems, also indirectly support tech startups by normalising technology use across sectors.

  Closely linked to technology is financial services, where fintech startups are reshaping how Tanzanians save, borrow, invest, and transact.

Mobile money has already transformed the financial landscape, but experts say the next phase will be driven by startups offering credit scoring, micro-insurance, digital lending, and SME-focused financial tools.

Entrepreneurship lecturer at the University of Dodoma, Dr Rosalyn Kimei said fintech startups remain among the most promising ventures in Tanzania due to unmet demand, particularly among informal businesses and rural communities.

“Despite the success of mobile money, millions of Tanzanians still lack access to affordable credit, insurance, and long-term savings products. Startups that use technology to assess risk, lower transaction costs and tailor products to low-income users have a very high chance of success,” she said.

She noted that regulatory reforms by the Bank of Tanzania, aimed at supporting innovation while protecting consumers, have created a more predictable environment for fintech entrepreneurs.

According to her, startups that collaborate with banks, mobile network operators, and savings and credit cooperative societies (Saccos) are likely to scale faster than those operating in isolation.

Clean energy is another sector attracting growing attention, particularly startups linked to clean cooking solutions.

Tanzania has committed to ensuring that at least 80 percent of households use clean cooking energy by 2034, creating opportunities for entrepreneurs in liquefied petroleum gas (LPG), biogas, electric cooking appliances, and improved biomass technologies.

Startup mentor, Michael Nyamwero said clean energy startups are no longer niche players but central to national development goals.

“The government’s clean cooking agenda has changed the market completely. Startups that provide affordable, accessible and scalable clean cooking solutions are not just environmentally relevant—they are economically viable,” he said.

He added that startups combining energy products with flexible payment models, such as pay-as-you-cook or micro-financing, are especially likely to succeed, given affordability constraints. Beyond cooking, solar energy startups offering mini-grids, solar home systems, and productive-use energy solutions for small businesses also have strong growth potential.

Agriculture, which employs a large proportion of Tanzanian households, remains a critical area for startup success, particularly in agribusiness.

While farming itself is not new, experts argue that value addition, storage, processing, market linkage, and agri-tech solutions present major opportunities for entrepreneurs.

The co-founder of Kilimo Fresh Foods Africa Ltd, Mr Baraa Chijenga said startups that treat agriculture as a business rather than a subsistence activity are most likely to thrive.

“Tanzania’s economy still relies heavily on agriculture, but inefficiencies across the value chain persist. Startups that improve access to quality inputs, reduce post-harvest losses, link farmers to markets or add value through processing will remain relevant beyond 2026,” he shared.

He noted that climate change and population growth are forcing changes in how food is produced and distributed, creating space for innovation.

Digital platforms providing farmers with market prices, weather information, and extension services are increasingly gaining trust among rural communities.

Health-related startups are also emerging as strong contenders, driven by growing demand for quality healthcare services, shortages of medical personnel, and rising health awareness.

Digital health platforms, telemedicine services, health insurance technologies, and pharmaceutical supply chain solutions are gaining traction, particularly in urban and peri-urban areas.

For co-founder of the Plate AI, Janeth-Kareen Kilonzo said health startups are well positioned because they address systemic gaps in service delivery.

“The healthcare system faces challenges in access, affordability, and efficiency. Startups that use technology to connect patients with doctors, manage health records, or improve medicine distribution are filling critical gaps,” she noted.

She added that partnerships with public hospitals, private clinics, and health insurers increase the likelihood of success, allowing startups to integrate into existing systems rather than compete with them.

Preventive health solutions, such as wellness platforms and diagnostic services, are also gaining popularity among younger, urban populations.

Across all these sectors, experts agree that success will depend not only on innovative ideas but also on strong execution, regulatory compliance, and access to finance.

Business development consultant Mr Joseph Kweka said many startups fail not because the idea is weak, but due to poor management and unrealistic growth expectations.

“By 2026, the startups that survive will be those with clear business models, good governance, and the ability to adapt. Investors are becoming more cautious and are looking for sustainability rather than rapid expansion without fundamentals,” Mr Kweka said.

He added that local knowledge remains a critical advantage, urging entrepreneurs to deeply understand the communities they serve.

According to him, startups rooted in local realities, such as income levels, cultural practices, and infrastructure limitations, stand a better chance of earning trust and achieving long-term success.