Government kicks off consultations for Tanzania’s first startup policy

Dar es Salaam. After years of advocacy from entrepreneurs and stakeholders, Tanzania has officially embarked on the formulation of its long-awaited national startup policy.

The government has now launched a consultative process, inviting industry players to contribute their insights to ensure the policy effectively addresses key challenges and creates a thriving ecosystem for innovation.

The Tanzania Startup Association (TSA) and other industry advocates have long called for a robust policy framework and the establishment of a Tanzania Venture Capital Fund through a public-private partnership.

Their primary goal is to address regulatory and financial hurdles, unlock opportunities for growth, and position Tanzania as a key player in Africa’s innovation landscape.

Speaking at a stakeholder engagement forum in Arusha on March 15, 2025, Minister for Information, Communication, and Information Technology Jerry Silaa reaffirmed the government’s commitment to creating an enabling environment for startups.

“We want to ensure that young entrepreneurs and startups have the right support to turn their innovative ideas into successful businesses and expand job opportunities,” said Silaa.

He further highlighted the government’s strategic focus on digital economy growth, pointing out that among the six pillars of Tanzania’s digital economy framework, a dedicated component aims to enhance innovation and skill development among youth.

“We are also setting up a Centre of Excellence under the Tanzania Digital Institute in Dodoma to provide training and mentorship to university students and other young innovators outside the formal education system,” he added.

To ensure that the startup policy reflects the real needs of entrepreneurs, the government has commenced a baseline study, gathering input from key players in the startup ecosystem.

Entrepreneurs, investors, and other stakeholders have been invited to fill out questionnaires outlining their expectations and the challenges they face.

“We have started in Arusha, but this consultation will expand to major cities across Tanzania. The goal is to gather broad perspectives to draft a policy that truly represents the interests of startup founders and industry stakeholders,” Minister Silaa explained.

The formulation process is set to address key issues such as access to funding, ease of doing business, regulatory navigation, and market expansion.

Entrepreneurs have repeatedly called for an overhaul of policies that hinder startup growth, particularly concerning bureaucratic red tape and limited investment opportunities.

Director General of the ICT Commission, Dr Nkundwe Mwasaga, emphasised that beyond policy, the government is also investing in capacity-building initiatives.

One of these is a scholarship programme that will enable young innovators to acquire critical knowledge in digital entrepreneurship and technology development.

“There is a great opportunity for young innovators to enroll in technical training programmes, gain certifications, and understand global best practices in startup growth and innovation. We encourage as many young people as possible to take advantage of these scholarships,” said Dr Mwasaga.

He reiterated that the programme is open to all creative individuals, regardless of their academic background, as the focus is on fostering talent and equipping aspiring entrepreneurs with the necessary knowledge to scale their businesses.

Stakeholders have welcomed the government’s move, noting that a well-structured startup policy will help unlock investment opportunities and create a more predictable business environment.

TSA’s Chief Executive Officer, Zahoro Muhaji, expressed optimism, stating that the initiative is a strong signal that the government is serious about supporting startups.

“This forum shows that the government is responding with action to President Samia Suluhu Hassan’s promises of creating a business-friendly environment for innovators. The Ministry is actively engaging with stakeholders to address concerns that have long hindered startup growth,” he said.

An industry expert and startup mentor, Dr Pamela Chogo, described the policy development process as a landmark moment for Tanzania’s innovation ecosystem.

“For years, startups have struggled with a lack of clear regulations, limited funding access, and an unpredictable business environment. Seeing the government take a collaborative approach gives us hope that these challenges will soon be addressed,” she remarked.

As part of broader efforts to support the innovation economy, TSA is also spearheading the Tanzania Startup Ecosystem Status Report 2024. This initiative seeks to map key players in the ecosystem and provide data-driven insights to shape inclusive and effective policies.

With the startup policy process now in motion, Tanzania is poised to tap into the potential of its young and tech-savvy population.

If successfully implemented, the policy is expected to streamline regulatory processes, attract investment, and nurture homegrown innovations that could transform the economy.