Challenges such as limited market access, weak investor networks, regulatory barriers and insufficient business development support continue to constrain the growth of startups in Tanzania
Dar es Salaam. As Tanzania intensifies efforts to attract private investment and promote inclusive economic growth, startups are increasingly being seen as important contributors to innovation, job creation and business transformation.
However, despite the growth in entrepreneurial activity across various sectors, many startups struggle to move beyond the idea stage into sustainable and scalable enterprises.
Challenges such as limited market access, weak investor networks, regulatory barriers and insufficient business development support continue to constrain their growth. Industry stakeholders say access to finance is important, but not sufficient on its own.
They argue that early-stage startups often need customers, commercial partnerships and market validation before they can attract investment and scale their operations.
This has increased the role of large corporations in supporting entrepreneurship ecosystems, not only as sources of funding but also as partners that can provide market access, mentorship and integration into value chains.
This was the subject of debate at the recent Tanzania Impact Investment Forum (TIIF).
Among the speakers at the event was Vodacom Tanzania External Affairs and Vodacom Foundation Director Zuweina Farah (pictured), who cited the telecommunication firm’s role in expanding support for startups.
Giving example she said, through the Vodacom Digital Accelerator (VDA) programme, the company equips startups with skills, networks and exposure to help them scale technology-driven businesses.
The programme was launched in 2019. It was paused during the Covid-19 pandemic in 2020 and 2021 before resuming in 2022. The fifth cohort is scheduled for July this year.
Ms Farah said about 120 startups have participated in the programme so far, creating more than 5,000 jobs.
She said the accelerator has also linked entrepreneurs with investors, enabling several startups to secure funding for expansion. This year, two entrepreneurs received investment commitments of $300,000 each, while another secured about US$150,000 through connections made via the programme.
She noted that structured support programmes are increasingly proving important in strengthening Tanzania’s private sector and improving the chances of startup success.
According to Ms Farah, many early-stage startups do not primarily need funding but require access to markets and customers that can validate their products and generate revenue.
She said Vodacom’s large customer base and digital infrastructure help bridge this gap by connecting entrepreneurs to real market opportunities.
However, stakeholders say broader reforms are still needed to strengthen the startup ecosystem. Ms Farah called for improved policy and regulatory frameworks to support innovation and reduce barriers to growth.
She also highlighted the need for incentives such as tax relief and more predictable regulations, noting that an unfavourable policy environment can limit business survival and expansion.
As Tanzania advances its private sector-led growth agenda, stakeholders say coordinated efforts by government, investors, development partners and corporates will be essential to building a stronger startup ecosystem.
