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Stakeholders commend government plans to launch startup policy
What you need to know:
- The current legal, and regulatory regime accommodate traditional businesses while inadequately srve the modern business models embraced by startups.
Dar es Salaam. The government’s promise to release the long-awaited start-up policy in the next three months has relieved innovators, who see the development as an important step towards supporting a vibrant entrepreneurship and innovation culture in the country.
On Tuesday, June 20, 2023, during the Mwananchi Thought Leadership Forum (MTLF), organised by Mwananchi Communication Limited (MCL) the minister for Information, Communication, and Information technology, Mr Nape Nnauye, hinted that the government will release the Startup Policy, ICT Policy, Digital Public Infrastructure Blueprint, and Digital Strategy for National ICT Infrastructure Development Plan in the next three months.
Mr Mike Mushi, the Founder and Managing Director of Jamii Media, commended the government’s readiness and commitment to implement the Startup Policy and potentially put Tanzanian startups on the global map. “The government’s move gives us the strength to continue to develop innovative ideas, which will create employment opportunities for many jobless graduates,” Mr Mushi said.
“This commitment demonstrates a resolute effort to cultivate an enabling environment for startups across the country,” Mr Zahoro Muhaji, CEO of the Tanzania Startup Association (TSA), said yesterday.
Mr Muhaji said that once released, the documents would complement the existing SMEs policy of 2003 and the National ICT Policy of 2016, which are deemed inadequate, and address the constantly-evolving needs of startups and the dynamics of the entrepreneurial and innovation ecosystem.
He said that with the ongoing advancement of technology, there have been an increasing number of business ventures with innovative products, solutions, and unique business models in the country.
Mr Zahoro said in a TSA media statement that the entrepreneurship and innovation ecosystem has grown and attracted massive interest from stakeholders with distinct roles in both the public and private sectors.
Further, the association’s recent report on the status of Tanzania’s startup ecosystem shows that business ventures created at least 89,509 jobs in 2022, a considerable improvement compared to traditional businesses.
The report notes that Tanzanian startups attracted $80 million in Foreign Direct Investments (FDI) in 2022, a figure on par with the export of some traditional crops such as tea.
The sharp increase, it says, stems from a more robust appetite for entrepreneurship, especially as many young people, including graduates, turn to self-employment.
The same study found that startups have an average employment capacity of 133.3, which is exceptionally superior to traditional small businesses, which have an average of 1.1 jobs.
“The existing policies, legal, and regulatory frameworks accommodate traditional businesses of production and trade while inadequately serving the modern business models embraced by startups,” he noted. The situation, he said, has hugely limited the Tanzanian startups from attaining their full potential, and most have worked against Tanzania’s potential to become a regional magnet for the global digital economy.
Thus, the government’s commitment signified a positive development in promoting entrepreneurship, innovation, youth-led businesses, and driving economic growth in Tanzania.
Many countries across the continent have implemented Startup Policies, Startup laws, and initiatives to foster entrepreneurship and support the development of vibrant startup ecosystems, experts say.
By creating an enabling environment for startups, TSA believes that the frameworks encourage innovation, drive technological advancements, provide access to finance, resources, and mentorship, and nurture a culture of innovation and resilience.
The MTLF forum was held under the theme, Investing in Digital Transformation for a Sustainable and Inclusive Future: Vision 2025.
