Tanzania startup association calls for venture capital fund and startup policy

Dar es Salaam. The Tanzania Startup Association (TSA) is calling for the establishment of a Tanzania Venture Capital Fund through a public-private partnership (PPP) model and the urgent establishment of a Tanzania Startup Policy.

The two main issues were addressed by TSA after a state visit to the Republic of India from October 8 to 10, 2023, led by President of the Republic of Tanzania Samia Suluhu Hassan. TSA and 10 other startup leaders were among the delegates.

Speaking during a closed session between businesses and government (B2G), TSA board member Jumanne Mtambalike called for the urgent establishment of the Tanzania Startup Policy and the Tanzania Venture Capital Fund through a public-private partnership (PPP) model.

"The policy will provide a structured framework for startups to flourish, ensuring their protection and support, and the innovative approach of fund venture capital aims to unlock funds and reduce risks for local startups, ultimately attracting regional and global investors to the Tanzanian startup ecosystem," said Mtambalike, who is also the CEO of Sahara Venture Startup.

On August 14, 2023, Minister for Information, Communication, and Information Technology Nape Nnauye said his ministry is finalizing the establishment of a Startup Policy that will oversee all startup issues, noting that the process will end before the end of 2023.

The India visit

TSA CEO Zahoro Muhaji said the forum provided a dynamic platform for government officials, businesses, and innovators from Tanzania and India to converge, collaborate, and forge partnerships that hold the potential to transform into meaningful economic ties.

"It is so refreshing to see startups getting a seat at such high-level engagements," said Muhaji, who noted that among other activities that happened were learning, knowledge sharing, and partnership dissections.

Managing Director of Anuflo Industries Limited, Flora Njelekela, noted that “I have worked with manufacturers from India before, and this trip has enabled me to make many more connections. I see possibilities for growing my startup from the insight gained and all the connections made”.

Other startups that participated are Mrembo Naturals, Speqtron Solutions, Wefarmtz, Beem, Hashtech Tanzania, Taifa Technology Hub, and Magilatech Global, who are the main funders.

These startups are in different subsectors and all have aspects of innovation and technology in their businesses. Together with TSA officials, they represented over 700 startups from Tanzania.

The Tanzania Startup Association (TSA) is calling for the establishment of a Tanzania Venture Capital Fund through a public-private partnership (PPP) model and the urgent establishment of a Tanzania Startup Policy.

This call comes after a state visit to the Republic of India from October 8 to 10, 2023, led by President of the Republic of Tanzania Samia Suluhu Hassan. TSA and 10 other startup leaders were among the delegates.

The TSA believes that these two initiatives would help to create a more supportive environment for startups to thrive in Tanzania.