Tanzania strengthens startup investment landscape after learning missions to India and Ghana

Dar es Salaam. Tanzania is intensifying its efforts to build a vibrant investment ecosystem for startups and small businesses, following strategic learning missions to India and Ghana earlier this month. The move signals a significant shift in the country’s economic strategy, placing greater emphasis on unlocking venture capital and private equity to fuel homegrown innovation.

The visits—conducted between May 5 and 15, 2025—brought together senior officials from the Capital Markets and Securities Authority (CMSA), the Ministry of Finance, the Tanzania Revenue Authority (TRA), and the Tanzania Startup Association (TSA). The high-level delegations were tasked with studying best practices in startup financing and capital market development.

According to a statement released by TSA on May 23, the missions were designed to learn from nations that have successfully fostered dynamic startup ecosystems. The ultimate goal: to shape reforms that attract long-term investment and promote entrepreneurship in Tanzania.

“These missions gave us powerful insights into how to build a thriving investment environment. India’s advanced systems and Ghana’s practical, partnership-driven approaches offer strong foundations for Tanzania’s roadmap,” said Mr Praygod Nanyaro, TSA’s Head of Programmes and Operations, who represented the startup community during both visits.

What Tanzania learned abroad

In India, the delegation held in-depth engagements with the Securities and Exchange Board of India (SEBI) and the Small Industries Development Bank of India (SIDBI) from May 5 to 8. Discussions focused on India’s well-regulated Alternative Investment Funds (AIF) framework and SIDBI’s Fund of Funds for Startups—a government-backed initiative that catalyses private investment using public capital.

The delegation then travelled to Ghana from May 12 to 15, where they met with the Securities and Exchange Commission, the Ghana Stock Exchange, and the Venture Capital Trust Fund. There, the focus shifted to how Ghana mobilised pension funds and public-private partnerships to support local venture capital firms and increase funding access for early-stage businesses.

Policy reforms on the horizon

Insights gathered from the learning missions to India and Ghana are expected to guide a series of key policy reforms in Tanzania aimed at strengthening the startup investment landscape. Among the top priorities is the finalisation of the country’s long-awaited Venture Capital and Private Equity Regulations, which will establish a clear legal framework for alternative investment structures.

Another significant development will be the rollout of the National Startup Policy (2025–2029), a comprehensive roadmap to support early-stage businesses through regulatory incentives, infrastructure, and access to capital.

Perhaps most notably, Tanzania plans to design and operationalise the Tanzania Venture Capital Fund (TVCF)—a flagship financing mechanism inspired by India’s successful Fund of Funds model.

The TVCF will use government seed capital to attract private investment into startups, while also helping to build domestic fund management expertise and institutional capacity. This blended finance approach is expected to unlock new growth opportunities for Tanzanian entrepreneurs and investors alike.

From vision to action

A senior government official involved in the mission noted that the time for reform is now.

“Developing a robust venture capital and private equity ecosystem is no longer optional—it’s essential to Tanzania’s economic transformation, as outlined in our Vision 2050,” the official said.

The official added that the collaboration between CMSA, the Ministry of Finance, TRA, and TSA—combined with lessons from global success stories—positions Tanzania to accelerate the flow of capital into innovation and entrepreneurship.

“This is about more than just finance. It’s about creating an ecosystem that empowers Tanzanian founders, supports local job creation, and builds an economy driven by ideas, technology, and private-sector dynamism.”

As Tanzania moves forward, the momentum built through these missions underscores a growing recognition that nurturing startups requires more than good intentions—it demands institutional support, targeted capital, and forward-looking policies.

If implemented effectively, the outcomes could reshape the country’s investment landscape and unlock the potential of a new generation of Tanzanian entrepreneurs.