What Tanzania’s ICT startup labelling framework means

“The time has come to move from identifying startups to systematically empowering them,” the DG said. “This labelling framework will accelerate the journey from innovation to commercialisation, and ensure that no promising Tanzanian solution is left behind.”

The ICT Commission, established under Government Notice No. 532 of November 2015, is mandated to promote ICT development, attract investment, build skills and coordinate strategic digital infrastructure projects.

Over the past five years, Tanzania has witnessed a surge in youth-led innovation across finance, agriculture, health, education, tourism, transport and trade.

According to ICTC data, by December 2025 more than 95 innovation hubs had been established nationwide, with over 76 percent focused on ICT-based solutions.

The Commission’s startup database had registered more than 400 ICT startups by the end of 2025. Of these, 161 met criteria to enter various incubation and acceleration programmes.

Yet, as Dr Mwasaga acknowledged, this was only a fraction of startups operating across the country.

“The registration was free and helped us understand the needs of startups, from early-stage innovators to those ready for market exit,” he said. “But we realised we needed a more refined system that aligns with our national development ambitions.”

Under the new framework, startups will be classified into three categories—Silver, Gold and Tanzanite—based on their stage of growth.

Silver are startups that have completed product development and are beginning early commercial trials, Gold, startups with active customers and clear commercial traction, while Tanzanite, are those with high-growth startups seeking domestic and international business partnerships and ready for scale.

The director explained that each category will come with defined criteria and specific benefits, including improved access to investment incentives, public procurement opportunities, regulatory fee relief and targeted capacity-building.

“The labelling will build trust among investors, regulators and development partners,” he said. “It will also make it easier for startups to test products in the market and enter into commercial agreements.”

The model draws lessons from countries such as Estonia, India, Algeria and Tunisia, nations that have leveraged structured startup recognition to boost innovation ecosystems.

Aligning with Dira 2050

The move is firmly anchored in Tanzania’s Development Vision 2050. One of its five key drivers is digital transformation, with youth entrepreneurship and sustainable employment positioned at the heart of economic growth.

Experts believe the move is timely. A digital economy researcher at the University of Dar es Salaam, Mr Mussa Mkwizu, said the labelling initiative signals policy maturity.

“For years, Tanzania has invested in infrastructure, fibre backbone expansion, mobile penetration and digital public services,” he said. “What we are seeing now is the institutionalisation of innovation. That is how you build a sustainable digital economy.”

Tanzania’s National ICT Broadband Backbone now spans thousands of kilometres, linking all regions and connecting to neighbouring countries. Mobile penetration exceeds 90 percent, while mobile money transactions continue to rank among the highest in Sub-Saharan Africa.

Regulatory sandboxes introduced by the Tanzania Communications Regulatory Authority (TCRA) and the Bank of Tanzania (BoT) have further enabled fintech and telecom innovation to be tested in controlled environments without full licensing burdens.

Plans are underway to extend similar frameworks to insurance and capital markets.

For innovators, the new system could ease long-standing barriers, especially access to capital and markets.

Co-founder of an agritech startup operating in Morogoro, Ms Judith Rwegasira, said formal recognition is critical when engaging investors.

“Investors always ask about credibility and regulatory alignment,” she said. “If the ICT Commission validates our stage of growth, it reduces due diligence friction and increases confidence.”

Financial analysts argue that structured startup databases also improve data visibility, something international investors often cite as a gap in emerging markets.

According to Partech Africa reports, African tech startups have attracted billions of dollars in recent years, but East Africa’s share remains concentrated in a few markets. Analysts believe better policy clarity could help Tanzania capture a larger portion of regional tech capital.

Beyond domestic impact, the ICTC plans to publish updated lists of labelled startups every three months, promoting them in bilateral and multilateral engagements and major trade forums.