Tanzania has entered into a partnership with the Japan International Cooperation Agency (JICA) to enhance the country’s startup ecosystem.
Tanzania, East Africa’s third-largest economy, initiated ‘Project for Startup Ecosystem Enhancement in the Eastern African region’ in July 2023 which informs the deal with Japan. The deal was signed in September 2024 by the country’s ICT commission and slated to run from 2025 through 2028.
“We are excited about today’s agreement and expect the project to deliver significant benefits and promote efficiency in the startup ecosystem in the country,” said Tanzania’s Dr Nkundwe Masaga, who is the ICT Commission Director General.
The project, scheduled to launch in 2025 and run for three years, will focus on assisting the ICT commission in creating a comprehensive master plan. The master plan will outline strategies for:
- Fostering innovative startups
- Establishing a supportive growth ecosystem, and
- Building capacity within the startup community
Officials from the ICT Commission, Director General and Jica pose in a joint picture after signing an agreement aimed at enhancing the country’s startup ecosystem to significantly support small innovative businesses in Tanzania.In addition, the initiative will manage the execution of pilot projects aimed at supporting innovation, along with capacity-building programs for key stakeholders in the startup ecosystem.
Tanzania is one of the biggest countries for startup innovation in Africa, and was among the top countries for startup venture capital funding in H1 2024 according to Africa, the Big Deal.
Startups in the country reportedly raised $9 million, the third largest haul in the region after Kenya ($244 million) and Uganda ($19 million).
Tanzania however still lags behind heavyweights such as Nigeria ($172 million), Kenya ($244 million) South Africa ($85 million) and Egypt ($101 million).
The country is home to startups like Nala, Ramani, and Tembo and will also be seeking to introduce legal backing for startups as many African countries have done.
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African countries with a startup Act include:
- Tunisia
- Senegal
- Ghana
- Mali
- Rwanda
- DRC
- Kenya
- Nigeria
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Nigeria becomes the third country to have a Startup Act in Africa after Senegal🇸🇳 and Tunisia🇹🇳, while Kenya🇰🇪 and Ethiopia🇪🇹 are also pursuing their own.https://t.co/wt5D6vJ2cW
— BitKE (@BitcoinKE) November 2, 2022
In a landmark move to support financial technology innovation, the Bank of Tanzania recently launched its Fintech Regulatory Sandbox, a significant development for the country’s startup ecosystem. This initiative is designed to provide fintech startups with a more flexible and less restrictive environment to test their products and navigate market entry with reduced regulatory burdens.
🇹🇿LAUNCH | Bank of Tanzania Launches the Fintech Regulatory Sandbox
The fintech sector, which constitutes 8.83% of the country’s startups and creates approximately 9,888 jobs, will benefit from the sandbox, potentially boosting innovation and growth in this important sector… pic.twitter.com/5T97ZvKuJo
— BitKE (@BitcoinKE) September 5, 2024
The Tanzanian fintech sector constitutes 8.83% of the country’s startups and creates approximately 9,888 jobs as of September 2024.
JICA, which is already a major startup investor in Africa through the Verrod-Kepple Africa Ventures, will help the ICT commission to assess current policies and legislation related to startups and offer recommendations for improvement, with the goal of enhancing support for entrepreneurs.
Verod-Kepple Africa Ventures, a Pan-African VC Fund for Emerging Growth Stage Companies, Raises $43 Million
VKAV invests in scalable, tech-enabled, post-revenue businesses that address difficult challenges across various industries in Africahttps://t.co/zSu7WESviF
— BitKE (@BitcoinKE) March 27, 2023
Mr. Mukai Naoto, the Senior Assistant Director for the Private Sector Development Group in the Economic Development Department at JICA in Tokyo, reiterated the agency’s dedication to collaborating with the Tanzanian government.
“JICA is committed to collaborating with the Tanzanian government to address startup ecosystem challenges and ensure that the project yields results that benefit the country and its people,” said Mr Mukai.
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