Joseph Isangura
Tanzania’s startup ecosystem is growing fast, but one sector is getting the lion’s share of investmentfintech.
In 2024, the country raised $53 million in startup funding, and a staggering 75% of that went to financial technology companies. This mirrors a wider trend across Africa, where fintech has drawn nearly half of the $2.2 billion raised across the continent.
The success of fintech is undeniable. These companies are addressing a huge gap in financial inclusion, offering services like mobile banking, microloans, and digital payments to millions who were previously unbanked. Their ability to scale quickly and expand beyond borders has made them attractive to investors.
But this dominance has created an imbalance. Other promising sectors—such as agritech, health tech, and renewable energy—are struggling to secure funding, despite tackling some of Tanzania’s biggest challenges. Many startups in these industries face difficulties in attracting investors, slowing down their potential impact.
To bridge this gap, the government has taken steps to create a more balanced startup environment. One major effort is the upcoming Startup Policy, expected to be finalized by June 2025. This policy will define legal and regulatory frameworks, making it easier for startups to access capital, navigate regulations, and benefit from incentives.
Additionally, the government is set to launch the Tanzania Venture Capital Fund, which will provide financial support to startups beyond fintech. Sectors like agritech, healthcare, clean energy, and manufacturing will have a better chance of receiving investment through this initiative. The fund is expected to start operating by mid-2025, combining public and private funding sources to support early-stage businesses.
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Regulatory changes are also in motion. The Capital Markets and Securities Authority (CMSA) is working on reforms that will allow more venture capital firms to register locally, giving startups easier access to investment. At the same time, adjustments to tax policies—such as capital gains tax—aim to create a more favorable environment for investors and entrepreneurs alike.
Another key focus is infrastructure. The government plans to establish Startup Innovation Hubs in eight regions, providing office spaces, mentorship, and networking opportunities for emerging businesses. These hubs are expected to foster innovation beyond major cities, ensuring that startups across the country have the resources they need to grow.
While fintech’s rapid rise has been impressive, the challenge now is ensuring that other industries get the attention they deserve. With the right policies, funding opportunities, and infrastructure in place, Tanzania can create a more diverse and inclusive startup ecosystem—one where all sectors have a fair shot at success.
