BUSINESS TECHNOLOGY MEDIA FOR AFRICA

Presidential push ignites hope in Tanzania's start-up ecosystem

By Phathisani Moyo, Senior contributor
Johannesburg, 01 Jul 2025
President Samia Suluhu Hassan pledged to strengthen support for digital entrepreneurs and early-stage enterprises.
President Samia Suluhu Hassan pledged to strengthen support for digital entrepreneurs and early-stage enterprises.

Tanzania’s start-ups and innovators have received a major boost following President Samia Suluhu Hassan’s pledge to strengthen support for digital entrepreneurs and early-stage enterprises.

In her June 27 address to dissolve Parliament, president Hassan reaffirmed her administration’s commitment to accelerating the growth of the digital economy through targeted support for youth-led innovation, particularly in the ICT sector.

“Among the important stakeholders in innovation as we build a digital economy are emerging companies, commonly known as startups, particularly in ICT,” said Hassan.

She emphasised that startups are no longer peripheral players but central to Tanzania’s long-term development agenda.

The president announced a series of groundbreaking initiatives, including the introduction of a national startup policy aimed at creating a more enabling environment for entrepreneurs. 

She also confirmed the continuation of over 460 innovation projects under the National Science, Technology and Innovation Competitions.

Most notably, President Hassan unveiled the Mama Samia Innovation Fund, which will provide low-interest loans to young innovators to bridge a longstanding financing gap for early-stage ventures. 

“This fund will empower our youth to transform their ideas into impactful and sustainable businesses,” she said.

According to The Citizen newspaper of Tanzania, the announcement has been widely welcomed by players in the country’s innovation ecosystem.

“This is the kind of decisive leadership we’ve been hoping for. Access to affordable capital and clear policy direction are game-changers for startups like ours,” said Grace Mtaki, founder of Dar-based edtech startup Njia Smart.

Innovation ecosystem advocate and tech hub manager John Malisa also told the newspaper that the government’s pledged funding mechanism could serve as a key catalyst for the growth of Tanzania’s ICT sector.

“A national startup policy backed by a funding mechanism like the Mama Samia Fund signals that Tanzania is ready to compete on the continental innovation stage,” he said.

With these initiatives, President Hassan stressed that innovation is now at the centre of Tanzania’s economic transformation efforts, offering young entrepreneurs renewed hope and a clearer path to success.

“I now want to see the government supporting startups so that the youth can use their skills to improve productivity in various economic and social sectors. This digital economy push should mark a turning point for the country’s next generation of tech leaders,” said Hassan.

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