Tanzania plans $50 million fund for start-ups
By the AFREEQUE newsroom, based on Tanzaniainvest
The Tanzania Startup Association proposes a $50 million venture capital fund intended to mobilise a further $180 million for start-ups and small businesses. The scheme includes an initial public contribution of $7.5 million and is expected to support 18 local and regional funds, according to the association.
The Tanzania Startup Association (TSA) presented plans for a $50 million venture capital fund for start-ups and small and medium-sized enterprises in Dar es Salaam on 20 October. The scheme also aims to mobilise $180 million in private co-investment, according to Tanzaniainvest.
The fund targets businesses that have moved beyond angel investment but are not yet mature enough to obtain conventional bank loans, TSA operations and programmes lead Praygod Japhet explained. The association aims to secure $7.5 million from the government, or 15% of the initial capital. The rest is expected to come from private institutional investors, pension funds and development finance institutions.
The initial endowment is intended to anchor 18 local and regional venture capital funds, which would together seek the additional $180 million. The project is one of four priorities set by the Capital Markets and Securities Authority, Tanzania’s financial markets regulator, alongside tax and regulatory reforms, training fund managers and developing businesses.
The project was presented at Tanzania Startup Week 2026, held from 19 to 23 October by the TSA, the Ministry of Finance, the markets authority and the Ministry of Industry and Trade. Finance Minister Khamis Mussa Omar said the economy grew by 5.6% in 2024 and 5.9% in 2025, with a target of 6.3% for 2026. Inflation remained below 5%, while lending to the private sector rose 33% year on year at the end of August. Omar also noted that industry, which accounts for 8% of the economy, had not yet substantially benefited from the increase in private credit.
Summary produced with the help of artificial intelligence tools, under AFREEQUE’s editorial responsibility.
