FUNGUO programme expands funding to Sh6.5bn for high-potential startups

The aim is to help them scale their solutions, create decent jobs, and accelerate progress towards achieving the Sustainable Development Goals (SDGs).

Implemented by UNDP Tanzania and funded by the European Union (EU), the Government of Finland, and the UK Government through the Foreign, Commonwealth and Development Office (FCDO), FUNGUO focuses on “investing in innovation for a prosperous Tanzania.”

The programme seeks to nurture a vibrant ecosystem for impact-driven entrepreneurs by addressing barriers to innovation, finance, and business growth.

By de-risking startups and building their capacity to attract follow-on investment, FUNGUO empowers entrepreneurs—particularly women and youth—to scale their ventures and contribute to inclusive economic transformation.

Deputy Executive Secretary for Trade and Innovation at the National Planning Commission, Dr Blandina Kilama, commended FUNGUO’s role in advancing national development priorities.

“We recognise that government cannot create every job or solve every problem. But we can create an enabling environment where innovators and entrepreneurs thrive. That is our commitment,” she said.

“We are aligning our policies with Vision 2050 to prioritise innovation and entrepreneurship in national planning frameworks.

The government also aims to improve the ease of doing business so that starting and scaling a business in Tanzania becomes simpler, faster, and less expensive.

The new Crowdfunding Guidelines are one such example—we need more enabling policies like this.”

Head of Cooperation at the EU Delegation to Tanzania, Mr Marc Stalmans, said Tanzania’s growth is increasingly driven by the dynamism of its private sector.

“The European Union firmly believes that sustainable development comes from the ingenuity and initiative of entrepreneurs,” he said.

“Under the Global Gateway, we are investing in people and ideas that are shaping Tanzania’s economic transformation.

Through FUNGUO, we have proudly supported startups that are turning innovation into inclusive growth and real opportunities for communities.”

Development Director at the British High Commission, Ms Anna Wilson, emphasised the UK’s focus on inclusive growth and private sector empowerment.

“Supporting innovation and entrepreneurship is key to building a stronger, more resilient Tanzanian economy. The UK is proud to be part of the FUNGUO partnership that nurtures startups with the potential to transform communities and create lasting impact,” she said.

Head of Cooperation at the Embassy of Finland, Ms Sanna-Liisa Taivalmaa, highlighted her country’s long-standing partnership with Tanzania in promoting innovation and sustainable development.

“Finland’s cooperation in innovation is rooted in our belief that local ideas can solve both local and global challenges,” she said. “Through FUNGUO, we are supporting the Green Catalyst Initiative, which continues to be a strong platform for empowering women and youth entrepreneurs—especially within the forestry value chain.”

UNDP Tanzania Deputy Resident Representative Mr John Rutere said catalytic investments were key to unlocking Tanzania’s innovation potential.

“Investing in innovation is investing in Tanzania’s future,” he said. “Through FUNGUO, UNDP is creating opportunities for entrepreneurs to design sustainable solutions that address local challenges, create jobs, and drive inclusive prosperity.”

Alongside unveiling a new cohort of investees—bringing the total number of startups supported under FUNGUO to 74—UNDP launched a new study titled Catalysts for Growth: A Landscape Study of Entrepreneur Support Organisations in Tanzania, developed in collaboration with Deloitte East Africa.

The event also featured the launch of a special FUNGUO edition of Atoms & Bits magazine, which showcases stories of innovation from across the ecosystem.

Through initiatives such as the Youth Ignite student founders fellowship and the Green Catalyst Initiative, FUNGUO continues to support entrepreneurs across multiple sectors, building a resilient innovation ecosystem where Tanzanian startups can thrive, scale, and contribute to sustainable prosperity.