Stakeholders push for clearer legal framework in draft startup policy

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  • Startup founders also emphasised the need for the policy to strengthen collaboration between startups and public institutions, particularly through government procurement and partnerships.

Dar es Salaam. Stakeholders in Tanzania’s startup ecosystem have called for a clearer legal and regulatory framework to support innovation-driven enterprises, as the country prepares to adopt its first national startup policy.

The call was made during a policy hackathon organised by the Tanzania Startup Association (TSA) in Dar es Salaam, where industry players reviewed the draft National Startup Policy and proposed recommendations to improve the document before its adoption.

For years, startups in Tanzania have operated without formal legal recognition, functioning under regulatory frameworks designed for conventional businesses. The situation has limited their ability to access financing, regulatory incentives and broader market opportunities, according to operators.

The Ministry of Communications and Information Technology, is currently developing the policy to provide a comprehensive framework governing how startups are established, operate, scale and exit the market.

The ministry has requested feedback from ecosystem stakeholders to ensure the policy reflects the realities facing entrepreneurs and technology innovators.

Speaking during the hackathon, the Chief Executive Officer of the Tanzania Startup Association, Zahoro Muhaji, said the policy represents an important milestone for Tanzania’s innovation ecosystem.

“For the first time, Tanzania has an opportunity to establish a dedicated framework that recognises startups as a unique category of businesses. This policy is crucial for unlocking investment, enabling innovation and positioning Tanzanian entrepreneurs to compete globally,” he said.

Legal experts participating in the session noted that one of the biggest gaps in the current ecosystem is the absence of a formal legal definition of a startup.

Kheri Mbiro, senior partner at Breakthrough Attorneys, said establishing such a definition would help create a more effective regulatory environment for innovation and entrepreneurship.

“Currently, Tanzania does not have a legal definition of what constitutes a startup. Without that clarity, it becomes difficult to design targeted regulations, incentives or support mechanisms,” he said.

He added that the proposed policy would help formally recognise startups within the country’s legal framework while creating regulatory pathways that support innovation and accountability.

Startup founders also emphasised the need for the policy to strengthen collaboration between startups and public institutions, particularly through government procurement and partnerships.

The Chief Executive Officer of agritech firm Kilimo Freshi, Baraka Jeremiah, said improved market access will be essential for startups seeking to scale their innovations.

“For startups, access to markets is just as important as access to capital. The policy should create pathways for startups to work with government through procurement and public–private partnerships,” he said.

He added that allowing startups to pilot and scale innovations in collaboration with government institutions would accelerate both technological development and national economic growth.

Recommendations generated during the hackathon will be consolidated by the Tanzania Startup Association and submitted to the Ministry of Communications and Information Technology as part of the ongoing national consultation process, the association said.