Why local corporates are critical for attracting startup investments in Tanzania

According to Managing Partner at Warioba Ventures, Mr Martin Warioba, the real issue lies deeper in how venture ecosystems mature, particularly in frontier markets like Tanzania.

In this exclusive interview with The Citizen’s Josephine Christopher, Mr Warioba argues that Tanzania has an opportunity to change its investment narrative by strengthening the bridge between corporates and startups, while also expanding alternative financing tools beyond equity.

Doing so, he says, could help build a more investable pipeline that attracts not only early-stage capital, but also growth funds already watching the market.

How do you see the Tanzanian startup and early-stage investment market today - opportunities, challenges, and trends? How do you see the Tanzanian startup and early-stage investment market today - opportunities, challenges, and trends?

Tanzania has the fundamentals: a large and growing market, strong SMEs, and rising digital adoption. The biggest opportunities are in sectors where pain is structural - health supply chains, agriculture value chains, trade and logistics, B2B payments, and SME finance.

The challenge is not a shortage of ambition. It’s that we still have a thin “middle layer” that turns innovation into investable businesses: limited structured early capital, limited corporate demand signals, and limited technical assistance that allow startups to scale.

On the positive side, we’re seeing more founders building closer to real economics by focusing on distribution, collections, unit economics, compliance. That’s a healthy shift.

People often point to Kenya. What do you think Kenya has done differently that Tanzania can learn from?

Kenya benefits from ecosystem density where there are more venture networks, more repeated founder wins, and more international capital that feels familiar with the market.

But mostly important, their local corporations play a stronger role in pulling startups into real revenue. When corporate buyers contract startups, integrate them into operations, co-build solutions, and sometimes acquire them, investors see a credible path to scale and exit.

It is now time for Tanzania to fire up its own corporate base: banks, MNOs, logistics firms, FMCG players, manufacturers, and energy companies. If these corporations turn engagement with startups into a structured strategy, capital will follow.

You’ve said corporations should do more. What does meaningful corporate participation look like?

I think of five practical roles corporates can play: first as a customer and procure from startups by turning pilots into contracts; second as a distribution partner to provide channel access through agents, branches, merchants, suppliers.

They can also be capability builder for mentorship, technical expertise, governance coaching, forth as a co-investor to provide strategic tickets alongside local angel networks and local VC funds and lastly as an acquirer for when innovation works, local corporates can provide exit option by buying startup, merging with it, or building a joint venture.

There has to be real intention of turning “innovation” into a predictable pipeline, not just a CSR activity

For Warioba Ventures specifically, how many startups have you invested in and in which sectors?

We have invested in two Tanzanian startups: Dawa Mkononi and Tunzaa, and we are currently working on a third investment right now. We are sector-agnostic, early-stage, tech-enabled startups investors. We pair capital with technical assistance support particularly around technology expertise, governance, partnerships, and readiness for follow-on capital.

Have local angels / corporates co-investing with you helped unlock follow-on foreign capital? Any concrete examples?

Yes. Local participation often de-risks and builds trust to foreign capital. And we are very proud that through our angel network, WV Angels, we have invested with local angels in both our investments.

A concrete example is Dawa Mkononi, where early local capital of about $100,000 and support helped create the confidence and momentum that attracted additional foreign investment of more than $2.5 million in form of equity and debt from Axian Group, Boehringer Ingelheim Social Engagement Fund, Pontem Ventures, Sanofi Impact Fund, Stanford Graduate School of Business Impact Fund, and Villgro Africa.

We have also raised matching impact grant funds from DeveloPPP / KFW program, Daraja Impact Fund and ABAN Catalytic Fund.

This has helped Dawa Mkononi to grow from 14 to 100 employees in the past 3 years, serving over 3,500 customers (pharmacies, clinics and hospitals) and generating revenue of $15.5 million while supplying medicines across all 30 regions in Tanzania.

With Tunzaa, they have just closed a contract with GSM Group, one of the leading conglomerates across East Africa.

The broader principle is that when local stakeholders show up then international investors convert curiosity into conviction. Our biggest upside is that we take risks together and local investors are on the ground to provide more support.

If you could ask Tanzania’s corporate leaders for one thing in 2026, what would it be?

Move from intention to structure. Create an internal “innovation interface” with budget, procurement pathways, KPIs, and leadership accountability. Then switch into an investment mindset by engaging startups as customers and partners.

How will Warioba Ventures use this year especially as you structure WV Tusonge Mbele Fund across Tanzania, Rwanda, Uganda, DRC and Zambia?

We are structuring a $10 million early-stage, tech-based startups regional VC fund that will be domiciled in Rwanda but focusing on investments in Tanzania, Rwanda, Uganda, Democratic Republic of Congo and Zambia.

We are building a governance-first pipeline across these African Great Lakes countries where they have traditionally traded with each other and Tanzania is a gateway through the Indian Ocean. Warioba Ventures will be active by being on the ground, working with founders, and partnering with local corporates to convert pilots into contracts and building sustainable and scalable business

Our approach is regional and we want to collaborate. Trade corridors, health supply chains, agriculture markets, and industrial services don’t stop at borders, and neither should capital networks. We are looking forward to the challenges.