FUNGUO expands investment in Tanzanian startups to Sh6.5 billion
Deputy Executive Secretary – Trade and Innovation at the National Planning Commission, Dr. Blandina Kilama, speaks during the unveiling ceremony of new investees under the FUNGUO Innovation Programme
The new funding will support 13 high-potential startups across the country, helping them scale up their solutions, create decent jobs, and advance progress toward the Sustainable Development Goals (SDGs).
Dar es Salaam. Tanzania’s innovation ecosystem has received a major boost after the FUNGUO Innovation Programme expanded its investment in local startups and micro, small and medium enterprises (MSMEs) to Sh6.5 billion, strengthening efforts to build a vibrant entrepreneurship landscape.
The new funding will support 13 high-potential startups across the country, helping them scale up their solutions, create decent jobs, and advance progress toward the Sustainable Development Goals (SDGs).
FUNGUO, initiated and implemented by UNDP Tanzania with support from the European Union (EU), the Government of Finland, and the UK’s Foreign, Commonwealth and Development Office (FCDO), focuses on “Investing in Innovation for a Prosperous Tanzania.”
The programme provides catalytic funding and capacity building to impact-driven entrepreneurs—especially women and youth—by helping them overcome barriers to finance and growth.
Speaking at the launch event in Dar es Salaam, Dr. Blandina Kilama, Deputy Executive Secretary for Trade and Innovation at the National Planning Commission, commended FUNGUO’s role in supporting the government’s development agenda.
“The government cannot create every job or solve every problem, but it can create an enabling environment where innovators and entrepreneurs thrive,” she said. “We are aligning our policies with Vision 2050 to prioritize innovation and entrepreneurship, and initiatives like the new Crowdfunding Guidelines show our commitment to improving the ease of doing business.”
EU Head of Cooperation, Mr. Marc Stalmans, underscored the importance of private-sector dynamism in Tanzania’s growth trajectory.
“Sustainable development comes from the ingenuity of entrepreneurs,” he said. “Through FUNGUO and under the Global Gateway, we are investing in people and ideas shaping Tanzania’s economic transformation.”
Ms. Anna Wilson, Development Director at the British High Commission, highlighted the UK’s focus on inclusive growth.
“Supporting innovation and entrepreneurship is key to building a stronger, more resilient Tanzanian economy. The UK is proud to partner with FUNGUO in nurturing startups that are transforming communities,” she said.
Ms. Sanna-Liisa Taivalmaa, Head of Cooperation at the Embassy of Finland, noted Finland’s long-standing support for innovation and sustainable development in Tanzania.
“Through FUNGUO, we are supporting the #GreenCatalyst Initiative, empowering women and youth entrepreneurs who are shaping the future of innovation within the forestry value chain,” she said.
UNDP Tanzania’s Deputy Resident Representative, Mr. John Rutere, emphasized that investing in innovation is key to unlocking Tanzania’s potential.
“Through FUNGUO, UNDP is creating opportunities for entrepreneurs to design sustainable solutions that respond to local challenges, create jobs, and contribute to a more inclusive and prosperous future,” he said.
The event also unveiled a new cohort of investees, bringing the total number of startups supported under FUNGUO to 74. In addition, UNDP launched a study titled “Catalysts for Growth: A Landscape Study of Entrepreneur Support Organizations in Tanzania”, developed in collaboration with Deloitte East Africa. A special FUNGUO edition of Atoms & Bits magazine, showcasing innovation stories from across the ecosystem, was also released.
