Funguo opens its first application window for grant funding

Dar es Salaam. The Funguo Innovation Programme (Funguo) has on Tuesday, 14 launched its first call for proposals with a view to funding targeting Tanzanian impact-driven startups.

Funguo is a programme funded by the European Union, UNDP and the UK government, and implemented by UNDP Tanzania in partnership with UNCDF.

Speaking during the launch, UNDP Resident Representative Ms Christine Musisi said Funguo aims to reduce stumbling blocks and gaps that hinder innovative impact ventures from scaling in three key area innovation financing, innovation service delivery, and innovation enabling environment

She said Funguo seeks to fill the market gap for funding, by supporting startups that may otherwise struggle to find appropriate forms of financing the programme also aims to make investments, which will contribute to de-risking start-ups and enable them to attract funding from other sources, such as banks and early-stage investors.

“The programme is therefore looking for startups that have a clear rationale for why grant financing is needed, and how the catalytic startup funding can help them unlock their potential,” she said.

Under the funding window, up to Sh1.5 billion will be disbursed to successful startups, out of Sh7 billion disbursable over the next three years. Eligible startups need to be impact-driven, legally registered in Tanzania, majority owned by Tanzanians, and have demonstrable market traction.

In addition, eligible applicants will need to prove how innovative they are, their business viability and their potential to scale. Funguo will also evaluate them on their management and governance soundness, as well as their potential contribution to development impact.  Successful applicants will be awarded a grant ranging between Sh50 million and Sh200 million per grantee.

For his part, Tanzania Commission for Science and Technology (Costech) director general Dr Amos Nungu said the government will continue to create a conducive environment for innovators so that they may continue designing simple solutions that will help the community.

Dr Nungu added startups with prospective investors looking for support on financial de-risking through additional early-stage funding will stand a higher chance of being funded, if they meet other selection and eligibility criteria. Women-owned and led impact-driven startups will be given special consideration.