New deal to boost alternative financing for Tanzania’s startups
TSA chief executive officer Mr Zahoro Muhaji (left) and Africapital chief executive officer Mr Burak Buyuksarac (centre) exchange documents after signing an MoU in Dar es Salaam. PHOTO|COURTESY
The deal, formalised on Friday through a Memorandum of Understanding (MoU), is expected to provide alternative funding and structured support for the early-stage firms.
Dar es Salaam. The Tanzania Startup Association (TSA) has signed a three-year partnership agreement with Africapital Investment Holding Limited to expand financing opportunities for local startups struggling to access conventional bank loans.
The deal, formalised on Friday through a Memorandum of Understanding (MoU), is expected to provide alternative funding and structured support for the early-stage firms.
A key feature of the agreement is the joint launch of an incubation programme aimed at identifying high-potential startups within TSA’s network and connecting them with venture capital, private equity and angel investors through the platforms of Africapital which was founded by a seasoned Turkish entrepreneur, Mr Burak Buyuksarac.
TSA chief executive officer Zahoro Muhaji described the partnership as a milestone for Tanzania’s innovation ecosystem, stressing the need for non-traditional funding sources.
“Many startups depend on securing capital, but not the type we are accustomed to. Alternative financing, such as venture capital, private equity and angel investors, is essential. This MoU will help us open those non-traditional markets,” he said.
He noted that the incubation programme would officially be launched during Tanzania Startup Week, one of the region’s leading entrepreneurial events.
“We believe it will be the right platform for such a launch. It is the main event for startups in Tanzania and across East Africa, and it will give us the exposure needed to showcase high-potential firms,” Mr Muhaji said.
Africapital CEO Mr Burak Buyuksarac, echoed his counterpart’s views, underscoring the firm’s commitment to the partnership.
“We are delighted to sign this MoU with TSA. The aim is to collectively roll out an incubation programme and to create alternative financing opportunities, given the challenges startups face in accessing conventional capital,” he said.
He confirmed that the incubation programme will be launched in collaboration with TSA during the upcoming Startup Week.
