Samia’s digital push a crucial boost for startup ecosystem

Dar es Salaam. Tanzania’s growing startup ecosystem has received a major boost after President Samia Suluhu Hassan reasserted her government’s commitment to supporting young innovators and building a digital economy powered by technology-driven enterprises.

Delivering her address to dissolve Parliament on June 27, President Hassan outlined the government's strategy to promote startups, especially in the ICT sector, describing them as key stakeholders in building a modern, innovation-led economy.

"Among the important stakeholders in innovation as we build a digital economy are emerging companies, commonly known as startups—particularly in ICT. During this period, the government has intensified consultations with players in this sector. I now want to see the government supporting startups so that the youth can use their skills to improve productivity in various economic and social sectors,” she said.

To reinforce this commitment, President Hassan announced that the government will formulate a comprehensive startup policy to provide a supportive framework for young enterprises to flourish.

She also highlighted the continuation of 464 innovation projects that emerged from the National Science, Technology and Innovation Competitions, as well as the launch of the Mama Samia Innovation Fund, aimed at offering low-interest loans to innovators to help them establish businesses and bring products to market.

This announcement has been welcomed with optimism by key players in the country’s startup ecosystem, many of whom believe the initiatives could mark a turning point for young entrepreneurs facing funding and policy challenges.

Speaking to The Citizen, yesterday, Head of Programmes and Operations at the Tanzania Startup Association (TSA), Mr Praygod Japhet, says the President’s remarks have been received with great optimism and a sense of validation for the association’s long-standing advocacy.

He describes the recognition of startups—particularly in ICT—as a ‘powerful signal’ of government prioritisation.

“This marks a shift from startups being a niche interest to becoming a national development priority,” he said, noting that the commitment to a comprehensive startup policy is a significant win.

According to him, TSA has been involved in drafting the policy, which is expected to address key barriers such as access to funding, regulatory complexity, and market expansion.

He added that the President’s promise of deeper consultation with innovators shows a move towards more collaborative policy-making.

“It boosts investor confidence, and gives us a clearer seat at the table,” he said.

On the Mama Samia Innovation Fund, Mr Japhet emphasised the need for transparency, fair access, and additional support services like mentorship, training, and market linkages.

“It must go beyond just capital to truly empower young innovators across sectors and regions,” he noted.

TSA, he confirmed, is ready to work closely with the government, calling for formalised partnerships, data-sharing, and co-created programmes.

He said the association remains committed to helping shape Tanzania’s digital future, and believes the country is on the right track.

“With strong political will, an emerging policy framework, increased investments, and cross-sector collaboration, Tanzania is steadily moving toward a sustainable digital economy powered by startups,” he added.

The serial entrepreneur and startup mentor, Michael Nyamwero, described the President’s remarks as timely and encouraging.

“For years, startups have struggled to find their place in the national economic agenda. This clear recognition by the President is not just symbolic—it opens the door for structural support, access to finance, and a shift in how society views innovation and risk-taking,” he said.

For his part, the founder of Tembo Plus, Victor Joseph, said a national startup policy would provide much-needed direction.

“It’s a game changer. A well-crafted policy can guide investment, protect intellectual property, and support startup growth in both urban and rural settings,” he noted.

With similar sentiments, CEO and co-founder of Kilimo Fresh Foods Africa Ltd, Baraka Chijenga, said the President’s focus on youth-led businesses aligns with the growing trend of agritech innovation in Tanzania.

“We need targeted support. Innovation in agriculture is not just about technology—it’s about jobs, food security and economic inclusion. The fund and policy could help scale impact,” he said.

On top of that, CEO of Smart Africa Group, Edwin Bruno, added that the establishment of the Mama Samia Innovation Fund signifies a shift toward trust in homegrown solutions.

“The fact that the fund targets innovators directly is important. It acknowledges that real solutions can emerge from local startups and offers a chance to invest in Tanzanian intellectual capital,” he said.

For her part, co-founder of Plate AI, a health-tech startup that uses artificial intelligence to personalise nutrition and wellness, Janeth Kareen Kilonzo, said the President’s remarks have reignited hope among female founders.

“Women-led startups often face greater barriers in funding and visibility. With a national policy and innovation fund in place, there’s finally a framework that can help level the playing field,” she said.