Josephine Christopher is a senior business journalist for The Citizen and Mwananchi newspapers
Mwananchi Communications Limitted
Dar es Salaam. The local startup ecosystem is attracting record levels of capital, but entrepreneurs have been urged to focus on solving real problems and building viable businesses rather than chasing funding.
The advice comes as Tanzania moves towards what could be its first $100 million year in startup funding, after local startups raised $52 million in the first six months of 2026, almost matching the $53 million secured throughout 2024, according to Africa: The Big Deal.
The latest figures put Tanzania among Africa’s five largest startup funding destinations in the first half of the year, raising the prospect of surpassing the $100 million mark if startups secure another $48 million before December.
However, speaking at Tanzania Innovation Week 2026, innovation and business experts said the bigger challenge was ensuring entrepreneurs could turn ideas into commercially viable businesses and use investment effectively.
Team Director at Mbarali Clean Energy Solution Dr Noni Tindigwe said entrepreneurs should start by identifying problems in their communities and finding solutions using locally available resources.
He is part of the team behind Bagazi Gauze, an eco-friendly wound dressing made from banana plant fibres. The innovation turns agricultural waste into a locally produced alternative to imported gauze.
“The idea is to make quality healthcare more accessible by using what we already have locally,” Dr Tindigwe said.
He said the approach also draws on traditional methods used in parts of Tanzania’s Lake Zone, demonstrating how local knowledge and resources can underpin commercial innovations.
Managing Director at Sahara Accelerator Mr Adam Mbyallu said successful entrepreneurs must remain committed to their ideas while maintaining a clear understanding of the problem they are solving.
“People who succeed in startups are dedicated and have confidence in their startups, but they also need to remain focused on the problem they are solving,” he said. He also stressed the importance of building teams with complementary skills, including marketing and other areas founders may lack.
Business Development Manager at DTBi Mr Elia Kinshaga said while access to finance remained a challenge, entrepreneurs needed to understand how much capital they required and how it would be used.
“The big challenge is securing funds, but innovators need to know what they need, rather than what they want,” he said. Director of Studio 19 Limited Mr Brian Mnyampi challenged the perception that Tanzania lacked investors.
“There is a lot of money, people and institutions that are ready to fund,” he said, adding that entrepreneurs must also know when they are ready to receive investment. His advice was simple: “Go fast, go narrow.”
He urged startups to focus on a specific problem and customer base, build traction and expand from a stronger position rather than trying to serve multiple markets prematurely.
Director at Ifakara Innovation Hub Mr Masoud Mnonji highlighted another challenge: the gap between technical expertise and business leadership.
“You can be the best in technology but make a bad CEO,” he said, stressing the need for founders to understand both science and business.
The discussion also raised questions about whether investor return expectations are realistic for early-stage businesses, particularly those operating in rural markets.
As funding reaches new levels, the experts said the success of Tanzania’s innovation ecosystem should ultimately be measured not by how much money startups raise, but by the problems they solve, the businesses they build and the value they create.
