FUNGUO, in collaboration with CRDB Bank’s iMBEJU initiative, announced on Tuesday the selection of 18 innovative Tanzanian startups for its third cohort. This initiative reflects a commitment to empowering local entrepreneurs and fostering economic growth.
FUNGUO, founded by the European Union, aims to provide crucial funding and support to startups that tackle pressing societal issues.
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A competitive selection process
The announcement followed a competitive application process, with over 400 submissions across Tanzania.
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The selected startups will receive a total funding pool of TZS 1.8 billion, which includes TZS 1.45 billion from FUNGUO’s Catalytic Grants and TZS 355 million in soft loans from iMBEJU.
This funding is designed to help startups scale their operations and create jobs, particularly for youth and women-led businesses, as 40 per cent of the funds are earmarked for women entrepreneurs.
Ambassador Christine Grau, the EU Head of Delegation, emphasised the significance of innovation in driving economic transformation: “The European Union is proud to support Tanzanian startups with catalytic funding, reinforcing the pivotal role of innovation in driving economic transformation”.
UNDP Resident Representative Shigeki Komatsubara echoed this sentiment, highlighting that “the youth of Tanzania are a vital force for change.”
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Impact on Tanzania’s Startup Ecosystem
The selected startups span various sectors, including agriculture, energy, healthcare, and financial services. They are characterised by their technology-driven solutions that aim to address societal challenges while promoting sustainable development goals (SDGs).
FUNGUO’s previous cohorts have raised over TZS 15.5 billion in additional funding and created more than 4,000 jobs, showcasing the initiative’s impact on the Tanzanian economy.
Hon. Jerry Silaa, Minister of Information ICT & Communication, remarked during the unveiling event that “innovation is the backbone of our nation’s progress,” underscoring the government’s commitment to supporting initiatives that empower local entrepreneurs.
The FUNGUO program provides financial support and tailored technical assistance to help these startups thrive in a competitive landscape.