DSE, TSA to enhance startup capital access

DAR ES SALAAM: THE Dar es Salaam Stock Exchange (DSE) on Tuesday signed a Memorandum of Understanding (MoU) with the Tanzania Startup Association (TSA) to enhance capital access for small and medium enterprises (SMEs) and startups.

DSE Chief Executive Officer, Mr Peter Nalitolela said that the goal of the initiative is to formalise cooperation between the two institutions and establish a framework that supports investors and startup founders in accelerating growth and boosting investment-related economic activities.

“Startups are a catalyst and engine for global economic transformation, but many lack innovative avenues to attract investors quickly due to their earlystage nature,” said Mr Nalitolela.

He added that this partnership will provide vital support to emerging companies by helping them reach more investors through innovative strategies.

The collaboration will also equip startups with essential knowledge and expose them to various market opportunities, including educational programmes focused on capital markets and business growth.

Startups are increasingly playing a visible role in the country’s economic development, driving entrepreneurial activities and innovation. Recognising this, the government has prioritised creating a conducive environment for startups to thrive.

Last year, the government launched Tanzania Startup Point, an annual startup-focused week designed to promote innovation and growth among young and mid-sized enterprises.

In addition, the government has finalised regulations for a regulatory sandbox, which allows innovators to test their solutions in the market under a temporary licence.

Furthermore, in collaboration with TSA, the government is in the final stages of drafting a national Startup Policy, which is expected to be launched by the end of this year.

He added that through DSE initiatives such as the ENDELEZA window, several startups have made significant progress in accessing growth capital. So far, three companies have successfully secured funding.

One of the companies has obtained a loan of approximately 800m/- from a local bank, while another a microfinance institution has attracted a private international investor contributing 10 million US dollars.

TSA’s Chief Executive Officer, Mr Zahoro Muhaji said that the partnership will add great value to Tanzanian startups, which largely rely on alternative financing methods, such as equity sales, to sustain and scale their businesses.

“One of the key challenges startups face in Tanzania is the lack of clear exit options for investors, due to the limited availability of share-sale platforms for startups,” he said.

“Therefore, this partnership is critical as it will create a more structured investment environment by integrating these innovations under the DSE framework.”