New lease of life for startup founders to scale innovations

DAR ES SALAAM: THE launch of an Angel investor network in the country is set to significantly boost the ambitions of startup founders by linking them with potential investors and resources to scale their innovations.

Speaking during the launch on Monday evening in Dar es Salaam, the Managing Partner of Rhapta Angel Investors Network, Mr Musa Kamata, said the initiative is designed to bring together Angel investors across the country and help them identify promising investment opportunities.

“The goal is to connect individuals interested in supporting startups, not just financially, but also through mentorship and strategic introductions to other investors,” he said.

According to the African Business Angel Network (ABAN), 22.5 million US dollars (about 56.2bn/-) has already been mobilised to support 408 innovative early-stage ventures across the continent as of 2025. The network aims to raise 80 million US dollars (about 199.7bn/-) in early-stage investments by 2027.

Mr Kamata said that while many potential investors exist both locally and internationally, a major challenge remains: lack of awareness about available opportunities. Rhapta Angels aims to bridge that gap.

“There’s a significant financing gap for startups in this country. Traditional financial institutions often hesitate to fund startups due to their reliance on untested business models,” he noted.

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UNDP Funguo Programme Manager, Mr Joseph Manirakiza said that while many startups in Tanzania have high potential for impact and growth, they are often overlooked by banks.

“There’s what we call the ‘missing middle’ startups that are too advanced for grants but too risky for bank loans. This network will not only attract more early-stage investors but also offer them new avenues to deploy their capital,” he said.

He added that while startups may not always get it right due to their experimental nature, integrity and long-term vision are crucial for attracting meaningful investment.

Sahara Ventures CEO, Mr Jumanne Mtambalike shared his personal experience as an Angel investor, revealing that he has invested in eight startups over the past four years, with only one currently delivering returns.

“Every stage of the journey brings excitement. Even when investments don’t yield returns, there’s valuable learning about new opportunities, sectors and market needs,” he said.

Mr Mtambalike welcomed the formation of the Rhapta Angel Investors Network, highlighting its importance to the broader startup ecosystem.

“This is about building an ecosystem. Founders can’t realise their dreams without such support structures. There’s plenty of capital ready to be invested across the continent, but most investors don’t know where or how to begin,” he added.

Rhapta positions itself as a community-first network—where founders invest in fellow founders. Its investment model includes revenue-sharing and profit-sharing agreements, which align investor returns with a startup’s performance, while giving founders more autonomy to execute their vision.

The network also introduces “lead angels,” who act as co-pilots with portfolio startups, alongside an in-house mentorship programme designed to support companies with their post-investment challenges and growth.