Swiss envoy calls for more capital to bolster SMEs as Tanzania launches the Impact Investment Forum

DODOMA: INVESTORS have been urged to channel more capital towards Tanzania’s high-impact small and medium-sized enterprises (SMEs) to help them scale up operations, create jobs and drive inclusive economic growth.

The call was made during the launch of a three-day second edition of the Tanzania Impact Investment Forum (TIIF) organized by the embassy of Switzerland in Dar es Salaam on Monday.

Speaking at the launching event, the Swiss Ambassador to Tanzania, Nicole Providoli reaffirmed her government’s commitment to supporting Tanzania’s sustainable and inclusive economic development through long-term investments aimed at strengthening small and medium-sized enterprises (SMEs) and startups with high social impact.

“Impact investment remains a key pillar of Switzerland’s development cooperation programme, which seeks to unlock growth opportunities for businesses capable of delivering both economic and social benefits and while Tanzania is home to many innovative entrepreneurs and promising enterprises, limited access to finance continues to hinder their growth,” she said.

She said many businesses struggle to secure both early-stage financing and long-term capital required to scale operations, creating one of the biggest barriers to enterprise development in the country.

“Many enterprises have strong ideas and significant potential, but they lack the capital needed to grow. Access to finance remains one of the major challenges, alongside issues related to the business environment and regulatory requirements,” she said.

According to the ambassador, the Tanzania Impact Investment Forum was established to bridge this gap by bringing together investors, entrepreneurs and other stakeholders to identify opportunities, discuss challenges and increase the visibility of impact-driven businesses.

She explained that the forum provides a platform for investors to connect with enterprises that are generating measurable social and economic impact, while helping entrepreneurs gain access to the networks and financing needed to expand their operations.

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The envoy further revealed that Switzerland recently launched a new four-year cooperation programme for Tanzania, beginning in 2026, with sustainable economic development remaining one of its core priorities.

Under the programme, Switzerland will continue implementing initiatives such as Innovation for Social Change and Impact-Linked Climate Finance, which are designed to help Tanzanian enterprises scale up their operations while delivering wider benefits to communities.

Furthermore, she said that this year’s forum, held under the theme “Unlocking Growth Capital for High-Impact SMEs,” has been expanded to three days and features 15 start-ups pitching to investors, alongside a structured Deal Room and specialised workshops on investment readiness.

Earlier, the British High Commissioner to Tanzania, Marianne Young said it is important for investors to channel more capital towards Tanzania’s high-impact SMEs to help them scale up, create jobs and drive inclusive economic growth.

She stated that many Tanzanian businesses with strong growth potential continue to face difficulties accessing the financing needed to expand despite demonstrating viable business models and measurable social impact.

Elaborating, she stated that the country’s biggest financing challenge lies in the so-called “missing middle” businesses that have moved beyond the start-up phase and are generating revenue but lack access to growth capital.

According to her, these enterprises are expanding access to essential services, improving livelihoods and creating economic opportunities, yet remain constrained by limited financing and investor perceptions of risk.

Speaking at the event, the Chief Executive Officer (CEO) of Stanbic Bank Tanzania, Manzi Rwegasira said that unlocking growth capital for high-impact small and medium-sized enterprises (SMEs) and transformational projects is crucial for accelerating Tanzania’s economic transformation.

He stated that Tanzania’s youthful population, growing entrepreneurial ecosystem and increasing flow of impact investment present a unique opportunity for sustainable growth while citing successful initiatives such as the Daraja Impact Fund and Funguo Programme, which have helped de-risk businesses and attract commercial investment, including Tanzanian agritech firm MazaoHub that grew from a 50,000-US dollar catalytic investment to secure a 2 million US dollar pre-seed funding round.

However, he cautioned that the country’s investment ecosystem must avoid overstating its impact and instead focus on measurable results, transparency and evidence-based assessments.

Moreover, he called for greater collaboration among banks, development partners, investors and government institutions to address the financing gap facing growing enterprises stressing that creating a predictable business environment, expanding access to blended finance and strengthening support for SMEs would help unlock capital, create jobs and position Tanzania for sustained economic growth.