Tanzania’s startups power national transformation

DAR ES SALAAM: TANZANIA’S startup eco-system is no longer a quiet undercurrent-it is a driving force of national growth.

With strong foundations and rising momentum, start- ups are shaping a new chapter of progress—innovative, inclusive and unmistakably homegrown.

The Tanzania Startup Ecosystem Status Report 2024, issued on Monday, reveals a vibrant and accelerating scene.

Tanzania Startup Association (TSA), Chairman, Mr Paul Makanza said in the report that number of active startups has grown by 24 per cent in just one year, reach- ing 1,041 ventures that are collectively reshaping the country’s economic land- scape.

“These figures demon- strate the vibrancy and grow- ing self-employment culture among Tanzanian youth,” Mr Makanza said, adding: “Startups remain at the forefront of innovation, job creation and socio-economic transformation.”

The data shows an upward trajectory in startup formation, increasing from 842 in 2023 to 1,041 in 2024—a 23.6 per cent rise within a year.

Employment generated by these startups also grew by 23 per cent, underscoring their growing role as engines of job creation and innovation, with more than 138,000 jobs now supported nation wide.

TSA Chief Executive Officer Mr Zahoro Muhaji said during the report launch that many of these ventures are aligning with the Sustainable Development Goals, particu- larly SDG 8, which promotes decent work and economic growth.

“At the heart of this growth is a new genera- tion of founders—many of them women—who are not only building businesses but aligning them with global priorities such as the Sustain- able Development Goals.

“We are witnessing the emergence of an economy that’s being built from the ground up by Tanzanians themselves,” said Mr Muhaji. Additionally, investment activity surged as well.

Foreign Direct Investment more than doubled to 53 million US dollars—marking a 112 per cent increase—while Domestic Direct Investment climbed to 43.4 million US dollars, an 85.5 per cent rise.

According to the report, FinTech led the funding land- scape, attracting 41.4 million US dollars and accounting for more than 78 percent of all foreign investment, while AgriTech also maintained a strong position.

The report also highlights encouraging progress in gender inclusion, with the share of female-led startups increasing to 16 per cent.

TSA is a not-for-profit umbrella membership-based organisation with over 900 startup members, mainly youth-owned companies, playing an essential role in giving the startup ecosystem a unified voice.