Startup ecosystem grows by 25pc
DAR ES SALAAM: THE country’s startup ecosystem is witnessing remarkable growth after increasing by 25per cent over the past two years. The surge reflects the increasing entrepreneurial spirit and a favourable environment for innovation and investment.
The government said the growth in startup numbers highlights the country’s evolving landscape, positioning it as an emerging hub for entrepreneurs.
Thus, the Deputy Prime Minister and Minister for Energy, Dr Doto Biteko, said that apart from the existing efforts to empower innovators and investors in the country, there is still a significant need to further enable them to grow both domestically and internationally.
“The desire and enthusiasm among our youth to explore new ideas is immense, but they often face challenges rooted in our management and governance systems, which are obstacles to their growth. “We should listen to local innovators and provide the necessary support to help them succeed and realize their visions,” he said while opening the Tanzania Start-Up Week Investment Forum on Monday in Dar es Salaam.
Additionally, the deputy PM directed the Ministry of Finance to explore solutions to the capital challenges faced by startups and to improve the tax system in order to attract more investment to the country.
“We must ensure that such innovations are supported and allowed to grow,” he said after visiting pavilions displaying startups’ innovations.
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The government is also continuing its efforts to make the country one of the top investment and innovation hubs in Africa backed by good policy and infrastructures.
The national ICT broadband backbone coverage has reached 83 per cent. The Ministry of Planning and Investment, in collaboration with stakeholders is initiating a policy and legal framework to foster the growth of the startup ecosystem in the country.
Deputy Minister in the President’s Office for Planning and Investment, Mr Stanslaus Nyongo, said that the startup ecosystem is growing rapidly, citing an increase in the number of startups from 673 in 2022 to 843 to date.
He pointed out the challenges faced by the startups, including the absence of clear guidelines, policies, and legal frameworks that govern startup-related issues, which affect their access to capital through financial institutions.
Moreover, Tanzania Startup Association (TAS) Chief Executive Officer, Mr Zahoro Muhaji, recognized the government’s efforts in creating a favorable environment for startups.
He urged forum participants to use the platform to identify challenges and propose solutions, enabling the government to address them and support the further growth of startups.
