TSA, AfriCapital expand startup financing

DAR ES SALAAM: THE Tanzania Startup Association (TSA) and AfriCapital Holdings have signed a Memorandum of Understanding (MoU) to strengthen the country’s startup ecosystem.

The three-year partnership aims to support young businesses by expanding access to venture capital and bridging the financing gap that often holds back early-stage entrepreneurs.

The TSA Chief Executive Officer (CEO) Mr Zahoro Muhaji said during the signing ceremony that many startups rely on alternative sources of capital, therefore the partnership will play a vital role in unlocking these opportunities.

“This agreement will make it easier for startups in the country to secure funding, especially from international investors. “Through our collaboration, AfriCapital will help connect these investors directly with emerging businesses in Tanzania,” said Mr Muhaji over the weekend.

In the last four years, the nation’s startup ecosystem has growing steadily, reaching over 1,000 registered startups.

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According to Mr Muhaji, these companies have collectively attracted over 300 million US dollars in investment within that period, a clear indication of the sector’s growing contribution to the national economy. He added that TSA will continue creating an enabling environment for startups to thrive.

One such effort is Startup Week, a flagship platform that brings together international investors and local startups that are ready for funding.

AfriCapital Founder and CEO, Mr Burak Büyüksarag said that the collaboration will also establish a dedicated incubation programme, designed to provide startups with alternative financing solutions such as venture capital.

“We recognise the challenges startups face in accessing traditional financing, and we believe venture capital offers a powerful alternative,” Mr Büyüksarag said.

The startup week will take place between 13 and 17 in October this year in Dar es Salaam.