Why uplifting welfare of local investors pertinent

INVESTING in young people has been picked as one of the key factors that can help to build a resilient and prosperous nation hence a need to efficiently support them in order to realise their goals.

This was highlighted during the Serengeti Business Angel Network (SBAN) launch of the second cohort of its flagship Tanzania Angel Investors Accelerator Programme (TAA) in partnership with the Dutch Embassy and the Netherlands Enterprise Agency (RVO).

The launching exercise was held in Dar es Salaam on Wednesday and building on the success of the first cohort which unlocked over 84m/- in investments for three high-growth startups, SBAN aims to train 1,000 local Angel investors and unlock over 2bn/- in investment by 2027.

Leveraging findings from the recent Tanzania Angel Investment Feasibility Study, the new cohort will provide aspiring Angel Investors with comprehensive training, access to a robust network of active Angel Investors across Africa and hands-on support.

This combination is designed to build confidence in investing in Tanzania’s promising startups, SBAN’s collaboration with the Dutch Embassy and RVO underscores the critical role the TAA programme plays in shaping Tanzania’s angel investment landscape.

“This partnership is set to significantly increase the number of active local Angel Investors, boost deal flow and attract foreign capital to Tanzania’s vibrant startup ecosystem.

“In addition, SBAN has forged a strategic partnership with Breakthrough Attorneys, a leading legal and transactional advisory firm to enhance legal and advisory support for TAA participants, ensuring that Angel Investors receive the highest quality guidance throughout the programme,” noted Mr Rodrique Msechu, SBAN Founder and Network Manager.

He added: “Running from September 2024 to February 2025, the second cohort of the TAA programme will train 25 aspiring Angel Investors and directly invest in select startups during the programme.

“Participants will benefit from a challenge-based curriculum, mentorship from seasoned investors and exposure to high- growth investment opportunities.”

He then expressed gratitude to the Dutch Embassy for recognising the potential of Tanzania’s startup ecosystem and supporting the Angel Investors Accelerator Programme noting that the programme targets high-net-worth individuals and professionals with corporate experience, who are not only willing to invest but also mentor founders and leverage their professional networks to accelerate portfolio growth.

“The support from the Dutch Embassy allows us to subsidise participation costs, with individuals paying just 560,000/- to join— a fraction of the total cost— and committing to a minimum investment of 2.8m/-,” Msechu stated.

In his remarks, the Head of the Economic Department at the Embassy of the Netherlands in Tanzania, Mr John Mike Jager, emphasised the crucial role Angel Investors play to bring forth economic prosperity.

“The Netherlands Embassy has been a frontrunner in supporting the Startup ecosystem and I am delighted that Cohort 2 of TAA will focus on untapped potential in angel investing in Tanzania thereby attract a mix of professionals, corporate leaders and ecosystem stakeholders.

“This diversity of the program is designed to expand, strengthen and diversify the Angel Investors community with each participant contributing unique perspectives and expertise, ultimately build a stronger entrepreneurial ecosystem.

“For start-ups to grow, they need access to knowledge, resources, networks and funding…Angel Investors are a crucial part on this. Supporting the TAA programme is essential for building a strong entrepreneur ecosystem.

“I am so delighted with this programme because it will expand, strength and diversify the Angel Investors community in Tanzania and if people are interested to join this scheme, they should not miss out this opportunity,” he said.

On his part, Mr Francis Omorojie, the  Co-founder of SBAN and Enovate Ventures, expressed excitement at the launch, stating, “This is another remarkable stride by SBAN towards accelerating the mobilisation of local capital for Tanzania’s booming startups.

“We are committed to increasing the number of local angel investors and equipping them with the confidence and resources to make impactful investments.

“Tanzania is one of the youngest countries and one of the best way to build a very resilient and prosperous country is to invest in young people who deserve to empower them so that they can be able to solve local challenges.

“In that way, jobs will be created and businesses that really support the growth of Tanzanians will blossom leading to economic prosperity both at individual and national level,”Mr  Omorojie remarked.

Similarly, Unit Trust Tanzania Asset Management Investor Services (UTT AMIS) Board Chairman Professor Faustin Kamuzora noted that TAA network enables participants to de-risk investments by co-investing smaller amounts and diversifying their portfolios.

“Though I have experience in the investment space, the TAA programme equipped me with valuable tools and connected me to a community of investors,” Kamuzora, who invested in two startups through the programme said while sharing his goal to build a portfolio of at least 10 startups.

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“Though I have experience in the investment space, the TAA programme equipped me with valuable tools and connected me to a community of investors. This network enables participants to de-risk investments by co-investing smaller amounts and diversifying their portfolios,” he said.

In collaboration with its esteemed partners, SBAN is set to redefine the Angel investing landscape in Tanzania and through the second cohort of the TAA programme, SBAN is not only nurturing a new generation of local angel investors but also fostering a thriving startup ecosystem that promises to significantly contribute to Tanzania’s economic growth.

As SBAN moves forward with its ambitious goals, it remains committed to unlocking capital, creating value for investors and supporting the next wave of high-growth startups in Tanzania.