Tanzania is intensifying efforts to create a thriving investment ecosystem for startups and small businesses, drawing on insights from recent learning missions to India and Ghana. The Tanzania Startup Association (TSA) led these visits to study successful startup frameworks, aiming to shape reforms that attract long-term investment and foster entrepreneurship.

The missions, conducted earlier this month, provided valuable lessons from India’s advanced startup systems and Ghana’s partnership-driven approaches. “These missions gave us powerful insights into how to build a thriving investment environment,” said Praygod Nanyaro, TSA’s Head of Programmes and Operations. The knowledge gained is set to guide significant policy changes in Tanzania, including the finalization of the Venture Capital and Private Equity Regulations to establish a clear legal framework for alternative investments.

A key initiative is the upcoming National Startup Policy (2025–2029), which will offer regulatory incentives, improved infrastructure, and enhanced access to capital for early-stage businesses. Additionally, Tanzania plans to launch the Tanzania Venture Capital Fund (TVCF), inspired by India’s Fund of Funds model. The TVCF will use government seed capital to attract private investment, build domestic fund management expertise, and unlock growth opportunities for entrepreneurs and investors.

Tanzania’s startup scene has already shown promise, with nearly $300 million raised since 2019, positioning the country among Africa’s top ten startup investment destinations. The Tanzania Investment Centre reported 842 projects worth $7.7 billion registered in 2024, with significant local participation, signaling a maturing investment climate. These reforms aim to further accelerate this momentum, addressing challenges like regulatory complexity and limited capital access that have historically hindered growth. A senior government official emphasized the urgency of these changes, noting that the time for reform is now to sustain Tanzania’s economic progress.