The FUNGUO Innovation Programme has significantly scaled up its support for Tanzania’s startup ecosystem, increasing its total catalytic funding to TZS 6.5 billion (approximately $2.65 million). This expansion underscores a deepening commitment to fostering innovation and entrepreneurship across the country.
In its latest funding round, FUNGUO is backing 13 early-stage ventures, bringing the total number of supported startups and small businesses to 74. The initiative aims to address a critical funding gap that often hinders local entrepreneurs from scaling their solutions and attracting follow-on investment.
Unlocking Potential Through Strategic Support
FUNGUO, meaning “unlock” in Swahili, is implemented by the United Nations Development Programme (UNDP) in Tanzania. It is primarily funded by the European Union (EU), with additional support from the UK’s Foreign, Commonwealth & Development Office (FCDO) and the Government of Finland. The programme’s core strategy revolves around providing early-stage, de-risking capital to startups, with a strong emphasis on ventures led by women and youth.
For entrepreneurs like Geophrey Tenganamba, co-founder and CEO of agritech startup MazaoHub, FUNGUO’s support has been transformative. His company, which integrates AI-driven soil analysis with a network of farmer support centres, recently closed an oversubscribed $2 million pre-seed round. Tenganamba credits FUNGUO’s initial investment for enabling the company’s early development.
“Before we received any other funding, we wouldn’t have had a soil kit without the UNDP,” he said. “They provided $50,000 through FUNGUO to help us pilot the design. That funding was catalytic, it helped us reach the point where we could attract larger investments.”
Beyond Capital: Building an Innovation Ecosystem
FUNGUO’s impact extends beyond financial support. The programme positions itself as an ecosystem enabler, working to dismantle systemic barriers that impede innovation and business growth in Tanzania.
In tandem with the latest funding announcement, UNDP and Deloitte East Africa unveiled a comprehensive study titled “Catalysts for Growth: A Landscape Study of Entrepreneur Support Organizations in Tanzania.” The report maps out the resources available to founders and identifies gaps in the support ecosystem.
Additionally, FUNGUO backs initiatives such as the #YouthIgnite fellowship, which nurtures student-led startups, and the #Greencatalyst Initiative, which promotes innovation in the forestry value chain.
Government and International Endorsement
The Tanzanian government has expressed strong support for FUNGUO’s mission. Dr. Blandina Kilama, Deputy Executive Secretary for Trade and Innovation at the National Planning Commission, emphasized the importance of creating a conducive environment for entrepreneurs. She cited the recent introduction of Crowdfunding Guidelines as a step toward simplifying and accelerating business formation and growth in Tanzania.
International partners also view FUNGUO as a strategic tool for driving inclusive economic development. Marc Stalmans, Head of Cooperation for the EU Delegation to Tanzania, highlighted the programme’s alignment with the EU’s Global Gateway strategy, which focuses on infrastructure and human capital investments.
“The EU believes that sustainable development is driven by the creativity and initiative of entrepreneurs,” Stalmans said. “FUNGUO is a key part of our commitment to supporting Tanzania’s economic transformation.”
Anna Wilson, Development Director at the British High Commission, and Sanna-Liisa Taivalmaa, Head of Cooperation at the Embassy of Finland, echoed this sentiment. Both emphasized the programme’s role in empowering women and youth entrepreneurs and building a resilient, future-ready economy.
Looking Ahead
As FUNGUO deploys its latest round of capital, attention will turn to its ability to help startups navigate the “valley of death”, the precarious early stage where many ventures fail due to lack of funding. The programme’s success will be measured by its capacity to catalyze commercial investment and contribute to the emergence of a self-sustaining tech ecosystem in East Africa’s largest country.
FUNGUO Innovation Programme: At a Glance
- Total Catalytic Funding: TZS 6.5 billion (~$2.65 million)
- Total Ventures Supported: 74
- Latest Cohort: 13 startups
- Key Partners: European Union (EU), UNDP, UK (FCDO), Government of Finland
