Funguo Innovation Programme Boosts Funding to TZS 6.5 Billion, Supporting 13 Tanzanian Startups
Through strategic partnerships, Funguo is creating an enabling environment where innovators can develop market-ready products that drive inclusive economic growth.
The Funguo Innovation Programme has announced a significant expansion of its investment portfolio to TZS 6.5 billion, reinforcing its commitment to advancing innovation, job creation, and sustainable development across Tanzania. The latest round of catalytic funding will support 13 high-potential startups and MSMEs, providing the capital and technical assistance they need to scale impactful solutions and attract follow-on investment.
The initiative, launched by UNDP Tanzania with support from the European Union (EU), Finland, and the United Kingdom, aims to strengthen Tanzania’s innovation ecosystem by empowering entrepreneurs—particularly youth and women—to overcome systemic challenges in access to finance, mentorship, and market opportunities. Through strategic partnerships, Funguo is creating an enabling environment where innovators can develop market-ready products that drive inclusive economic growth.
Since its inception, the programme has supported 74 startups and enterprises across diverse sectors, including agritech, green innovation, digital services, and social entrepreneurship. Its approach focuses on building resilience and sustainability by helping businesses align with the Sustainable Development Goals (SDGs), ensuring that innovation contributes directly to social and environmental impact.
As part of its ongoing commitment to ecosystem development, Funguo also launched the “Catalysts for Growth: A Landscape Study of Entrepreneur Support Organizations in Tanzania”, developed in partnership with Deloitte East Africa. The study provides critical insights into the country’s entrepreneurial landscape, highlighting opportunities to enhance coordination, investment readiness, and capacity building among innovation actors.
The programme continues to spotlight key initiatives such as Youth Ignite and Green Catalyst, which promote sustainable innovation and climate-conscious entrepreneurship. These initiatives aim to equip young innovators with the tools, networks, and capital required to design solutions that address local challenges while fostering long-term economic resilience.
Funguo’s expansion represents a growing momentum in Tanzania’s innovation ecosystem, signaling increased investor confidence in local entrepreneurship. By mobilizing catalytic capital and strategic partnerships, the programme is not only nurturing startups but also shaping a more inclusive and sustainable future for the country.
Through its targeted investments and ecosystem-building initiatives, Funguo is positioning Tanzania as a regional hub for innovation—one where local entrepreneurs can scale transformative ideas, create jobs, and contribute meaningfully to national and global development priorities.
