Rethinking startup funding: From fundraising to friend-raising — A new path for small African ventures

By Charles Mkoka

A recent panel discussion brought to light some pressing concerns about what funding initiatives truly mean for small startups.

This conversation quickly became a hot topic, especially when Eliwilimina Buberwa presented a viewpoint that challenged the prevailing assumptions held by many.

Drawing from her recent experience at the Mandela Washington Foundation’s Young African Leaders summit in the United States, Buberwa argued passionately that startups and youth-led organizations don’t have to rely solely on sponsors or investors for funding. She shared a refreshing perspective: 

“We were all searching for money with little success. But things began to change when we shifted our focus from fundraising to friend-raising.” Her confidence reflected a deeper understanding born from firsthand experience.

The discussion was skillfully moderated by Sesillia Shirima, CEO of the Young and Alive Initiative, under the compelling theme: “Shifting Power, Sharing Resources: A Collective Call to Invest in Youth-Led Organizations and Movements.”

 Miss Buberwa highlighted the many obstacles small startups face, particularly the common but limiting mindset of chasing funding where everyone else is looking.

 She emphasized that smaller, more community-rooted activities—collaborations with local entrepreneurs, collecting modest donations, selling products—can be surprisingly powerful.

Contrary to popular belief, asking for small contributions from local supporters is not a sign of weakness or poverty.

 Instead, it demonstrates an organization’s commitment to building its foundation in visibility and sustainability, independent of waiting on large funders or sponsors. 

“Starting with your immediate circle—friends and family—then moving outward to friends of friends and referrals, creates a grassroots momentum that’s often overlooked,” Eliwilimina explained.

Mina added that this strategy of seeking support “where everyone else isn’t” can generate the modest but crucial funds needed for daily essentials like office supplies and professional salaries. 

“To operate effectively, you need expertise—proposal writing, outreach, which costs money. Even small amounts help ease that burden while waiting for bigger grants,” she noted.

The panel also explored alternative funding approaches drawn from real-life experiences with donors. They stressed how a project’s alignment with a donor’s mission, its cultural relevance, proximity, and local engagement can significantly influence funding opportunities. These nuances often determine whether organizations thrive or struggle to secure support.

This insightful discussion was part of an initiative by Shirima’s organization aimed at equipping graduates of the STAWI LAB program. 

These 20 Tanzanian organizations, drawn from diverse sectors, recently completed training, mentoring, and capacity-building activities designed to boost their productivity, transparency, and impact.

 The program culminated in a contest recognizing the top five organizations with awards totaling over 10 million Tanzanian shillings.

The event, held on June 6, 2025, at the PSSSF Tower in Kivulini, Dar es Salaam, was graced by Patrobas Katambi, Deputy Minister in the Prime Minister’s Office responsible for Labour, Youth, Employment, and Persons with Disabilities.

 His presence underscored the importance of youth empowerment in Tanzania’s development, encapsulated by the hashtag #miakwavijana.

The panel wrapped up on a note of optimism and open-mindedness, with many in attendance applauding the fresh perspectives shared. 

The conversation wasn’t just about money—it was about reshaping mindsets, cultivating community support, and fostering sustainable growth for small startups navigating an often-challenging landscape.


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