By Our Reporter
The government has given the Ministry of Industry and Trade six months to develop a startup policy aimed at addressing financing and market access barriers facing young entrepreneurs as Tanzania seeks to turn innovation into jobs and economic growth.
Vice President Deogratius Ndejembi said the policy should create opportunities for startups to access capital, reach wider markets and attract investment, positioning innovative businesses to contribute to the country’s long-term development ambitions under Development Vision 2050.
Speaking at the opening of Startups Week at the Julius Nyerere International Convention Centre (JNICC) in Dar es Salaam, Mr Ndejembi called on financial institutions to develop financing models suited to startups rather than relying solely on conventional lending.
He also directed the Ministry of Industry and Trade to work with the Prime Minister’s Office to establish a joint innovation centre that would connect young entrepreneurs with local and international investors.
The proposals seek to address constraints that often prevent startups from progressing beyond the idea stage, including limited access to finance, business networks and reliable markets.
“Startup development requires an enabling environment that allows young people to turn their ideas into viable businesses,” was the message underpinning the Vice President’s call for a dedicated policy and stronger links between entrepreneurs and investors.
Mr Ndejembi said the government would continue opening economic opportunities through the 30 per cent allocation of public procurement opportunities reserved for special groups and empowerment funds amounting to TZS200 billion.
He stressed that the Tanzania Startup Association should be fully involved in preparing the policy to ensure it responds to the needs of entrepreneurs.
The effectiveness of the proposed framework will depend on whether it translates into accessible financing, clearer regulations and practical opportunities for startups to supply goods and services to public institutions and private-sector customers.
Industry and Trade Minister Judith Kapinga said the ministry should facilitate business development rather than create obstacles for emerging enterprises.
“The ministry is not the police or militia responsible for closing businesses,” she said, emphasising its role in encouraging, nurturing and growing startups.
Ms Kapinga pledged to work with the private sector to improve policies and laws in response to technological changes and the evolving demands of businesses.
She added that the Tanzania Trade Development Authority (TanTrade) would continue promoting Tanzanian products and innovations in international markets, helping local businesses seek customers beyond the domestic economy.
For startups, access to international markets could provide opportunities to expand production, increase revenues and create jobs, although businesses will also need adequate financing and the capacity to meet market requirements.
Dar es Salaam Regional Commissioner Albert Chalamila pledged continued support for innovative businesses, saying they could help widen employment opportunities for young people.
Tanzania Startup Association board chairman Paul Makanza said the sector had contributed to the creation of approximately 20,000 jobs despite challenges related to capital and market access.
The figure points to the sector’s potential contribution to employment, while the financing and market constraints identified by industry representatives underline the need for targeted interventions to sustain business growth.
Under the proposed approach, the innovation centre would serve as a link between entrepreneurs and investors, helping startups identify funding opportunities and establish partnerships.
The government is also looking to use existing economic empowerment mechanisms, including preferential public procurement opportunities, to expand the participation of emerging businesses in the economy.
However, the impact of these measures will depend on how effectively startups can access the opportunities, particularly businesses that lack the financial resources, networks or experience needed to compete for contracts and attract investors.
During the event, Mr Ndejembi toured exhibitions featuring entrepreneurs and investors, including NMB Bank, the event’s main sponsor.
NMB Bank has financed six startups, while five others were in the final stages of receiving support, according to information presented during the event.
The six-month deadline puts the ministry under pressure to produce a policy that goes beyond broad commitments and provides practical solutions to the challenges facing young businesses.
For entrepreneurs, the key test will be whether the proposed measures make it easier to secure funding, win contracts, reach customers and grow their businesses into sustainable sources of employment and income.