The FUNGUO Innovation Programme unveiled the second cohort of 17 investees, following its successful conclusion of the Second Call for Funding Applications. The call, valued at TZS 1.2 billion, was launched mid-June, targeting Tanzanian impact-driven startups and innovative SMEs with growth potential. This second call brings FUNGUO’s total catalytic funding commitment to TZS 3.8 billion, fully funded by the EU.

FUNGUO, a joint initiative of the European Union, the British High Commission, and the United Nations Development Programme (UNDP), aims to increase the number of successfully scaled innovation ventures that contribute to national development goals and the Sustainable Development Goals in Tanzania. This year, as a conscious effort to encourage and promote women innovators and entrepreneurs, at least 30% of the funds were exclusively reserved for women-founded or women- led startup ventures.

The applications for this round emanated from 22 regions across the country and spanned crucial sectors including agriculture, energy, fisheries, healthcare, education, and technology-driven solutions. Notably, 45% of all applications received were from women-led or women founded businesses. This year, 17 innovative businesses were selected from a pool of 356 applications received nationwide. This initiative, comes after the successful completion of FUNGUO’s first cohort which amongst many other achievements, saw its 25 investees raising over TZS 1.28Bn in additional funding, creating approx. 3,400 direct and indirect employments, and forging over 250 strategic partnerships.

The funding is part of FUNGUO's broader intervention, aiming to increase the number of impactful startups and innovative SMEs successfully navigating the path to scale. Beyond the catalytic funding, FUNGUO investees stand to gain from supplementary technical assistance, profiling, and showcasing opportunities. These additional supports are strategically designed to assist them in attracting further investment, enhancing their overall growth trajectory. The ultimate goal is to expedite progress towards the Sustainable Development Goals (SDGs) in Tanzania.

FUNGUO is jointly funded by the European Union, the British High Commission, and the United Nations Development Programme (UNDP). It is implemented by UNDP Tanzania in partnership with UNCDF and works closely with the Tanzania Commission for Science and Technology, COSTECH. The European Union’s support of FUNGUO is part of the “Business Environment, Growth and Innovation” (BEGIN) Programme which is coordinated by the Ministry of Investment and Planning.

The UNDP Resident Representative, Mr. Shigeki Komatsubara in his opening remarks during the unveiling emphasized that “UNDP, through its numerous initiatives like the FUNGUO Innovation Programme, and together with the Government of Tanzania is investing in talents, potential and opportunities for the future of Tanzania. I implore all stakeholders to partner with us and align our efforts towards unlocking the potential of our youth. The opportunities that lie ahead for them are vast, but they need investment to be fully capitalized upon. By investing in youth, we are investing in the future of Tanzania.”

Baraka Aligaesha, Director of Business Environment Unit, Ministry of Investment and Planning said, “As government, under the leadership of Her Excellency Madame President, Dr. Samia Suluhu Hassan, we are streamlining regulatory processes, reducing bureaucracy, and implementing policies that encourage entrepreneurship. Our goal is to make it easier for startups like yours to navigate the business landscape and flourish. Some of these initiatives are supported by our friends at the EU through the Business Environment, Growth and Innovation (BEGIN) Programme.

Additionally, we are investing in infrastructure, education, and skills development to ensure a robust foundation for innovation to blossom. Through strategic partnerships with the private sector, we are working to create a business-friendly environment that attracts both local and foreign investments.” he added.

Amb. Christine Grau, Head of Delegation of the European Union to the United Republic of Tanzania and East African Community added that “The European Union is very happy to directly support young investees in Tanzania on their way to success; initially through the first and now the second FUNGUO Call providing a total of TSZ 3.8 billion in grant catalytic funding. We are aware of immense opportunities emerging with private sector innovation and start-ups in Tanzania. In line with our Global Gateway Strategy, beyond FUNGUO, we have expanded various direct financing opportunities for private sector in our current portfolio to more than TZS 1 trillion. All our latest programmes include components to enhance the catalytic role of the private sector for the prosperity and transformation of Tanzania’s economy.”

Mr Euan Davidson, Sustainable Prosperity Team Leader, British High Commission concluded by saying, “SMEs are a key part of the Tanzanian economy, providing the majority of jobs and being the source of many of the innovative ideas that will drive improvements public and private sector. The UK is keen to foster innovation in Tanzania through unlocking finance and supporting an enabling and safe environment for SMEs. We look forward to continuing to walk this journey with you as proud supporters and champions for Tanzania’s innovation and startup ecosystem.”

/media/96771 (English Press Release)

/media/96770 (Swahili Press Release)