The FUNGUO Innovation Programme, co-funded by the European Union, and the CRDB Bank Foundation's flagship programme IMBEJU, have teamed up to change the trajectory of startup financing in Tanzania. This strategic collaboration aims to blend the non–refundable grants provided by the European Union and the reimbursable grants provided by the CRDB Bank Foundation, creating a powerful synergy to empower entrepreneurs.  The partnership is set to significantly enhance the opportunities available to Tanzanian startups and innovative Small and medium-sized enterprises (SMEs).

FUNGUO, supported by the European Union through the Business Environment, Growth and Innovation (BEGIN) programme, the British Government through the Africa Technology and Innovation Partnerships (ATIP) initiative and UNDP, has been instrumental in supporting innovative startups in Tanzania. Since its inception, FUNGUO has invested over TZS 3.8 billion in 43 ventures, contributing to the creation and sustainability of over 4,000 direct and indirect jobs for Tanzanian youth. The programme’s mission is to increase the number of successfully scaled innovation ventures that contribute to Tanzania's Sustainable Development Goals.

This year, FUNGUO has allocated up to 1.4 billion Tanzania shillings with a deliberate focus on empowering female startup founders. At least 40% of the available funding has been reserved for women-owned and women-led businesses, which is up from last year’s 30%, reinforcing our commitment to gender inclusivity and support for female leadership in innovation. The programme seeks to provide catalutic funding to competitively selected youth-led businesses that are majority-owned by Tanzanian citizens, with innovative and viable business models and the potential to scale, but that have not yet been able to attract substantial debt or equity financing, with the aim to de-risk them and make them more attractive to other funders.

FUNGUO as well as IMBEJU provide not only financial support but also equip youth, women entrepreneurs, and special groups with the necessary tools to transform their innovative and scalable business ideas into thriving ventures with significant societal impact. This year’s call for funding will also leverage the strengths of both FUNGUO and IMBEJU in building a pipeline attractive for other financing schemes and facilities in the country, including angel investors and other financial institutions.

In his speech as the Guest of Honour, Hon. Stanslaus Haroon Nyongo (MP), Deputy Minister of State, President's Office - Planning and Investment, stated that “Tanzania’s young people are our greatest resource, full of innovative ideas and the ambition to create a better future. By providing them with access to catalytic funding, technical support, and mentorship, we are giving our youth the tools they need to build successful, scalable businesses. This is crucial as we aim to develop a dynamic private sector that can create jobs and promote economic diversification. I would like to thank our development partners, the EU,  the British Government and UNDP for supporting this kind of initiatives."

Ms. Christine Grau, the European Union Ambassador to Tanzania underscored the European Union’s commitment to fostering a business environment that promotes growth and innovation in Tanzania.

“The FUNGUO programme is a testament to our dedication to supporting Tanzanian entrepreneurs in realizing their full potential. We believe this collaboration with IMBEJU will significantly strengthen the startup ecosystem in Tanzania, bringing tangible benefits to entrepreneurs and the wider economy."  said EU Ambassador Grau.

In his opening remarks, Mr Muyeye Chambwera, UNDP Tanzania Deputy Resident Representative highlighted UNDP's commitment to empowering young people through diverse initiatives. Mr. Chambwera stated that "UNDP is dedicated to unlocking the potential of young people, and unlocking access to finance for their ventures is quite critical. We believe we can make a bigger impact through meaningful collaboration, and our partnership with CRDB Bank Foundation is one evidence to the many efforts we are making to open up more doors for collaboration."

Tully Esther Mwambapa, Managing Director of the CRDB Bank Foundation, emphasized the transformative potential of this partnership for youth startups. "The IMBEJU programme is deeply committed to empowering the next generation of Tanzanian entrepreneurs. By integrating capacity building, financial literacy, and entrepreneurship skills development, IMBEJU is not just offering financial support; we are providing a comprehensive ecosystem that nurtures young talent. This partnership with FUNGUO amplifies our efforts to create a supportive environment where youth-led startups can thrive. We believe that by equipping young entrepreneurs with the tools they need, we are laying the groundwork for a vibrant and sustainable entrepreneurial landscape in Tanzania," Ms. Mwambapa said.

While introducing the FUNGUO Programme, Joseph Manirakiza, the Programme Manager, highlighted its holistic approach to supporting entrepreneurs. "FUNGUO is not just about funding; it's about providing a comprehensive support system that includes technical assistance, mentorship, and networking opportunities. Our goal is to empower Tanzanian entrepreneurs to overcome challenges while exploring all means possible to achieve sustainable growth. Strategic partnerships like this one with CRDB Foundation draw us a step closer to unlocking the full potential of the Tanzanian startups and innovative SMEs," he explained.

 Mr Richard Craig, the Head of the Economics team at the British High Commission Dar es Salaam emphasised the United Kingdom’s commitment to partnering with Tanzania for sustainable economic growth. Speaking at the launch, he said “FUNGUO programme is part of the UK’s broader economic partnership with the Government of Tanzania, as set out in our Mutual Prosperity Partnership. Impactful startups and innovative Small and Medium Enterprises (SMEs) remain important on the path to inclusive economic growth. These have potential to create quality jobs and inspire innovative solutions to tackle several development challenges.

This call for funding applications will be open from September 10^th, 2024, to October 09^th, 2024. Interested, eligible startups and SMEs are encouraged to apply and leverage this opportunity to receive funding and support to scale their impact-driven ventures.

About FUNGUO

The FUNGUO programme is committed to advancing Sustainable Development Goals (SDGs) in Tanzania through an integrated approach aimed at nurturing impact-driven startups and innovative Micro, Small, and Medium Enterprises (MSMEs). By strategically addressing obstacles within the innovation ecosystem, FUNGUO seeks to create an empowering environment for innovators and entrepreneurs.

Co-funded by the European Union (through the BEGIN Programme), the British Government (through the Africa Technology and Innovation Partnerships, ATIP) and UNDP, FUNGUO’s aim is to contribute towards increasing the number of successfully scaled impact-driven start-ups and innovative MSMEs to accelerate the achievement of SDGs in Tanzania. This is being achieved through the programme’s integrated approach to contribute towards addressing the stumbling blocks and gaps in the innovation ecosystem that hinder innovative impact ventures from scaling, while promoting an environment that empowers innovators, entrepreneurs and enablers

The program's theory of impact posits that supporting and scaling startups and innovative MSMEs will not only generate jobs, particularly for women and youth, but also enhance income, leading to quality livelihoods and fostering sustainable and inclusive development.

Since its inception, FUNGUO has invested over TZS 3.8 billion in 43 ventures, contributing towards creating and sustaining over 4,000 direct and indirect jobs for Tanzanian youth. The programme is also working with the wider innovation ecosystem to enhance the quality of support services and contributing towards a more innovation-friendly business environmemt.

About Imbeju

IMBEJU, a key initiative of the CRDB Bank Foundation, it is a sustainability funding program aimed at revitalizing entrepreneurship in Tanzania. It provides youth, women entrepreneurs, and special groups with essential tools, including financial literacy, entrepreneurship skills, and business management training. Through soft loans, IMBEJU supports scalable business ideas with significant societal impact.

The program empowers marginalised and unbanked communities, helping them achieve economic self-sufficiency. Since its launch, IMBEJU has trained over 500,000 individuals and disbursed more than TZS 10 billion in grants, working in collaboration with partners like COSTECH, ICTC, UNDP, and others to foster sustainable growth across the nation.