Dar es Salaam, 10 October 2025: The FUNGUO Innovation Programme has expanded its catalytic funding to a total of TZS 6.5 billion, marking a major milestone in supporting Tanzania’s innovation and entrepreneurship ecosystem. The latest investment targets 13 high-potential startups and MSMEs from across the country, empowering them to scale impactful solutions, create decent jobs, and accelerate progress toward the Sustainable Development Goals (SDGs).
Initiated and implemented by UNDP Tanzania with funding from the European Union (EU), the Republic of Finland, and the British Government (FCDO), the FUNGUO Innovation Program is dedicated to Investing in Innovation for a Prosperous Tanzania. The program is nurturing a vibrant ecosystem for impact-driven entrepreneurs by tackling systemic barriers to innovation, finance, and business growth. By de-risking startups and strengthening their capacity to attract follow-on investment, FUNGUO empowers entrepreneurs, particularly women and youth, to scale their solutions and drive inclusive economic transformation across the country.
Dr. Blandina Kilama, Deputy Executive Secretary – Trade and Innovation, National Planning Commission, commended FUNGUO’s contribution to national development priorities: We recognize that government cannot create every job or solve every problem. But the government can create an enabling environment where innovators and entrepreneurs can thrive. That is our commitment.
We are working to: First, align our policies with Vision 2050 to ensure that innovation and entrepreneurship are prioritized in our national planning frameworks. Dr Blandina added, “The government aims to improve the ease of doing business so that starting and scaling a business in Tanzania becomes simpler, faster, and less expensive. The new Crowdfunding Guidelines are one example; we need more such enabling policies.
“Representing the European Union Delegation to Tanzania, Mr. Marc Stalmans, Head of Cooperation, highlighted that Tanzania’s growth increasingly stems from the dynamism of its private sector. “The European Union firmly believes that sustainable development comes from the ingenuity and initiative of entrepreneurs. Under the Global Gateway, we are investing in the people and ideas that are shaping Tanzania’s economic transformation. Through FUNGUO, we have proudly supported startups that are turning innovation into inclusive growth, job creation, and real opportunities for communities across the country.”
Development Director at the British High Commission, Ms. Anna Wilson, highlighted the UK’s partnership focus on inclusive growth and private sector empowerment “Supporting innovation and entrepreneurship is key to building a stronger, more resilient Tanzanian economy. The UK is proud to be part of the FUNGUO partnership that nurtures startups with the potential to transform communities and drive lasting impact.”
Ms. Sanna-Liisa Taivalmaa, Head of Cooperation at the Embassy of Finland, underlined Finland’s long-standing support for innovation and sustainable development in Tanzania “Finland’s cooperation in innovation is rooted in our belief that local ideas can solve local and global challenges. Through FUNGUO we are supporting the #GreenCatalyst Initiative which continues to be a strong platform for advancing this vision, particularly by empowering women and youth entrepreneurs who are shaping the future of Tanzania’s innovation within the Forestry value chain.”
In his welcoming remarks, Mr. John Rutere, Deputy Resident Representative, UNDP Tanzania, emphasized the importance of catalytic investment in unlocking the country’s innovation potential. John stated “Investing in innovation is investing in Tanzania’s future. Through FUNGUO, UNDP is creating opportunities for entrepreneurs to design sustainable solutions that respond to local challenges, create jobs, and contribute to a more inclusive and prosperous Tanzania.”
Alongside the unveiling of a new cohort of investees—raising the total number of startups supported under FUNGUO to 74—UNDP launched a new study, “Catalysts for Growth: A Landscape Study of Entrepreneur Support Organizations in Tanzania,” developed in collaboration with Deloitte East Africa. The event also featured the release of a special FUNGUO Edition of Atoms & Bits Magazine, celebrating innovation stories from across the ecosystem.
Through strategic investments and partnerships, other initiatives such as the #YouthIgnite student founders fellowship and the #Greencatalyst Initiative FUNGUO continues to catalyse innovative businesses across numerous sectors into lasting impact and building an innovation ecosystem where Tanzanian entrepreneurs can thrive, scale, and lead the nation’s journey toward sustainable prosperity.
About FUNGUO
The FUNGUO Innovation Programme is a national initiative implemented by UNDP Tanzania, in collaboration with the European Union, the Embassy of Finland, and the British High Commission. The programme is dedicated to advancing the Sustainable Development Goals (SDGs) by supporting impact-driven startups and innovative MSMEs through catalytic funding, business development support, and ecosystem strengthening.
Through its multi-stakeholder approach, FUNGUO works to address systemic barriers within Tanzania’s innovation landscape, enabling entrepreneurs to scale, attract investment, and drive inclusive, sustainable growth.
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