More Financing for Startups as FUNGUO pushes its commitments to over TZS 5 billion and partners for the first time with iMBEJU

FUNGUO, in partnership with CRDB Bank’s iMBEJU initiative, proudly unveiled the third cohort of 18 promising startups and innovative SMEs, marking another milestone in supporting Tanzanian entrepreneurship. This cohort emerges from a highly competitive process following the third Call for Funding Applications, launched in September 2024, which resulted in more than 400 applications nationwide. The funding pool, valued at TZS 1.45 billion in the form of FUNGUO Catalytic Grants and TZS 355 million in iMBEJU Soft Loans, reflects the commitment to strengthening innovative impact-driven businesses that contribute to job creation, youth empowerment, and the Sustainable Development Goals (SDGs) in Tanzania.

This strategic collaboration blends transformative, non-repayable grants from FUNGUO, funded by the European Union with reimbursable grants from CRDB Bank Foundation’s iMBEJU programme, amplifying opportunities for startups to scale and thrive. Notably, 40% of the funds were reserved for women-led or women-founded businesses, emphasizing the importance of gender inclusivity in driving Tanzania’s innovation ecosystem.

Aiming to sustainably transform lives, the selected startups span multiple sectors, including agriculture, energy, circular economy, healthcare, and financial services, often offering technology-driven solutions. These businesses aim to address pressing societal challenges while creating employment opportunities, particularly for youth. Over the past cohorts, FUNGUO investees have collectively raised TZS 15.5 billion in additional funding and generated over 4,000 direct and indirect jobs. This year’s cohort is poised to amplify this impact.

Beyond funding, these startups will join the previous cohorts of startups and benefit from tailored technical assistance, showcasing opportunities, and investment profiling to accelerate their growth and attract further financing. By creating an enabling environment for innovation, FUNGUO and iMBEJU are shaping a future where Tanzanian entrepreneurs can flourish, contributing significantly to the nation’s economic and social development.

Speaking at the unveiling event Hon, Jerry Silaa Minister of Information ICT&Communication, remarked, “Innovation is the backbone of our nation’s progress, and today, as we have witnessed the unveiling the 3rd cohort of investees under the FUNGUO Innovation Programme in partnership with iMBEJU, we celebrate the bold ideas and entrepreneurial spirit driving Tanzania’s future. The Ministry of Information, Communication, and ICT is committed to supporting initiatives like this that empower startups to create solutions that impact our communities and contribute to a digital and inclusive economy.”

Ambassador Christine Grau, EU Head of Delegation, highlighted the broader impact: “The European Union is proud to support Tanzanian startups with catalytic funding, reinforcing the pivotal role of innovation in driving economic transformation. With over TZS 1 trillion now allocated to private sector development, we are fostering an ecosystem where entrepreneurs can thrive and create sustainable jobs for the youth.”

UNDP Resident Representative Shigeki Komatsubara emphasized the importance of investing in young talent, stating, “The youth of Tanzania are a vital force for change. Through initiatives like FUNGUO, we are unlocking their potential, ensuring they have the resources to innovate, grow, and drive the future of our economy.”

A growing legacy, since its inception, FUNGUO has demonstrated the power of strategic investments in startups to create lasting social and economic impact. By partnering with like-minded institutions such as CRDB Bank’s iMBEJU programme, the initiative continues to scale its reach and reinforce Tanzania’s startup ecosystem.

This milestone serves as a testament to the transformative power of collaboration between development partners, private sector entities, and the government in empowering entrepreneurs, creating jobs, and accelerating progress towards the SDGs.

Distributed by APO Group on behalf of Delegation of the European Union to the United Republic of Tanzania and the East African Community.