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 advance 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 Programme is dedicated to “Investing in Innovation for a Prosperous Tanzania.”
The program nurtures 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 nationwide.
Dr. Blandina Kilama, Deputy Executive Secretary for Trade and Innovation at the National Planning Commission, commended FUNGUO’s contribution to national priorities:
“The government cannot create every job or solve every problem, but it can create an enabling environment where innovators and entrepreneurs thrive. We are aligning our policies with Vision 2050 to prioritize innovation and entrepreneurship, and initiatives such as the new Crowdfunding Guidelines demonstrate our commitment.”
Mr. Marc Stalmans, Head of Cooperation at the EU Delegation to Tanzania, emphasized the private sector’s growing role in driving Tanzania’s growth:
“The EU believes that sustainable development comes from the ingenuity of entrepreneurs. Through FUNGUO, we are supporting startups that turn innovation into inclusive growth, job creation, and opportunities for communities.”
Ms. Anna Wilson, Development Director at the British High Commission, reaffirmed the UK’s commitment:
“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 potential to transform communities.”
Ms. Sanna-Liisa Taivalmaa, Head of Cooperation at the Embassy of Finland, highlighted Finland’s long-standing partnership:
“Finland believes local ideas can solve local and global challenges. Through FUNGUO, we support initiatives like the #GreenCatalyst which empower women and youth within the forestry value chain.”
In his welcoming remarks, Mr. John Rutere, Deputy Resident Representative of UNDP Tanzania, underscored the importance of catalytic investment:
“Investing in innovation is investing in Tanzania’s future. FUNGUO creates opportunities for entrepreneurs to design sustainable solutions that generate jobs and build a more inclusive and prosperous Tanzania.”
Alongside unveiling a new cohort of investees—bringing the total startups supported under FUNGUO to 74—UNDP also launched a new study, “Catalysts for Growth: A Landscape Study of Entrepreneur Support Organizations in Tanzania,” developed with Deloitte East Africa. The event further featured a special FUNGUO Edition of Atoms & Bits Magazine, celebrating innovation stories from across the ecosystem.
Through initiatives such as #YouthIgnite and #GreenCatalyst, FUNGUO continues to catalyze innovative businesses across sectors, strengthening Tanzania’s innovation ecosystem and paving the way for sustainable prosperity.
