The United Nations Development Programme (UNDP) has awarded over TSh 70 million in seed funding to promising university student startups as part of the second season of the Faculty Exchange Programme, held for three days at the Indian Institute of Technology Madras Zanzibar (IIT Madras Zanzibar).
The programme brought together student innovators, university leaders, mentors, and ecosystem partners to strengthen universities’ role as engines of entrepreneurship and innovation. The initiative builds on the success of the first edition of the programme, known as RISE 4.0, and continues to support young innovators in turning university-developed ideas into viable businesses.
The Faculty Exchange Programme is implemented by UNDP through the FUNGUO Programme, with support from the United Kingdom through the Foreign, Commonwealth & Development Office (FCDO). The partnership aims to strengthen Tanzania’s innovation ecosystem by connecting students with mentorship, financing, and opportunities to scale their ideas into sustainable enterprises.
Before the winners were announced, participating student teams received intensive training and mentorship from experts drawn from participating universities and ecosystem partners. The sessions focused on business ideation, startup acceleration, commercialization strategies, and building scalable ventures capable of competing in the market.
Six startups emerged as finalists from the programme. In order of ranking, the finalists were Vestis, Naarad, CropIQ, Carbon Trace, Ecofy, and Power Taka.
The grand prize winner, Vestis, a startup founded by students from the University of Dar es Salaam, received TSh 15 million in seed funding. The platform seeks to simplify the online buying and selling of clothes, helping users save time and transport costs associated with travelling to physical markets.
In addition to the seed funding, the startups will receive continued support through pitching opportunities, marketing and operational training, mentorship, and networking with ecosystem partners and potential investors.
Speaking during the award ceremony, Mr. Joseph Manirakiza, FUNGUO Programme Manager at UNDP, said the second edition of the Faculty Exchange Programme reflects UNDP’s continued commitment to nurturing innovation among young entrepreneurs in Tanzania.
“This second edition of the Faculty Exchange Programme builds on the success of the first edition, RISE 4.0. Through the FUNGUO Programme, UNDP has been supporting the growth of university-led innovation in Tanzania. So far, more than 70 student-led businesses from different universities have benefited from this initiative. Working together with partners such as the UK’s Foreign, Commonwealth & Development Office, we aim to expand the programme’s reach and create even greater impact in the future by supporting more young innovators to turn their ideas into sustainable businesses,” he said.
Also speaking during the event, Dr. Erasto Mlyuka, Technology Management and Transfer Manager at the Tanzania Commission for Science and Technology (COSTECH), reaffirmed the government’s commitment to supporting innovation and entrepreneurship among university students.
“The government strongly supports programmes like this that encourage innovation and entrepreneurship among students. Universities must begin shifting their approaches by equipping students with entrepreneurial skills so that they graduate ready to build companies, not just seek employment. I have been particularly impressed by the ideas presented by these students, including innovations in emerging sectors such as carbon-emission solutions. The government will always support such conversations and initiatives,” he said.
On behalf of the winning team, Kelvin Erasto, a representative of Vestis, said the seed funding will enable the startup to scale its operations and reach more users.
“This support will help us scale our platform and simplify our daily business operations as we work to reach more people. We also look forward to continued mentorship and training from university experts to strengthen our business model and accelerate growth,” he said.
The Faculty Exchange Programme, held under the theme “Universities as Startup Engines: Building Scalable Pathways from Knowledge to Enterprise,” positions higher learning institutions as critical drivers of innovation, commercialization, and enterprise growth. The programme convened universities, policymakers, and ecosystem partners for three consecutive days from March 4-6 at the Indian Institute of Technology (IIT Madras) Zanzibar campus to explore how higher learning institutions can play a stronger role in venture creation, commercialization of research, and the growth of innovation-driven enterprises in Tanzania and across East Africa.
By combining capacity building, mentorship, and seed funding, the initiative aims to strengthen the pipeline of university-born startups capable of creating jobs, solving development challenges, and contributing to Tanzania’s growing innovation economy.
