Beem and Sarafu at Visa Demo Day
Tech updates from Tanzania (Dec 1-7)
1. TSA Announces Deal Room, Presidential Keynote
The Tanzania Startup Association (TSA) is launching the country's first online deal room. Its goal is to connect local startups with investors year-round, starting from the Tanzania Startup Week scheduled from December 16-20, 2024 in Dar es Salaam.
During the Week, President Samia Suluhu Hassan is also expected to deliver the keynote address at the Tanzania Startup Investment Forum.
TSA’s five-day event features a structured program targeting different ecosystem priorities:
Days 1-2: Tanzania Startup Investment Forum focusing on investor-startup connections
Day 3: Skills development programming led by Sahara Ventures
Day 4: Digital transformation sessions organized by Smart Africa Group (SAG)
Day 5: TSA annual general meeting
The new deal room platform aims to address the startup funding gap by connecting pre-vetted Tanzanian startups with local, regional, and international investors.
TSA has built a database of over 500 potential investors, with more than 50 actively exploring the Tanzanian market. The platform includes:
Algorithmic matching based on sector, stage and funding preferences
Detailed startup profiles, including financials and business plans
Direct meeting scheduling capabilities
Year-round access for relationship building
Real-time metrics on engagement and investor interest
"Tanzania's startup ecosystem is growing at over 15% annually, attracting more than 200 investors in the past three years," noted Praygod Japhet from TSA during an information session last Friday.
The association aims to onboard 200 pre-vetted startups and 500 investors in the platform's initial phase.
TSA has established partnerships with over 10 technical assistance providers and 30 incubators nationwide to support startups in improving their investment readiness.
The deal room will facilitate continuous engagement through quarterly webinars and sector-specific events throughout the year, building toward the annual Startup Week.
On top of that, the investment forum is a huge step in formalizing startup-investor connections in Tanzania, with presidential participation indicating increased government attention to the sector's development.
You can register for the deal room through the official Startup Week website at www.startupweek.co.tz.
2. BoT Launches New Sandbox
The Bank of Tanzania (BoT) has announced its first regulatory sandbox for financial technology companies.
Applications open January 2-22, 2025, allowing fintech startups and financial providers to test new digital solutions under regulatory supervision.
The initiative builds on Tanzania's pioneering approach to financial innovation. In 2008, BoT's "test and learn" strategy enabled the launch of mobile money services that transformed financial access, growing from serving just 8% of adults in 2006 to over 60% today. The new sandbox applies this same philosophy to emerging technologies.
"We see the sandbox as crucial for local fintech startups to develop solutions for underserved markets," says Reuben Mwatosya, whose company Tembo is looking to test interoperable digital banking accounts for merchants. "Having a structured way to validate new ideas while ensuring consumer protection helps both innovators and customers."
The sandbox targets solutions not fully covered by current regulations, including:
Cross-border payment innovations for regional trade
Digital solutions for foreign visitors and businesses
Secure crypto and stablecoin applications for everyday use
Deputy Governor Sauda K. Msemo emphasized that applicants will be evaluated on their potential to improve financial inclusion. That’s a key focus since Tanzania's first FinScope survey in 2006 revealed 54% of adults were financially excluded. (6.4 million were excluded as of 2023.) Successful applicants will operate in a controlled environment for nine months while being monitored by BoT.
For companies to participate, they must submit detailed risk assessments and demonstrate:
Innovation using new or existing technology in novel ways
Clear plans to improve financial access or efficiency
Adequate consumer protection measures
Sufficient resources to conduct testing
Viable plans for commercial launch
The program structure reflects lessons from Tanzania's mobile money evolution, where collaboration between regulators and providers helped achieve interoperability in 2014. And made Tanzania the first fully interoperable mobile money market globally, according to an FSDT report.
The sandbox will run quarterly cohorts through BoT's Fintech Regulatory Sandbox Portal (frsp.bot.go.tz).
A dedicated team led by Dr. Sigsbert Rwiza will support applicants, building on the bank's history of nurturing financial innovation while ensuring stability.
3. Tech Education Initiative Expands
StartHub Africa recently launched its largest student entrepreneurship initiative to date, spanning 10 universities across six regions from Arusha to Zanzibar.
The Youth Ignite Student Founders Fellowship selected 30 ventures from over 1,000 applicants, with 20 teams securing funding and support after an intensive boot camp in Dar es Salaam.
The program structured entrepreneurial development in distinct tracks.
Tech teams focused on validating market demand through field testing, developing sustainable business models using Lean Canvas methodology, and refining product-market fit. Manufacturing teams worked on customer persona development, distribution strategies, and digital financial management using tools like Zoho.
Dawa Mkononi co-founder Joseph Paul kicked off the bootcamp by sharing practical insights on startup building. "Focus on solving real community problems rather than inventing challenges," he advised participants, emphasizing the importance of finding committed team members who believe in the vision even before financial incentives are available.
Among the standout innovations was a groundnut harvesting machine developed by Scolla Jonathan, a first-year undergraduate at Tengeru Institute of Community Development (TICD). Ms. Jonathan secured TZS 6 million to further develop her agritech solution, thus exemplifying the program's focus on practical innovations addressing local challenges.
The five-day bootcamp culminated in specialized training, as summarized below.
Tech startups: Financial feasibility analysis, core metrics development, and growth strategy planning
Manufacturing teams: Strategic milestone setting, compliance frameworks, and operational systems
Both tracks: Intensive pitch preparation and presentation skills
Beyond immediate training, Youth Ignite strengthens university innovation ecosystems by developing hub manager capabilities and creating lasting support structures. The initiative operates across major academic centers including:
The University of Dar es Salaam (UDSM)
University of Iringa
Institute of Accountancy Arusha (IAA)
The State University of Zanzibar (SUZA)
Winners will receive staged funding totaling 80 million shillings, paired with six months of continued mentorship through university breaks. The program runs from September 2024 to June 2025, with funding from UNDP Funguo, supported by the UK Government and European Union.
For universities and students interested in future cohorts, StartHub Africa’s Tanzania MD Shakila Mshana can be contacted directly for application details.
Other Headlines
4.
UNI-AID Africa made history last weekend with Tanzania's first women-only hackathon. It brought together 30 females in-person and 70 online participants to tackle challenges in climate action, mental health, and digital inclusion. The 24-hour event was the first phase of a wider initiative to strengthen women's participation in Tanzania's tech ecosystem.
The hackathon featured notable tech leaders sharing their journeys, including Kusiluka Aginiwe Justice from SmartDarasa (interactive learning) and Kalebu Gwalugano from Neurotech (conversational AI).
Participants developed solutions like Agrofarm AI Assist for agricultural optimization, MindEase for mental health support, and Afririse for digital inclusion.
"Our vision is to transform lives through education," UNI-AID Africa CEO Cypriano Kasese said in November. "We're creating pathways for African youth, especially young women, to pursue STEM opportunities.
The organization aims to expand the program as part of its larger mission to support 1,000 Tanzanian girls pursuing STEM education at top universities in the near term.
UNI-AID’s latest event also raised substantive debate around AI's future impact, with participants engaging in a midnight discussion on "Will AI replace more jobs than it creates in the next decade?" UNI-AID plans to scale the hackathon model across Tanzania's universities while strengthening connections between participants and industry partners.
For women in tech interested in future iterations, UNI-AID Africa can be contacted at impact@uniaidafrica.org. The next phase of the program will potentially feature expanded mentorship opportunities and technical training programs.
5.
President Samia has mandated all data processors and collectors in Tanzania to register with the Personal Data Protection Commission (PDPC) by December 31, 2024.
The directive, announced during the PDPC launch in April is being implemented under the Personal Data Protection Act 2022 and applies to both public and private institutions. 700 organizations had already complied as of November 26, according to government-owned publication Daily News.
The registration requirement is part of Tanzania's effort to strengthen digital privacy protections. Organizations must comply or face severe penalties, including fines and potential imprisonment for non-registration.
PDPC has been tasked with creating a comprehensive database of entities processing personal information to ensure proper oversight.
Organizations can access registration guidance through the Commission's website (www.pdpc.go.tz) or consult legal professionals for compliance support. The PDPC will oversee the registration process as part of its mandate to safeguard personal data in the digital age.
This initiative is Tanzania's first major enforcement action under the 2022 data protection law. It brings the country in line with global digital privacy standards.
Institutions are urged to begin the registration process early to ensure compliance before the year-end deadline.
6.
Last Monday, Tanzanian startups Beem and Sarafu showcased their innovations at the Demo Day for Visa’s Africa Fintech Accelerator (second cohort) in Cape Town, South Africa.
They were among 23 startups from across Africa, presenting to venture capitalists, angel investors, and ecosystem enablers after completing a 12-week intensive program.
Beem, a cloud communications platform operating in over 20 African countries, highlighted its growth in enabling businesses to engage customers via SMS, WhatsApp, and other channels.
Meanwhile, Sarafu, a Dar es Salaam-based digital commerce platform, demonstrated how its tools for inventory management, credit building, and digital payments are empowering over 12,000 retail businesses.
This cohort, which included startups from all four corners of Africa, shows how quickly African fintech is growing. Tanzanian representation in such programs indicates the country's rising stature in the tech ecosystem, often overshadowed by regional giants like Kenya.
The Accelerator is part of Visa's commitment to investing $1 billion in Africa by 2027. And it has now accelerated 45 startups since its inception in 2023. It offers mentorship, training, and funding opportunities to Seed to Series A companies.
As Aida Diara, Visa’s Senior Vice President for Sub-Saharan Africa, noted, "These startups are driving digital transformation and showcasing remarkable potential for growth and scalability."
For Tanzanian startups, we believe the journey doesn’t end here. With Beem’s focus on chat commerce solutions and Sarafu’s data-driven approach to retail marketplaces, both companies are set to utilize the connections and insights gained to expand their impact nationally and across the continent.