1. DM Secures Additional TZS 594.4 Million from German Institution
Dar-based health-tech startup Dawa Mkononi (DM) has secured EUR 200,000 in non-dilutive capital from DEG Impulse through their develoPPP Ventures program. This latest funding, announced last Tuesday (July 30, 2024), will support the company's R&D efforts and expansion into new communities in Dar es Salaam.
The investment caps off a remarkable first half of 2024 for DM, during which the company nearly doubled its revenue compared to the entire previous year. This growth has been driven by regional expansion and considerable operational changes, such as improvements to its Buy Now, Pay Later (BNPL) model for healthcare facilities.
Dawa Mkononi also recently signed agreements with an undisclosed bank to enable instant stock financing for medicines. This streamlines the startup’s lending process and improves cash flow. The company has also piloted OpenAI's API to transform customer procurement predictions, inventory management, and credit scoring.
DM’s latest success builds on a series of earlier funding rounds. In June 2024, the company received a CAD 50,000 (TZS 97.9 million) research grant from Villgro Africa and the International Development Research Centre (IDRC) to study e-pharmacy solutions in Tanzania. April this year saw Dawa Mkononi become the first recipient of impact-linked funding from SEAF's Daraja Impact program, while January brought seed funding from a consortium including Sanofi's Global Health Unit Impact Fund and local venture capitalists.
Founded in 2020, Dawa Mkononi aims to improve pharmaceutical distribution across Tanzania. The company now serves over 1,000 healthcare businesses in Dar es Salaam alone and plans to reach 3,500 health facilities and pharmacies by 2025.
2. President Recognizes “Mkanda Salama”
Tanzanian health-tech startup Afya Lead Limited received prestigious recognition last week at the Mkapa Legacy Summit, with co-founders Franc Mussa Israel and Paschal Thomas Kija accepting an award from the current President of Tanzania, also known as Mama Samia. This high-profile acknowledgment comes as a major milestone for the young company.
Founded in 2022, Afya Lead is rapidly gaining traction with its flagship product, Mkanda Salama. What is it? A locally-made device designed to arrest postpartum hemorrhage (PPH), a leading cause of maternal mortality in Tanzania. The product's development was inspired by Mussa's personal loss of his sister to PPH, driving him to create an affordable and accessible solution.
Clinical trials at Ifakara Referral Hospital demonstrated Mkanda Salama's effectiveness, with an 84% improvement in clinical symptoms across PPH categories. The device stopped mild PPH cases within 10–20 minutes 100% of the time, while showing promising results for moderate (70.3%) and severe (63.5%) cases in the same timeframe.
Afya Lead's innovations extend beyond Mkanda. The startup has developed Pamoja Bima, a mobile app simplifying health insurance registration and access, and Mama Salama Delivery Pack, which provides essential items for sanitary childbirth.
The startup's progress has been marked by a series of accolades:
Winner of the 2022 MAKISATU competition in the university category
Top prize at the 2023 PesaTech accelerator program, securing $10,000 in funding
Victory in the 2024 Global Student Entrepreneurship Award (GSEA) competition
Selection for the Vodacom Digital Accelerator (VDA3) program, culminating in a win at the recent demo day
AfyaLead’s success also shows the growing support for student entrepreneurship in Tanzania, with both public institutions like COSTECH and private sector players like Vodacom actively promoting innovation.
The startup could expand across resource-constrained settings in Africa and Southern Asia. It’s one to watch.
3. Mauzo Launch by Tunzaa
Tunzaa HQ, a Tanzanian fintech startup known for its "save now, buy later" platform, has expanded its offerings with the launch of Mauzo, a new digital marketplace and business management tool. This move, in my perspective, is a major pivot for Tunzaa, which has now evolved from a consumer-focused savings platform to a more comprehensive e-commerce ecosystem.
Key features of Mauzo include:
A digital marketplace connecting merchants to Tunzaa's existing user base of over 97,000 active paying customers
Business management tools for inventory tracking, sales management, and order processing
Integrated financial services access
Marketing tools including referral codes and in-app advertising capabilities
This expansion puts Tunzaa in direct competition with other e-commerce and business management platforms in East Africa, such as Jiji. However, Tunzaa's existing user base and experience with digital financial services could give it a competitive edge, especially in Tanzania, where digital commerce adoption is still growing.
The launch of Mauzo reflects wider trends in African fintech, where companies are increasingly bundling multiple services to create more comprehensive digital ecosystems. This approach, similar to what we've seen with companies like Flutterwave and Paystack, can help increase user retention and create additional revenue streams.
For Tunzaa, this move could significantly expand its market potential. While its original "save now, buy later" model targeted consumers, Mauzo opens up the B2B market, potentially accelerating the company's growth and increasing its valuation for future funding rounds.
4. Digital Economy Framework Launch
Tanzania has unveiled its Digital Economy Strategic Framework (DESF) 2024-2034. This comprehensive plan aims to utilize modern technologies to increase economic growth, create jobs, and improve citizens' livelihoods.
A key aspect of the DESF is the Tanzania Technology Stack, which includes the Jamii Number System for managing comprehensive data related to education, health, and financial transactions.
The framework also introduces a Community Payment System to facilitate digital financial transactions and reduce cash dependency. In addition, it establishes the Community Data Sharing System to improve data exchange across various sectors and ministries.
Another notable element is the Community Data Exchange Platform, designed to enable seamless information exchange between sectoral and governmental systems, enhancing overall data interoperability.
The framework emphasizes the need for a strong governance structure to support digital infrastructure, including the forthcoming National ICT Policy (NICTP) 2024, National Electronic Data Sharing and Exchange Guidelines, Tanzania Digital Public Infrastructure Blueprint (TDPIB) 2024, and the Tanzania Digital Interoperability and Standardization Framework (TDISF) 2024.
It puts Tanzania in line with other African countries that have launched similar initiatives, such as Kenya's Digital Economy Blueprint and Nigeria's National Digital Economy Policy and Strategy. However, Tanzania's approach seems comprehensive, covering a wide range of sectors and issues.
However, it's worth noting that similar initiatives in other countries have sometimes struggled with implementation. We should actively engage with the government to ensure the framework's goals translate into tangible support and opportunities for Tanzania’s innovation ecosystem.
5. Atoms & Bits Magazine Launch
We released our first-ever digital magazine. It provides a non-report, general look at Tanzania's tech ecosystem in 2024 so far.
Below are some key takeaways.
1. Funding trends: Tanzanian startups raised $1.48 million in the first half of 2024, with edtech and agritech receiving the most attention from investors. However, this represents a decline from previous years. Thus showing ongoing challenges in attracting venture capital.
2. Tech adoption: JavaScript and React are the most commonly used technologies among Tanzanian startups, with Amazon Web Services (AWS) being the preferred cloud provider. This insight can help new founders make informed tech stack decisions.
3. Emerging sectors: While fintech remains strong, there's growing interest in AI applications across industries, including the judiciary's adoption of AI for hiring and court transcription.
4. Geographic shifts: "Silicon Dar" is solidifying as Tanzania's tech district, concentrated along a 4.4 km stretch of Bagamoyo Road. However, efforts to develop tech clusters in Arusha, Mwanza, and Zanzibar are gaining traction.
5. Ecosystem challenges: The magazine highlights persistent issues like limited access to early-stage funding, a shortage of experienced tech talent, and the need for more supportive policies for fast-growing companies.
We prepared it as both a snapshot of the current ecosystem and a resource for anyone looking to understand or engage with Tanzania's tech scene/community. It's available for free download since we believe in knowledge sharing and collaboration as an inclusive development pathway.