1. Youth Agri-Tech Challenge Launched
Heifer Tanzania and Sahara Ventures have launched the AYuTe Challenge for 2024 nationwide. The competition is aimed at supporting young agricultural entrepreneurs between the ages of 18 and 35. It seeks innovative solutions that can address issues in Tanzania's agriculture sector.
AYuTe provides a total cash prize pool of $20,000. The first-place winner receives $10,000, the second-place winner receives $7,500, and the third-place winner receiviles $5,000. In addition to money, the winners will also receive mentorship and support from industry experts at Sahara Ventures.
To be eligible, participants must have an established or registered business in Tanzania that is less than 3 years old. The startup should focus on providing agri-tech solutions that address challenges in crop production, livestock, fisheries, or forest and natural resources management.
Applications for the AYuTe Africa Challenge Tanzania 2024 are open until June 30th, 2024. (The original application form at https://bit.ly/AYuteAfriChallengeTZ is closed for submissions. We may need to contact Sahara for more information.)
2. New Tax on CNG Vehicles Introduced
In December 2023, the Egyptian energy and utility provider TAQA Arabia launched Tanzania's first integrated compressed natural gas (CNG) filling station and conversion center under the brand name "Master Gas."
The facility is expected to serve up to 800 vehicles daily. It also marks the beginning of a series of 12 stations to be developed by TAQA in the coming years, with a total investment exceeding 10 million USD.
Fast forward to last week, the Government of Tanzanian (GoT) introduced a new tax of TZS 382 ($0.15) per kilogram (kg) of compressed natural gas (CNG) used in motor vehicles. This brings the total cost of CNG to TZS 1,932 ($0.74) per kg. That represents a 393% increase, which is almost four times the original amount.
GoT expects this new tax to generate approximately TZS 9.5 billion ($3.6 million), which will be managed under the country's Roads Fund Board. The aim is to ensure that all vehicle types, including those using CNG, contribute equally to road maintenance, similar to vehicles that use petrol or diesel.
Some examples of how other countries are supporting their CNG sectors include:
Egypt: Allocating funds to establish more CNG refueling stations nationwide, with over 800 conversion centers already in place and 500,000 cars converted to CNG.
Costa Rica: Financing the Payment for Environmental Services (PES) program, which compensates landowners for conservation efforts and sustainable practices.
Brazil: Funding the National Climate Change Policy to promote sustainable agriculture, forest conservation, renewable energy projects, and combat deforestation.
United Kingdom, Germany, Denmark, and the Netherlands: Using revenue from energy taxes to finance offshore wind energy projects for clean electricity generation.
Experts recommend that Tanzania consider implementing similar measures to support the growth of the CNG sector while simultaneously raising funds for road maintenance.
3. Electric Ride-Hailing Debuts in Tanzania
Bolt, in partnership with TRÍ and Watu Credit, has launched Tanzania's first electric vehicle (EV) option for ride-hailing. It features TRÍ's electric three-wheelers (E3Ws), which provide several benefits over CNG and fuel combustion engine vehicles. These include:
Lower electricity prices when compared to fuel.
Operating cost of TZS 30 per km, or TZS 3,000 for 100 km.
Reduced maintenance, with locally available spare parts.
Zero emissions, compared to 5.44 tonnes (CNG) and 10 tonnes (fuel combustion) of pollutants per year.
Electronic control unit (ECU) with over 10 years of efficiency.
Complete solution with automated features and IoT modules for tracking.
This partnership marks a major milestone in transforming Tanzania's mobility scene and promoting electric vehicle adoption.
In a related development, Tanzania is exploring the procurement of electric buses manufactured by Uganda's Kiira Motors Corporation (KMC) for the 8-year-old Dar es Salaam Bus Rapid Transit (DART) system.
During the 2nd Uganda-Tanzania Business Forum held from May 23-24 in Dar, KMC unveiled its all-electric Kayoola EVS Model 2024.
Kayoola offers a range of low-floor bus models suitable for urban mass transportation. With a single charge, the Kayoola EVS can cover between 200 to 300 kilometers. As a result, it is well-suited for daily urban transit operations.
4. Mobile Medical Testing Units Deployed
Dar-based startup LyfPlus is rolling out mobile testing units for outpatients across Tanzania.
According to the health-tech, approximately 80% of the 25 million outpatients who visit health facilities annually in Tanzania require medical testing during their initial visit. These tests are crucial for chronic patients or those undergoing long-term treatment. However, regular checkups are necessary to assess treatment effectiveness, medication response, and disease progression.
So, what problem is the health-tech solving? In a regular hospital setting, the service ratio of physician appointments to medical testing is 1:3, indicating that each patient requires at least three tests per visit.
LyfPlus' mobile testing units are equipped with tele-consultation capabilities. They allow providers to perform procedural medical investigations and assert condition diagnoses remotely. This enables patients to receive comprehensive care without the need for multiple visits, long wait times, or extra costs related to traveling to health facilities.
Context by William Andrew Mduma.
5. Local Climate Initiative Receives International Grant
Climate Hub (CH) Tanzania has been announced among the nine winners of a $275,000 grant pool at the Bonn Climate Change Conference 2024.
The conference, which focuses on global climate change issues, recognized CH's efforts to support climate action in Tanzania.
CH engages with local communities, schools, and businesses to encourage sustainable practices and reduce greenhouse gas emissions.
Its $25,000 grant allocation will provide critical funding for continued climate change awareness, education, and mitigation.
6. Angel Investment Report Released
On June 13, the Serengeti Angels Network (SBAN) published a “Feasibility Study Report on the Tanzania Angel Investment Landscape.”
Key insights from the report:
Tanzanian angel investors could potentially invest $1 million per year in pre-seed and seed-stage startups.
SBAN plans to increase its membership fee from $100 to $200 in 2024, reflecting the growing value of its network.
The World Bank (WB) estimates Tanzania's early-stage funding gap at $1.3 billion to $2.6 billion each year. This means tons of promising startups are struggling to get off the ground.
The Tanzania Angel Accelerator (TAA) program will offer two levels of training to educate and empower business angels.
Dar es Salaam is set to be a major center for angel investing. It is home to 60% of participants in SBAN’s Tanzania Angel Accelerator (TAA) training program.
There are 600 potential angel investors in Tanzania, with 120 (20%) ready to make investments in the next 3-5 years. This shows a growing appetite for supporting local entrepreneurs.
The Trevor Noah Foundation named founders of Silabu, SmartDarasa, ShuleYetu, and Taifa Technovation to its Education Changemakers program.
Thanks for reading our 58th weekly roundup of Tanzania's innovation ecosystem!