This Week in Tanzania [Dec 17–23]
Startup association meets the President, MV Mwanza nears completion, PM highlights transport progress, and more!
SPONSOR SPOTLIGHT
DotSyndicate has generously sponsored this week's roundup! It's one of the leading digital agencies in India and Tanzania. You can read my July case study to discover how it works.
INTRODUCTION
Hello there,
Congratulations on (almost) reaching the end of 2023. From December 17 to 23, here's a rundown of everything you need to know about Tanzanian innovation and investment opportunities.
This week has seen a lot of activity in the transportation sector. We'll look at three stories in that category. And six others in various industries, including the creator economy. But first, read our weekly quotes.
After the 9 headlines, you’ll find must-attend events in the first quarter of 2024. And discover two new startups to watch, both backed by Fondation Botnar and the Ifakara Health Institute.
Let us begin.
QUOTES OF THE WEEK
Let's hear from Iyinoluwa Aboyeji, who cofounded Andela (in 2014) and Flutterwave (in 2016). His two tech startups have a collective valuation of $4.5 billion, or bigger than Sierra Leone's GDP in 2018. Aboyeji’s VC fund, Future Africa, has $30 million assets under management (AUM). Here's what he says about exits:
“Five years is the appropriate amount of time for staying in an African technology company if you are an early stage or angel investor.”
“Anything beyond 5 years, and exit becomes a difficult and arduous process.”
“If the company doesn't make it to a plausible exit by year 5 you should write it down.”
Mr. Adoyeji urges investors to decide whether to cash out or stay invested in an African startup when it's 3-5 years old. You should only keep investments you are comfortable holding onto.
HEADLINES
1. Truck Tech Takes Root
Truck drivers in Tanzania can now register and pay their membership fees online. Anytime and from any location. Thanks to a digital system launched by the Tanzania Truck Owners Association (TATOA). It intends to rev up the trucking industry’s efficiency through digital records and payments.
“This move was warmly welcomed and supported by Prime Minister Kassim Majaliwa, who was the launch event guest of honor and system officiator,” revealed project sponsor Stanbic Bank Tanzania.
The bank has demonstrated its commitment to supporting TATOA's digital transition. Through its "Biashara Exchange," the bank will assist in importing trucks from China. It will also offer vehicle loans and insurance to members of the association. As if that wasn't enough, Stanbic plans to use its Biashara Incubator to create capacity-building programs that improve trucking even further.
2. Government confirms MV Mwanza to set sail in March 2024
MV Mwanza, Tanzania's “largest marine vessel” according to Daily News, is nearly finished and set for testing in March 2024. The 92.6-meter ferry will connect people and goods across Lake Victoria, plus boost trade and travel between Tanzania, Uganda, and Kenya.
What it can do:
Carry 1,200 passengers, 400 tons of cargo, 20 cars, and 3 trucks. It's also equipped with elevators and facilities for people with special needs.
Sail from Mwanza to Bukoba, then expand to other ports like Jinja, Kisumu, and Musoma.
Create jobs and improve livelihoods for farmers, fishers, and tourism businesses.
What's left to do?
Finish installing furniture and decorations inside.
Test the engines and navigation systems.
South Korea-based GAS Entec to hand over the vessel to Tanzania's Marine Services Company Limited (MSCL) in May 2024.
MV Mwanza-Hapa Kazi Tu was built right in Tanzania, with over 200 young people gaining skills during construction, according to Daily News.
3. PM revealed key transportation sector stats
At the launch of TATOA’s digital database, Prime Minister Majaliwa revealed statistics showcasing the progress in Tanzania's transportation sector. Here are some highlights:
Over the past three years, the government has constructed 2,183.82 kilometers of new paved roads and upgraded an additional 14,348 kilometers to gravel standards. This improved road network facilitates smoother and faster intra-country movement.
The amount of cargo entering the country through ports increased by an average of 18% in three consecutive years, from 18 million tonnes in FY 2020/21 to 25 million tonnes in 2022/23.
The TPA has reduced delays at the Dar es Salaam port from 14 days to 6 days.
95% of port cargo volume is transported to the final destinations overland by trucks.
The government has heightened aviation capacity by expanding terminals at the Julius Nyerere International Airport (JNIA) and the Kilimanjaro International Airport (KIA) parking lot. In addition, it has added a 181-passenger Boeing jet to the fleet of Air Tanzania Company Limited (ATCL).
4. Startup Association Meets President
Some board members, management, and staff of the Tanzania Startup Association (TSA) had a debriefing session with Hon. President Samia Suluhu at the State House “Ikulu” in Dar es Salaam on December 20.
“President Samia has promised to address the challenges facing startups,” TSA revealed in an X post.
Association CEO, Zahoro Muhaji, on the other hand, noted, “For our ecosystem; We have come a long way and today we have arrived here. We will go even further, but this meeting has given us renewed energy.” The high-level dialogue is set to propel a better Silicon Bongo.
5. TSA successfully held its 2nd annual general meeting in Dar es Salaam
On December 19, the Tanzania Startup Association hosted its second annual general meeting (AGM) at the five-star Johari Rotana Hotel. It convened founders, policymakers, and other stakeholders in Silicon Bongo.
CEO Zahoro Muhaji expressed his satisfaction, stating that the association is "turning out to be what we envisioned then."
The AGM highlighted key priorities such as a focus on the overall ecosystem, transparency, good governance, credibility, national and member interests, reliable partnerships, and enabling growth within the tech industry.
Eng. Kundo Mathew, Deputy Minister for Information, Communication, and IT graced the meeting. And TSA awarded am honorary membership certificate to Ambassador Ami Mpungwe, Tanzania’s first High Commissioner to South Africa. He went on to say, "It further inspires me to dedicate more time and energy to influence policy, legal, fiscal, and regulatory regimes that are supportive of early 4IR (fourth industrial revolution) adoption in Tanzania."
6. Zanzibar Seeks Energy Independence
Zanzibar inked a deal with Australia-based PowGex Energy for a 450MW wind farm project, spread across Unguja and Pemba islands. This follows a May agreement for a 180MW solar power project, pushing Zanzibar's total planned renewable capacity to 630MW. That's way beyond current needs. And aims to break the archipelago’s reliance on mainland Tanzania's electricity.
It will also reduce Zanzibar’s reliance on tourism as the fundamental economy driver. Excess power will fuel industrialization and lead to potential electricity exports.
7. Asha Abinallah Champions Ethical AI on Global Stage
Tech & Media Convergency (TMC), participated in Meta's Voice & Expression Forum in Cape Town, South Africa. The event connected 25 representatives from over 15 countries to discuss challenges related to freedom of expression and social media users' right to privacy.
It covered various topics, including: content moderation and internet shutdowns in times of crisis, responsible AI development and governance, and innovative uses of social media in the protection of vulnerable groups.
Asha D. Abinallah, TMC’s CEO, spoke about the importance of developing artificial intelligence in a way that is fair, accountable, and transparent.
8. TAIN, UNCDF, and partners to unlock the power of local angels
Potential angel investors in Tanzania gathered at the Westerwelle Startup Haus (WSH) Arusha for an information session hosted by the Tanzania Angel Investors Network (TAIN), which is launching an accelerator programme in 2024.
TAIN provided valuable resources and networking opportunities that empowered participants to apply for the accelerator and become successful angels.
The Tanzania Angel Investors Accelerator is a collaborative effort between the Serengeti Business Angels Network (SBAN), Ennovate Ventures, European Union, and UNCDF Tanzania. It aims to bridge the gap between promising local startups and the capital needed for growth. Arusha’s info session served as an introduction to the Accelerator program by highlighting the key benefits for aspiring angel investors.
9. Bonus
Today, some of Tanzania's most prominent creators and freelancers organized a pay-per-entry meetup in Dar es Salaam. The key takeaways will be shared in next week's roundup.
STARTUPS TO WATCH
Courtesy of the Morogoro-based Ifakara Innovation Hub (IIH).
Mchongoo - Develops an informal services marketplace.
Wote Stove - Converts waste engine oil into a clean cooking fuel.
UPCOMING EVENTS
1. January
Agro-Dairy & Poultry East Africa Trade Show (Jan 26-28, 2024): This international exhibition showcases advancements in agriculture, aquaculture, dairy farming, irrigation, poultry & meat production, livestock, and tractors.
2. February
Tanzania Energy Cooperation Summit (TECS) (Jan 31-Feb 1, 2024): TECS brings together stakeholders to discuss and promote sustainability, renewable energy access, gas utilization, industrial decarbonization, and electricity generation in Tanzania.
The Z-Summit (Feb 21-22, 2024): Connects key players in Zanzibar's tourism industry with East African investors and international travel agents.
3. March
Worldview Education Fair - Dar es Salaam (Mar 7, 2024): Provides an opportunity for students, parents, and educators to explore educational options offered by local and international institutions.
4. Bonus
Tanzania Energy Congress (Sep 11-12).
CONCLUSION
The 2020s are an excellent time to start, work at, or invest in a Tanzanian startup.
Please contact me via isai@atomsandbits.co.tz, if you need assistance or have any suggestions.
Also, remember to read my Silicon Bongo column every Tuesday in The Citizen newspaper.
Kazi iendelee!