This Week in Tanzanian Tech [Jan 7-13]
South Korea trains SGR operators, government attracts local investors, plus 9 other important headlines.
We're already 2 weeks into 2024. Let's keep the momentum going for the next 50.
In our 37th roundup of Silicon Bongo, we cover the biggest stories of January 7–14. My goal is to help you make informed decisions. Whether you're an early adopter or work in the physical and digital worlds.
Welcome to Atoms & Bits!
Let's jump right in.
IDEA OF THE WEEK
TOP 5 HEADLINES
1. Dawa Mkononi Secures Funding for Expansion
Dawa Mkononi (DM), a Tanzanian B2B e-commerce platform for medicines, has secured seed funding from a group of prominent investors. However, the amount remains undisclosed. And the health-tech industry began fundraising in 2023, which was one of the toughest years in global startup history.
According to CEO Joseph Paul, MD, the round saw participation from Sanofi and Pontem Ventures, a Mauritius-based VC firm owned by Generics Pharma, Karimjee Group, Credable Group, and inalipa.
Other co-investors are Villgro Africa (a Kenyan health-tech incubator), Axian Group (which owns TiGO Tanzania), and long-time backer Warioba Ventures.
DM's impact is undeniable. Operating in a country with more pharmacies (14,045) than healthcare facilities (8,000), they've already onboarded 2,200 drug dispensing outlets and offer 2,800 medicine varieties. Notably, their B2B e-commerce app had generated $3.7M in revenue by 2023.
Dawa Mkononi started operations in 2020 with a physical pharmacy in Kariakoo, Tanzania's largest market, which draws 200,000 people daily. DM is a perfect example of how doing business in Africa necessitates being present in both the worlds of atoms and bits.
It also intends to enter markets similar to Tanzania. Dawa Mkononi has the potential to improve Africa’s pharmaceutical supply chain. After all, Germany’s DeveloPPP Ventures gave Dawa Mkononi a TZS 250 million grant almost a year ago. DM also received other grants from the United Nations Capital Development Fund (UNCDF), Catalytic Africa, Cencora, and the Bill & Melinda Gates Foundation totaling over TZS 500 million.
I listed Dawa Mkononi among Tanzania's hottest startups and health tech pioneers in 2022.
2. Neurotech Brings Pure Python to Tanzania with Local Event
Neurotech, a leading Tanzanian AI startup, teamed up with technical skills trainer Binary Labs to host a national Python meetup on January 13. This event, held in Dar es Salaam, connected Python enthusiasts of all levels to explore the computer programming language beyond basic features and frameworks.
In addition to its authoritative software blog and unique events, Neurotech Africa is renowned for Sarufi, its developer-focused conversational AI platform for African languages.
Who conceived the Py event, and how? In late December 2023, Neurotech CEO Kalebu Gwalugano noticed a gap: "Pure Python," he explains, "the kind used to build marvels like Instagram and Dropbox, is often underutilized, reduced to basic tasks or Javascript-like coding." The developer community, particularly in Tanzania, needed intense discussions around mastering Python for software development.
The event was open to all “Pythonistas,” regardless of skill level. Beginners were welcome to learn from the community, while seasoned coders could share their insights and expertise.
A day before the meetup, Neurotech hosted another successful event—an X space featuring Elisha Bulalu, a lead blockchain developer at AI agent creator Orbofi. This session explored diffusion models and attracted an engaged audience.
Diffusion models, in simple terms, learn to create new data by gradually adding noise to existing data. And then learning to reverse that process. The technique is gaining popularity for generating realistic images from almost any text. And has the potential to create other high-quality creative content, such as music.
3. Railway Corporation Prepares for SGR Launch with Korean Training
Tanzanian railway experts are getting ready for the launch of the country's US$10.4 billion standard gauge by studying electric train operations in South Korea.
The knowledge exchange program ensures smooth and efficient service when the first phase of the SGR starts rolling in July. It will connect the commercial center of Dar es Salaam with Morogoro and the capital city of Dodoma.
The team from the Tanzania Railway Cooperation (TRC) gained valuable insights into modern train driving techniques, maintenance procedures, and safety protocols during their visit to South Korea. This practical experience will be instrumental in training the local workforce to operate the high-speed electric locomotives that will soon redefine passenger and freight transportation in Tanzania.
4. Rwandan Milk Processing Goes Cross-border with Tanzania MoU
On Thursday, Rwanda and Tanzania signed a Memorandum of Understanding (MoU) in Zanzibar. The MoU aimed at strengthening cooperation between both countries in developing their respective dairy industries.
General (Ret.) James Kabarebe, Rwanda's Minister of State for Foreign Affairs, and Hon. Abdallah Hamis Ulega, Tanzania's Minister for Livestock and Fisheries, inked the agreement.
What is the opportunity here?
Technical advisors from Rwanda could train Tanzanian farmers in improved husbandry practices. On the other hand, Tanzania's land and livestock resources could support the expansion of Rwandan processing companies.
Joint research in animal genetics and disease control could further strengthen the region's dairy backbone.
Harmonized standards and streamlined cross-border trade protocols could pave the way for even more investors to engage with the East African dairy scene.
After all, Tanzania has the 4th largest cattle herd in Africa. And Rwanda is a regional champion in efficient processing. The MoU could propel both nations to dairy dominance.
There are numerous additional opportunities for innovative dairy solutions. From mobile milk collection apps to solar-powered processing units, the possibilities are almost endless.
Data Highlights:
Tanzania: Average milk yields are around 2000 kg/cow/year (vs. Rwanda's 4000 kg).
97% of Tanzanian milk is consumed by the household or marketed locally.
Rwanda plans to increase milk production by 34%.
90% milk from cattle, mostly low-yielding, informal markets
4th largest cattle herd in Africa, but 99% indigenous breeds.
Milk yields average around 2000 kg/cow/year, with large variations.
The dairy industry’s issues include seasonal feed shortages, limited land for grazing, and inadequate access to automation.
Rwanda is the largest East African dairy player. It's set to build a $38 million powdered milk factory.
Rwanda is on a path to significantly reduce milk loss. Thanks to a €38 million Polish loan for milk cooling systems.
5. Startup Launches Program to Empower Insect Farmers and Boost Sustainable Agriculture
Tanzanian agritech LIMA (previously known as Samaki Farms) announced its Out-grower Program, based in Dar es Salaam.
The startup tackles two major challenges: food waste and expensive fishmeal used in livestock feed. Their solution? BSF larvae. The insects convert organic waste into nutritious protein for chickens, fish, and even pets. This reduces reliance on unsustainable fishing practices and lowers feed costs for farmers, while also creating valuable organic fertilizer.
As a Lima outgrower, here’s what you get:
Free training: The startup will equip you with the knowledge and skills you need to successfully raise BSF larvae. Lima Africa provides a comprehensive 6-day training program at its Madale facility, covering everything from larvae rearing to grow house setup.
Guaranteed income: The agritech buys all your BSF larvae, ensuring a steady income stream. And you won't worry about fluctuating market prices.
Be part of the solution: Contribute to a more sustainable future by reducing food waste, lowering farming costs, and promoting climate-friendly agriculture.
But who can join the program? Below are the criteria.
Have a reliable source of organic waste, like kitchen scraps, fruit and vegetable peels, or fish offal, to feed your BSF larvae.
Dedicate yourself to a 6-day intensive training program.
Have space and the ability to set up a grow house for your BSF larvae.
Please click here for more information and to apply.
6. Tanzania Offers Tax Breaks to Attract Local Investors
The Tanzania Investment Center (TIC) is offering tax breaks and other incentives to encourage local investors. The campaign, which is being conducted in collaboration with Clouds Media, is aimed at promoting investment in Tanzania and supporting the country's economic growth.
TIC’s National Investment Campaign includes interviews with Tanzanian investors to learn about their backgrounds. And the role the government has played in assisting their businesses.
The following are some major announcements and revelations made during the campaign:
By 2025, Tanzania intends to attract new local investment projects worth Sh38 trillion.
Tanzanians who invest in the honey industry are eligible for a tax exemption on all machinery and equipment used in production and processing.
The TIC also offers a discount on customs duties for all machinery and equipment imported by local investors.
For instance, the government is offering a 75% discount on customs duties for the importation of truck heads for Tanzanian investors who want to enter the transportation sector.
The Tanzania Investment Center will provide free matchmaking services for local investors who are looking for partners.
TIC Director General Gilead Teri said that the campaign is designed to "make it easier for local investors to succeed." He added that the government is committed to supporting local investment and creating jobs.
John Mwakasungula, the manager of JB Hotel in Tabora, said that his hotel is one of the beneficiaries of the TIC's tax exemptions.
"We were able to import machinery and equipment for our hotel at a significant discount," Mwakasungula said. This helped them reduce costs and become more competitive.
Mr. Teri said that the TIC is committed to helping local investors succeed.
"We want to make it as easy as possible for local investors to start and grow their businesses," Teri said. "We believe that local investment is essential for Tanzania's economic growth."
Salum Khamis Salum, the managing director of Jambo Foods Products, said that local investment is essential for Tanzania's economic development.
"The best investment for any country is local investment," Salum told Clouds. "Foreign investors can play a role, but local investors are the ones who can create the most jobs, boost the economy, and improve the lives of ordinary people."
TIC is a one-stop shop for business registration and licensing, acquisition of permits and approvals, as well as inclusion in government databases.
ADDITIONAL HEADLINES
According to TanzaniaInvest, the Dar es Salaam Stock Exchange (DESE) reported a total weekly turnover of Sh6.45 billion. That’s an increase of 407.36% from the previous week. The most traded stocks of the week were CRDB, NMB, and TICL (the Tanzania Chamber of Commerce, Industry and Agriculture Investment Company Limited).
The Tanzania Investment Center (TIC) transitioned into an integrated public institution that provides investors with access to services from 12 government agencies and ministries.
These are the Business Registration and Licensing Agency (BRELA), Tanzania Revenue Authority (TRA), National Identification Authority (NIDA), Tanzania Bureau of Standards (TBS), National Environment Management Council (NEMC), Occupational Safety and Health Authority (OSHA), plus the Tanzania Medicines and Medical Devices Authority (TMDA).
Other are the Tanzania Immigration Department, Tanzania Electric Supply Company (TANESCO), Ministry of Lands, Housing and Human Settlements Development; Ministry of Labour, Employment and Social Security; and the Ministry of Agriculture.
The Tanzania Investment Centre (TIC) reported a 60% increase in new project registrations in just one year since the implementation of the new Investment Act, 2022. The surge is driven by local investors, whose projects now comprise half of all new registrations, compared to 20-30% in 2022.
TIC’s Gilead Teri attributes the growth to the Act's simplified procedures and focus on fostering a favorable environment for Tanzanians with investment ideas. The Act has streamlined registration, making it easier for anyone to approach TIC for assistance.
Below are the results.
Project registrations: 273 in 2022 to 504 in 2023, an almost double increase.
Investment value: 5.6 billion USD in 2023, up from 3 billion USD in 2022 and 2 billion USD in 2021.
Job creation: Over 100,000 new jobs are expected from 2023 projects.
Key sectors driving the growth include industry, agriculture, transport, mining, tourism, and construction.
A massive new industrial park in Tanzania's Coast Region promises to strengthen the local economy and create thousands of jobs. Set to open its doors in the Mlandizi District, the park will:
i) Span 1,077 acres: Enough space for 202 plots, including 200 factory sites, two power stations, commercial areas, and community services.
ii) Employ at least 200,000 residents, with direct employment reaching 30,000 upon completion.
iii) Boost national income: Through increased production, tax revenue, and job creation.
The impact is expected to be significant. Why? Phase one alone has already created Sh35 billion in economic activity, according to Daily News. 200,000 additional jobs are projected indirectly for surrounding communities.
Construction of the industrial park began in 2021, with 10 plots already purchased by investors. 24 more are in the final stages of negotiation. In addition, three factories have begun construction, and five others are set to break ground this year.
The park has already seen the completion of key infrastructure, including a gate, perimeter fence, police station, administrative block, and a 54-megawatt power station. It will be divided into 210 plots, including space for 202 factories, two power stations, two commercial areas, three community services, a dry port, and road networks.
Mlandizi’s new mega-project is a collaboration between the government and Kakama Company Limited. It marks a commitment to private sector-driven industrial development in Tanzania.
The Tanzanian High Commission in the UK and the London Stock Exchange (LSE) have agreed to collaborate on accessing capital for various sectors in Tanzania.
The High Commission aims to increase Tanzanian exports to the UK and Ireland to $700 million by 2027, up from $200 million in 2023, according to Daily News.
However, collaboration with stakeholders like farmers, miners, and traders will be crucial in achieving the target. A dedicated meeting is planned in March 2024 to educate Tanzanian businesses on available opportunities. For example, Tanzanian products entering the UK market will enjoy a 98% tax exemption.
Tanzania's focus on economic diplomacy is a refreshing and effective approach to securing middle-income status.
CONCLUSION
Thanks for checking out the 37th update on Tanzania's innovation ecosystem.
Just a reminder: technology goes beyond writing lines of code!
I believe more African founders should explore "atoms-based" innovations—the kind that involves manufacturing goods, not just digital code. That's why you read more news updates from the Tanzania Investment Center (TIC) today.
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