This Week in Tanzanian Tech [Jan 5-11]
10 important updates
A lot happened in the first workweek of January 2025.
Here's your weekly roundup of the top stories from the worlds of fintech, telecoms, transportation, and higher education.
1. Is Tanzania the Next Startup Hotspot in East Africa?
Tanzania secured $53 million in early-stage company financing during 2024, placing it 7th among African nations.
Notably, $40 million of that amount came from NALA's Series A round.
East Africa secured $725 million total, accounting for one-third of all funding raised on the continent. Kenya led with 88% of the region’s funding, but Tanzania's $53 million indicates growing investor interest. Other neighbouring countries, including Uganda ($19 million), Rwanda, Sudan, and Ethiopia, also showed activity, suggesting a broadening market for innovation.
Our mid-year analysis, which appeared in Atoms & Bits Magazine (1st issue), tracked approximately $1.48 million raised by Tanzanian startups from January to June. We highlighted key funding sources like the Mastercard Foundation EdTech Fellowship, develoPPP Ventures Program, and raises by companies like MazaoHub.
Data from the Tanzania Startup Association (TSA) reveals that most Tanzanian startups are in the pre-revenue stage (69.4%), with the majority located in Dar es Salaam (56.5%). Angel investors, development partners, and government funds play a leading role in supporting these early-stage ventures.
We believe Tanzania can utilize its geographic and economic situation to attract more investment in sectors like fintech, agriculture, and renewable energy.
After all, the country’s startup ecosystem has shown resilience despite a dip in 2023 ($48.4 million) from 2022 ($80.6 million). The 2024 figures, including NALA's substantial raise, indicate renewed investor confidence and growth potential.
2. Tanzania Moves Towards a Cashless Economy with New Banking Regulations
The Bank of Tanzania (BoT) has eliminated charges on card transactions at point-of-sale (POS) machines. Why? To promote digital payment adoption and promote a cash-lite economy.
This initiative may encourage consumer trust by prohibiting surcharges. But it also raises concerns about potential impacts on small merchants and pricing structures.
Furthering its commitment to fintech innovation, the central bank has opened applications for its FinTech Regulatory Sandbox for the first quarter of 2025. Financial technology companies and innovators can submit their products and services for testing in a controlled environment until January 22nd.
Successful applicants will be notified within 30 working days after the application window closes. BoT launched this quarterly initiative in 2024 to expand digital financial inclusion and ensure that emerging technologies are effectively integrated into the formal financial system.
In line with promoting digital financial services, the BoT has also prohibited banks and financial institutions from imposing charges for internal account transfers, effective January 1, 2025. This move aims to reduce costs for customers.
3. Can Tanzania Be a Top 5 African Investment Hub?
The Tanzania Investment Centre (TIC), in collaboration with the Tanzanian Embassy in Japan and the Embassy of Japan in Tanzania, will host the second Tanzania-Japan Business and Investment Forum (TJBIF) on January 14, 2025, at the Johari Rotana Hotel in Dar es Salaam.
It follows the Japan-Tanzania Business Forum held on July 8, 2024, during the Dar es Salaam International Trade Fair (aka Sabasaba).
TJBIF 2025 aims to promote business and investment opportunities between Tanzania and Japan by encouraging partnerships and exploring avenues for mutual economic growth. It will focus on priority sectors such as finance, construction, information technology, logistics, manufacturing, agriculture, mining, energy, and trading.
The forum follows a recent online debriefing session conducted by H.E. Ambassador Baraka Luvanda for a delegation of approximately 60 Japanese companies preparing for a four-day mission to Tanzania from January 12–15, 2025.
During the session, Ambassador Luvanda highlighted Tanzania's strategic advantages, including abundant natural resources, a growing market, and a friendly business climate.
He also emphasized the government's commitment to streamlining business processes and creating a welcoming environment for foreign investors. This delegation's mission is part of the Tokyo International Conference on African Development (TICAD) project, which seeks to improve economic ties between Japanese public and private sectors and their African counterparts.
The upcoming forum is expected to further strengthen these efforts and attract significant investment to Tanzania.
In fact, the government has set an ambitious goal of attracting 1,500 new investment projects worth $15 billion by December 2025. Why? To become a top-five investment destination in Africa.
As of December 2024, the Tanzania Investment Center (TIC) had already registered 901 projects valued at $9.31 billion. Reaching its 2025 target would require a 61% increase in the number of projects and a 60% increase in value.
To further stimulate investment, the government plans to introduce a new investment law and simplify compliance processes.
4. Government to Enforce Strict Penalties for Data Protection Non-Compliance from May 2025
Tanzania's Personal Data Protection Commission (PDPC) has extended the registration deadline for data processors and collectors to April 30. It’s an important move for the country's digital compliance scene.
The extension comes as over 1,600 institutions have already registered through the official system.
PDPC Director General, Dr. Emmanuel Mkilia, announced comprehensive enforcement measures that will take effect from May 1, 2025.
"The PDPC will collaborate with law enforcement agencies to take decisive action against non-compliant institutions," Dr. Mkilia stated, emphasizing that registration must be completed through the Registration and Compliance Management Information System (RCMIS) on the PDPC's website.
The extension aligns with President Samia Suluhu Hassan's digital transformation agenda, following her April 2024 directive for institutional compliance.
"Safeguarding personal data is not only a legal obligation but also a crucial component of Tanzania's digital transformation agenda," Dr. Mkilia explained, highlighting the broader national implications of data protection compliance.
Institutions failing to meet the new deadline will face stringent penalties under the Personal Data Protection Act, including substantial fines and enforcement actions.
This final extension period aims to ensure comprehensive registration across all sectors handling personal or sensitive data in Tanzania.
5. TTCL to Expand High-Speed Internet Coverage in Rural Areas
Tanzania’s National ICT Broadband Backbone (NICTBB) could reach 139 districts by June 2025. Hence, representing a major advancement in the country's digital transformation journey.
The Tanzania Telecommunications Corporation Limited (TTCL), which manages NICTBB, is spearheading this nationwide expansion to improve connectivity and promote socio-economic development.
"The expansion of NICTBB services is a major step in ensuring that every Tanzanian, no matter where they live, has access to reliable and affordable internet," states Eng. Maryprisca Mahundi, Deputy Minister for ICT. "This will boost economic opportunities and drive development, particularly in rural areas."
The initiative, aligned with Tanzania's National ICT Policy, aims to transform digital service access across education, healthcare, and commerce sectors. This strategic expansion is a crucial step toward creating a stronger digital economy in Tanzania.
6. First of Ten EV Battery Stations Opens in Dar
AG Energies has established one of Tanzania's first electric battery swapping stations. The renewable energy company, founded in 2015, is now accelerating an important shift in the country's transportation sector.
Its new facility, which enables quick battery exchanges for electric vehicles (EVs), primarily targets two- and three-wheeled (2&3W) vehicles.
"We will formally launch the project in April this year," the AG told Atoms & Bits. The company plans to expand to 10 stations across Dar es Salaam by mid-2025.
Key industry stakeholders at the unveiling included representatives from the Tanzania Electric Mobility Association (TAEMA) and Chaja Africa. The battery swapping technology allows drivers to replace depleted batteries within minutes. It provides a practical alternative to traditional charging methods.
AG Energies will reveal additional details about its vehicle lineup and business model during Q2 2025.
7. Startup Unveils EV Charging Network
WAGA Motion has launched an EV charging pilot project. It aims to address a pressing need for accessible charging infrastructure, which is a critical hurdle for EV adoption in Tanzania.
The pilot includes distributing cost-effective slow chargers to selected EV owners, thus enabling real-world testing and feedback on charging behavior. A flagship charging station at Mlimani City serves as a testbed for innovative software that integrates real-time charging availability and mobile payment systems.
Recognizing grid stability challenges, WAGA plans to incorporate renewable energy solutions, such as solar and wind, into their charging infrastructure. These steps improve reliability and support Tanzania's growing shift to sustainable energy.
The startup’s effort complements government initiatives to establish a national EV policy framework aimed at regulating EV imports, usage, and taxation.
WAGA wants to drive Tanzania into an electric and sustainable future. One charge at a time.
8. Are Honda EVs Ready for Tanzanian Roads?
Honda, a Japanese automaker, has unveiled its highly anticipated 0 Series electric vehicles (EVs), set to debut globally in 2026. The lineup, which emphasizes affordability and cutting-edge technology, will first launch in North America, with plans to expand into other regions, including Africa, Asia, and Europe.
While there is no official confirmation about the availability of the Honda 0 Series in Tanzania, Honda's commitment to global market penetration indicates that you could soon access these innovative EVs. Why? Tanzania is witnessing growing activity in e-mobility and sustainable transportation solutions.
The Honda 0 Series is expected to feature compact designs, efficient batteries, and smart connectivity, making it an attractive option for emerging markets where urban mobility and affordability are key concerns. If introduced, these EVs could offer the nation’s upper middle class a clean and cost-effective alternative for daily commutes.
Stay tuned for updates as Honda reveals more about its regional rollout plans and how they align with Tanzania's e-mobility ambitions.
9. What Can Tanzanian Innovators Learn from CES 2025?
The Consumer Electronics Show (CES) 2025 has showcased innovations with potential impact for Tanzania's growing tech market.
The annual Las Vegas event highlighted developments in sustainable energy, mobility, and digital solutions.
What you should watch out for is listed below.
Affordable and Sustainable Mobility
Aptera Solar Vehicle: A solar-powered, three-wheeled car that eliminates the need for frequent charging. With up to 40 miles of range on solar energy alone, it offers an eco-friendly transportation solution for regions with high sunlight exposure, like Dodoma.
Xpeng AeroHT Flying Car: While futuristic, this flying vehicle hints at the possibilities of reducing congestion in rapidly urbanizing cities such as Dar es Salaam.
Renewable Energy and Charging Solutions
Ugreen Nexode 500W Desktop Charger: A multi-port, high-capacity charging solution that could address the need for efficient energy use in Tanzanian homes and offices.
Anker 140W Wall Charger: Designed with power stability in mind, this charger could benefit areas with irregular electricity supply.
Health and Wellness
Dexcom Stelo Glucose Biosensor: A device for monitoring glucose levels without prescriptions, suitable for addressing growing health awareness in Tanzania.
Nékojita FuFu: A quirky mini-robot that cools beverages instantly, appealing to Tanzanians looking for simple, daily conveniences.
Smart Home and Automation
Lutron Caseta Smart Shades: Affordable smart home solutions like these automated shades can be a step forward for urban dwellers adopting smart living concepts in Tanzania.
Roborock Saros Z70: A quiet and efficient robot vacuum cleaner could appeal to growing middle-class households seeking convenient home maintenance tools.
CES 2025 demonstrates how global tech trends, from sustainable energy to smarter living, can find practical applications in Tanzania’s context. With increased awareness and infrastructure development, we believe these innovations could play a role in improving the lives of Tanzanians in both urban and rural areas.
10. UDOM Tests Digital Exam Entry
The University of Dodoma (UDOM) has strengthened examination security by piloting digital verification tickets alongside student IDs.
Its Senate-approved system aims to reduce impersonation and ensure only registered students access exam halls.
Students downloaded examination permits through UDOM's SR2 platform from January 2nd for tests held January 7-9th. The pilot focused on three first-year courses with large enrollments: Development Studies, Communication Skills, and Introduction to Information Technology.
The SR2 platform cross-checks student registration status and examination eligibility in real-time. It can also immediately flag any irregularities to invigilators. This digital layer prevents common fraud attempts (i.e., fake ID cards) and speeds up examination hall entry for the university's large student populations.
Modernizing academic operations not only saves the institution time but also sets an exam integrity benchmark for 48 other Tanzanian universities to follow.