The Tanzanian tech startup ecosystem has undergone tremendous growth and development over the past decade. In the early days, the startup scene was small, with only a few entrepreneurs taking advantage of the opportunities presented by technology. However, over the years, the number of startups and investment in the sector has increased significantly, now boasting hundreds of startups.
The East African country with a population of 64 million, GDP of $67.48 billion, and internet penetration rate of about 50% of the nation’s population was ranked at number 114 on the global Startup Ecosystem, with Dar es Salaam, as its commercial headquarter ranked at 583 globally according to StartupBlink Map.
In the early 2010s, there were only a handful of tech startups in Tanzania. However, over the past few years, the number of startups has increased dramatically, and the ecosystem has matured. One of the main drivers of this growth has been the increasing availability of internet connectivity, as well as the growth of mobile technology. The widespread use of mobile phones and the growth of mobile networks have made it easier for entrepreneurs to start and grow their businesses.
Tanzanian Startup Funding
Additionally, in terms of venture capitalists’ activities in the sub-region, the Eastern African region has been showing great promise over the years, only coming second to West Africa in 2022. Also, the region has secured over $3.5 billion, which represents about a quarter of the total funding raised by African startups since 2019, with the vast majority of the funding raised in the region going to Kenya: with total funding since 2019 nearing $3 billion. However, of the 10 $50m+ deals recorded in Eastern Africa since 2019, 9 were in Kenya (the only outlier is Tanzania’s Zola Electric’s $90m round of September 2021). Tanzania along with Uganda are the only other two markets to have attracted more than $100m in total funding since 2019, according to the Big Deal Report.
Also, the Tanzanian tech startup which ranks #8 in the continent has been representing in terms of funding in recent time, raising $80 million (-16% YoY) through 11 deals in 2022, which fall short of its 2021, $96 million funding record.