Dar es Salaam. The FUNGUO Innovation Programme, implemented under UNDP Tanzania, has expanded its catalytic funding to a total of TZS 6.5 billion, marking a major milestone in advancing Tanzania’s innovation and entrepreneurship ecosystem.
Funded by the European Union (EU), the Republic of Finland, and the UK Government (FCDO), FUNGUO is dedicated to investing in innovation for a prosperous Tanzania.
The latest round of funding targets 13 high-potential startups and MSMEs from across the country—empowering them to scale impactful solutions, create decent jobs, and accelerate progress toward the Sustainable Development Goals (SDGs).
Speaking during the unveiling ceremony of the new investees on October 10, 2025, Dr. Blandina Kilama, Deputy Executive Secretary for Trade and Innovation at the National Planning Commission, commended FUNGUO’s contribution to national development priorities.
“The government aims to improve the ease of doing business so that starting and scaling a business in Tanzania becomes simpler, faster, and less expensive. The new Crowdfunding Guidelines are one example we need more such enabling policies,” said Dr. Kilama.
Representing the European Union Delegation to Tanzania, Mr. Marc Stalmans, Head of Cooperation, noted that Tanzania’s growth increasingly stems from the dynamism of its private sector.
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“The European Union firmly believes that sustainable development comes from the ingenuity and initiative of entrepreneurs. Through FUNGUO, we have proudly supported startups that are turning innovation into inclusive growth, job creation, and real opportunities for communities across the country,” he said.
The programme continues to nurture a vibrant ecosystem for impact-driven entrepreneurs by addressing systemic barriers to innovation, finance, and business growth. By de-risking startups and strengthening their capacity to attract follow-on investment, FUNGUO empowers entrepreneurs—particularly women and youth—to scale their solutions and drive inclusive economic transformation nationwide.
In his welcoming remarks, Mr. John Rutere, Deputy Resident Representative of UNDP Tanzania, emphasized the importance of catalytic investment in unlocking the country’s innovation potential.
“Investing in innovation is investing in Tanzania’s future. Through FUNGUO, UNDP is creating opportunities for entrepreneurs to design sustainable solutions that respond to local challenges, create jobs, and contribute to a more inclusive and prosperous Tanzania,” said Mr. Rutere.
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Alongside unveiling the new cohort of investees—raising the total number of startups supported under FUNGUO to 74—UNDP launched a new study titled “Catalysts for Growth: A Landscape Study of Entrepreneur Support Organizations in Tanzania,” developed in collaboration with Deloitte East Africa.
The event also featured the launch of a special FUNGUO edition of Atoms & Bits Magazine, celebrating innovation stories from across Tanzania’s entrepreneurial ecosystem.
