Tanzania Startup Association CEO on how govt. can improve the start-up scene

The startup ecosystem in Tanzania is on the rise, with significant growth seen in recent years. Zahoro Muhaji, CEO of Tanzania Startup Association, spoke to CNBC Africa about the progress and challenges faced by startups in the country. The ecosystem, although relatively new, has shown impressive growth, with the number of startups increasing from just a handful to more than 40 or 50 in a short span of time. Notable successes include a startup that raised $35 million in an exit deal, showcasing the potential for growth and investment in the Tanzanian startup scene. Despite this growth, challenges remain, with only 30% of startups experiencing significant growth according to a survey conducted by the TSA. The impact of COVID-19 has been felt by startups, leading to funding constraints and delays in operations. However, Muhaji highlighted the resilience of startups in adapting to new challenges and technologies. To further support the growth of startups, Muhaji called for government support in the form of policies, laws, and fiscal incentives. In a positive development, President Samia Suluhu Hassan recently pledged support for the startup association and the ecosystem, signaling a potential shift towards a more conducive business environment for startups. Muhaji expressed optimism in the government's commitment to supporting startups, citing signs of progress under the new administration. Investment appetite in Tanzania has been seen in sectors such as renewable energy, tech startups, and agri-tech, with potential growth expected in other sectors like logistics. The recent acquisitions and mergers in the Kenyan startup ecosystem have set a precedent for similar developments in Tanzania, with startups like Coppergrass already attracting significant investments and acquisitions. Overall, the future looks promising for the Tanzanian startup scene, with increased investor interest and potential for further growth and acquisitions.