More Financing for Startups as UNDP’s FUNGUO Programme pushes its commitments to over TZS 5 billion.

UNDP’s FUNGUO Programme, in collaboration with CRDB Bank’s iMBEJU initiative, proudly introduced its third cohort of 18 exceptional startups and SMEs in November 2024, signalling a significant step forward in nurturing Tanzanian entrepreneurship. This cohort, selected through a rigorous process from over 400 applications received nationwide, reflects the growing momentum of innovation in Tanzania. The funding pool, totalling TZS 1.45 billion in FUNGUO Catalytic Grants and TZS 355 million in iMBEJU Soft Loans, highlights the commitment to fostering businesses that drive job creation, empower youth, and advance the Sustainable Development Goals (SDGs).

This partnership combines the transformative power of FUNGUO’s non-repayable grants, funded by the European Union, with iMBEJU’s reimbursable grants, creating a robust support system for Tanzanian startups. With 40% of the funds allocated to women-led or women-founded businesses, the initiative reaffirming its dedication to gender inclusivity, recognizing the crucial role women play in driving innovation and economic growth.

The selected startups span diverse sectors such as agriculture, energy, healthcare, circular economy, and financial services, many leveraging technologies to tackle pressing societal challenges. These businesses are not only creating sustainable solutions but also generating employment opportunities, particularly for youth. FUNGUO’s impact speaks volumes past cohorts have collectively secured TZS 15.5 billion in additional funding and created over 4,000 direct and indirect jobs. The latest cohort is poised to build on this remarkable success.

In addition to funding, the startups will receive tailored technical assistance, exposure to showcasing opportunities, and support with investment profiling to fuel their growth and attract further financing. By fostering innovation and empowering entrepreneurs, FUNGUO and iMBEJU are paving the way for a thriving entrepreneurial ecosystem in Tanzania, driving the country’s economic and social progress.