The EU-backed UNDP’s FUNGUO Innovation Programme and the CRDB Bank Foundation's flagship programme IMBEJU have teamed up to change the trajectory of Tanzanian startups and innovative SMEs.

This strategic collaboration aims at to exploring the best ways to boost financing for Tanzanian startups by blending financial instruments offered by the two programmes. 

According to a joint statement issued by the programme implementers yesterday, the goal is to amplify means to empower entrepreneurs with both catalytic grant funding and flexible, patient and cost-effective financial solutions.  

FUNGUO, supported by the European Union through the Business Environment, Growth and Innovation (BEGIN) programme and the British Government through the Africa Technology and Innovation Partnerships (ATIP) initiative, has been instrumental in providing catalytic funding to impact-driven ventures. 

Since its inception, FUNGUO has invested over 3.8bn/- in 43 Tanzania Startups and innovative SMEs, contributing towards creating and sustaining over 4000 direct and indirect jobs for Tanzanian young men and women. 

The programme’s mission is to increase the number of successfully scaled innovation ventures that contribute to the Sustainable Development Goals in Tanzania. 

In a conscious effort to encourage and promote women innovators and entrepreneurs, an increase to 40 percent, from last years’ 30 percent budget quota, has been exclusively reserved for women-founded or women-led ventures.  

“FUNGUO investees do not only benefit from financial support, but also targeted and demand-driven technical assistance, broad visibility and exposure, as well as linkages to other potential funders,” the statement said. 

On the other end, IMBEJU offers a distinctive sustainability funding approach that integrates capacity building, financial literacy, and entrepreneurship skills development to empower marginalized and unbanked communities in Tanzania. 

Through its revolving grants, IMBEJU not only provides financial support but also equips youth, women entrepreneurs, and special groups with the necessary tools to transform their innovative and scalable business ideas into thriving ventures with significant societal impact. 

This holistic approach ensures that beneficiaries gain the skills and financial inclusion needed to become economically self-sufficient, driving long-term growth and sustainability in their communities.

Speaking at the Third Call for Applications Launch, Dr. Amos Nungu, Director General of the Tanzania Commission for Science and Technology (COSTECH), highlighted the government’s dedication to supporting initiatives like FUNGUO. 

"The government of Tanzania is committed to supporting programmes that create employment opportunities for our youth. Over the past 3 years FUNGUO programme and Imbeju have been on the frontline to support our efforts to propel development, by promoting innovation and entrepreneurship. 

Dr Nungu further stated "Great entities joining forces through partnerships like the one between FUNGUO and the CRDB Bank Foundation sets a powerful example of how collaboration can drive extraordinary outcomes. The government strongly encourages such efforts, as they align with our national goals to foster innovation and economic growth. We urge more stakeholders to embrace this approach and work together to support and strengthen the entrepreneurial ecosystem in Tanzania."

Christine Grau, the European Union Ambassador to Tanzania, remarked on the significant impact this initiative will bring and the European Union’s dedication to supporting Tanzania.

 "The European Union is dedicated to developing a business environment that promotes growth and innovation in Tanzania. FUNGUO programme is a testament to our dedication to supporting Tanzanian entrepreneurs in achieving their full potential, and we are excited to see positive results that this new approach will bring to the startup ecosystem in Tanzania," she said.

Shigeki Komatsubara, UNDP Resident Representative for UNDP Tanzania, highlighted UNDP's commitment to empowering young people through diverse initiatives. 

Komatsubara stated "UNDP is dedicated to unlocking the potential of young people by supporting and scaling start-ups and innovative MSMEs that subsequently results to job creation for women and youth, increased income generation, and ultimately, sustainable and inclusive development in Tanzania. We are committed to continue our support for the Government in achieving inclusive and sustainable development, and our partnership with CRDB Foundation is one testament to the many efforts we are making and will continue to make as development partners." 

Tully Esther Mwambapa, Managing Director of the CRDB Bank Foundation, emphasized the transformative potential of this partnership for youth startups. 

"The IMBEJU programme is deeply committed to empowering the next generation of Tanzanian entrepreneurs. By integrating capacity building, financial literacy, and entrepreneurship skills development, IMBEJU is not just offering financial support; we are providing a comprehensive ecosystem that nurtures young talent. This partnership with FUNGUO amplifies our efforts to create a supportive environment where youth-led startups can thrive. We believe that by equipping young entrepreneurs with the tools they need, we are laying the groundwork for a vibrant and sustainable entrepreneurial landscape in Tanzania," Mwambapa said.

While introducing the FUNGUO Programme to the audience that attended the launch, Joseph Manirakiza, the Programme Manager, highlighted its holistic approach to supporting entrepreneurs. 

"FUNGUO is not just about funding; it's about providing a comprehensive support system that includes technical assistance, mentorship, and networking opportunities while supporting the Tech and Innovation Ecosystem. Our goal is to empower Tanzanian entrepreneurs to overcome challenges while exploring all means possible to achieve sustainable growth. Strategic partnerships like this one with CRDB Foundation draw us a step closer to unlocking the full potential of the Tanzanian startups and innovative SMEs," he explained.