The Tanzania Startup Association (TSA), in collaboration with Alpha Capital, successfully hosted a webinar on the theme “The Role of the National Venture Capital Fund in the Tanzanian Startup Ecosystem.”

The event saw participation from over 70 industry leaders including startups, government, development partners, capital providers and stakeholders of that startup ecosystem.

 The webinar featured distinguished speakers, including Mr. Samwel Ndandala, Partner at Deloitte, and the Acting Director of Business Development at the Dar es Salaam Stock Exchange (DSE), Mr. Emmanuel Nyalali. The session was hosted by Mr. Zahoro Muhaji, CEO of TSA, and Mr. Imani Muhingo, Head of Research & Financial Analytics at Alpha Capital. 

The discussion focused on the critical role of the National Venture Capital Fund in addressing the funding gap, accelerating growth and innovation within Tanzania's startup ecosystem. Key topics included the current state of the startup ecosystem, the existing challenges and capital deficiencies faced by startups, and the tax regime surrounding venture capitalism in Tanzania.

 The speakers also provided insights from the DSE’s incubatory programs and discussed the potential structure and benefits of the fund to the capital markets.

 Emphasis was placed on urging the government to establish a clear National Venture Fund structure and ensure its effective implementation to address funding gaps for startups in Tanzania. Stakeholders also highlighted the need for targeted incentives for both startups and investors, including measures to address tax-related issues. 

Access to finance is a critical challenge to startups, and TSA through a series of policy dialogues in colaboration with stakeholders like the Tanzania Venture Capital Network (TVCN), co-organized a Ministerial Public-Private Dialogue on alternative and innovative financing for startups in May 2022.

 This event brought together stakeholders from various sectors, including government agencies, development institutions, private sector leaders, startup companies, and capital providers to discuss the funding gap in Tanzania’s startup ecosystem.

 Key outcomes from the dialogue included urgent recommendations to establish a National Venture Capital Fund and the development of a government-backed investment company to provide technical and financial support through blended financial instruments.

 There was also recognition of the need for innovative and alternative financing to bridge the existing finance gap for startups in Tanzania. This webinar provided a great platform to discuss and explore the National VC Fund and its impact on the startup ecosystem. 

Following successful discussions, stakeholders also insisted on establishing performance metrics for the proposed Fund, with a particular emphasis on ensuring its sustainability, making it unique from other existing traditional empowerment schemes. This webinar provided a great platform to discuss and explore the National VC Fund and its impact on the startup ecosystem. 

Wrapping up the webinar, Mr. Zahoro said, "These discussions are essential toward creating awareness to the public and holding the Government accountable.

 We hope to have more series of dialogue and engagements on the VC Fund immediately after the Government issues the specific regulations that guide the establishment and operation of the fund."