FUNGUO Deepens Support for Tanzanian Innovators Through $2.65M Funding Round
Strengthening Tanzania’s Startup Landscape
The FUNGUO Innovation Programme, a UNDP-led initiative supporting early-stage entrepreneurs in Tanzania, has announced an expansion of its startup funding portfolio with $2.65 million (TZS 6.5 billion) in catalytic capital. The move reinforces the programme’s mission to accelerate inclusive innovation and strengthen the country’s entrepreneurship ecosystem.
Implemented by the United Nations Development Programme (UNDP) in partnership with the United Nations Capital Development Fund (UNCDF), the Commission for Science and Technology (COSTECH), and other public and private sector stakeholders, FUNGUO focuses on providing both financial and technical support to startups tackling local and national development challenges.
The programme is funded by the European Union (EU), the Government of Finland, and the UK’s Foreign, Commonwealth & Development Office (FCDO).
$2.65 Million in Catalytic Funding for Early-Stage Ventures
The newly announced $2.65 million builds on previous rounds of funding that supported early-stage and impact-driven startups. The funding aims to reduce early-stage risk, enabling entrepreneurs to validate ideas, build traction, and attract follow-on investment.
In the latest phase, 13 new startups have joined the FUNGUO portfolio, bringing the total number of funded ventures to 74. These startups represent a range of industries, from agriculture and clean energy to digital services and green innovation. Each selected business will receive catalytic funding and tailored support to help them achieve measurable growth milestones.
Catalytic funding in this context refers to non-equity, performance-based grants that are designed to unlock additional private investment and promote sustainability beyond the initial funding stage.
Supporting Green and Inclusive Innovation
A key focus of the FUNGUO programme is #GreenCatalyst, an initiative supporting micro, small, and medium enterprises (MSMEs) in Tanzania’s forestry and green value chains. This includes startups developing sustainable solutions for climate resilience, renewable energy, and circular economy models.
The #GreenCatalyst initiative aligns with Tanzania’s broader climate and sustainability goals by helping rural entrepreneurs access finance, markets, and technical expertise. By prioritizing green innovation, FUNGUO seeks to combine economic opportunity with environmental impact.
Beyond environmental sustainability, the programme also emphasizes inclusive innovation. Priority is given to ventures led by women, youth, and persons with disabilities, as well as those operating in underserved regions.
Tangible Impact on Tanzania’s Innovation Ecosystem
Since its inception, FUNGUO has provided technical support to more than 2,200 entrepreneurs and MSMEs across the country. Before this expansion, 61 ventures had received direct catalytic funding, leading to the creation of nearly 5,000 jobs.
In addition to financial support, the programme offers capacity-building for incubators and accelerators, helping local organizations build stronger pipelines of investment-ready businesses. It also collaborates with government agencies to strengthen Tanzania’s innovation policy environment, including frameworks for crowdfunding, startup financing, and digital entrepreneurship.
Through these combined efforts, FUNGUO is helping position Tanzania as an emerging hub for early-stage innovation in East Africa.
Advancing a Sustainable Innovation Future
With this new $2.65 million funding round, the FUNGUO Innovation Programme continues to unlock opportunities for Tanzanian entrepreneurs and small businesses. By focusing on catalytic, inclusive, and sustainable innovation, the programme is building the foundation for a stronger, more resilient startup ecosystem, one that can generate jobs, attract investment, and drive long-term economic growth.
