A major boost is on the horizon for Tanzania’s innovation ecosystem as the UNDP backed innovation Programme unveiled two new funding opportunities aimed at catalyzing sustainable growth and unlocking the full potential of local entrepreneurs.

Launched over the weekend in Dar es Salaam, the new initiatives are part of a broader drive to support startups and micro, small, and medium enterprises (MSMEs) working in high-impact sectors—including climate resilience, forestry innovation, digital transformation, and inclusive economic development.

The Programme, co-funded by the European Union (EU), the Republic of Finland, and the UK’s Foreign, Commonwealth and Development Office (FCDO), is implemented by the United Nations Development Programme (UNDP) Tanzania. 

Since inception, the programme has supported 61 ventures, created over 5,000 jobs, and mobilized more than 15bn/- in follow-on funding.

Speaking at the launch, Karina Dzialowska, Head of Economics and Governance for the EU in Tanzania, described FUNGUO as a "cornerstone" of Tanzania’s innovation ecosystem.

“What began as a pilot four years ago has become a pivotal accelerator,” she said. “FUNGUO is providing essential technical assistance and catalytic funding to help startups grow and access broader financial opportunities. This new call is an incredible opportunity, especially for young women. Our goal is to award at least 40 percent of the grants to female entrepreneurs—but that depends on you applying.”

William Nambiza, Coordinator for Development Cooperation at the Embassy of Finland, reaffirmed Finland’s commitment to Tanzania’s green economy transition through the #GreenCatalyst Initiative, which complements the Finnish-funded Forest, Land Use and Value Chain Development (FORLAND) project.

“We’re investing in green jobs, protecting natural resources, and scaling forestry innovation,” said Nambiza. “We want to see more entrepreneurs—especially youth and women—take advantage of this funding to grow businesses in eco-tourism, bamboo products, digital forestry, and other sustainable sectors.”

The first call under the #GreenCatalyst Initiative targets MSMEs innovating within Tanzania’s forestry value chain. 

Businesses focused on eco-packaging, sustainable charcoal, forest-friendly agribusiness, and related sectors are invited to apply. The initiative prioritizes enterprises operating in Iringa, Njombe, Ruvuma, and Lindi, and offers catalytic grants ranging from 10m/- to 100m/-, along with tailored technical assistance, digital tools, and market access support.

 The second funding window is the 4th General Call for Funding, designed for post-revenue, impact-driven Tanzanian startups. These startups should demonstrate innovation in areas such as climate action, digital transformation, youth employment, and sustainable livelihoods. 

Selected ventures will receive non-equity catalytic grants, investment-readiness support, mentorship, and enhanced visibility within the national innovation ecosystem.

John Rutere, UNDP Tanzania’s Deputy Resident Representative, emphasized the programme’s long-term vision: “This is about building a resilient pipeline of businesses that solve real problems and drive sustainable change. With support from our partners, we have already seen what is possible—now, we aim to scale that impact further.”

Rutere added that FUNGUO’s model is designed to de-risk early-stage ventures, enabling them to attract private investment and contribute meaningfully to Tanzania’s development goals.

The initiative underscores a growing recognition that innovation—when coupled with inclusive finance and supportive ecosystems—can play a transformative role in tackling Tanzania’s most pressing development challenges.