Tanzania’s Startups Look Beyond Borders

Tanzania’s startups are beginning to see themselves as regional players. In 2024, delegations participated in the Korea-Africa Summit, signing agreements with the Korea-Africa Foundation to open investment and technology transfer channels. On the domestic front, Zanzibar and Mainland Tanzania signed a memorandum of understanding to integrate their startup policies, signaling an ambition to create a unified national ecosystem (Tanzania Startup Ecosystem Status Report 2024).

Regional opportunities are vast. The African Continental Free Trade Area (AfCFTA), when fully operational, could unlock significant trade and investment flows across the continent. For Tanzanian startups, harmonized rules and tariff-free markets mean access to millions of new consumers and businesses. The World Bank estimates that AfCFTA could lift 30 million Africans out of extreme poverty and boost Africa’s income by US$450 billion by 2035 (World Bank, 2020). For digital startups, especially those in fintech, logistics, and e-commerce, the agreement offers the potential for cross-border expansion at scale.

Energy integration offers another dimension. The Eastern Africa Power Pool (EAPP) is working to connect national grids, and Ethiopia’s GERD project is expected to export electricity to Tanzania and other neighbors. Cheaper and more reliable power is a critical enabler for startups, particularly those in manufacturing and energy-intensive industries. However, Reuters reports that Africa still faces a US$108 billion annual infrastructure financing gap, particularly in transmission and logistics, which remains a constraint for regional scaling (Reuters, 2023).

For Tanzania to take advantage, its startups must be prepared for export. This requires not only capital but also technical assistance in market research, compliance, and cross-border payments systems. Policymakers can play a role by supporting startups in navigating AfCFTA frameworks and investing in the logistics and digital infrastructure that make cross-border commerce viable.

International exposure is growing, European development finance institutions, U.S. agencies, and Asian venture funds are already present in Tanzania. But scaling from domestic relevance to continental competitiveness requires deliberate action. Without infrastructure investment, investor confidence, and policy execution, Tanzania risks remaining on the margins of Africa’s digital economy rather than at its core.