Tanzania's government is backing youth startups with tax incentives, financing schemes and support programmes to help overcome barriers to turning innovations into commercial ventures. Youth Development Minister Joel Nanauka said the administration would consider streamlining documents, policies and administrative procedures that prevent young entrepreneurs from accessing opportunities. He encouraged young people to monitor funding announcements and register on the Youth Empowerment System (YES) and Vijana Connect portal for access to loans, scholarships and international opportunities.
First-year income tax relief for eligible startups aims to preserve capital for product development, staffing and expansion, the Minister said. The Tanzania Commission for Science and Technology (COSTECH) is supporting innovators through grants, incubation support, technical assistance and investor connections. COSTECH-backed Novfeed, an aquaculture and organic fertiliser company founded by Diana Orembe in 2020, received a 10 million shilling grant. The company now has a factory producing 6,000 tonnes of fish feed annually, is valued at over 100 million shillings and employs 20 young people serving over 3,000 farmers and livestock keepers.
Arusha-based Imara Tech received a 20 million shilling grant from COSTECH to test its innovation, followed by 40 million shillings through the National Science, Technology and Innovation Competitions (MAKISATU). Founder Alfred Chengula said participation in a business platform in Finland helped secure an international investor, enabling production capacity to increase from 10 to 60 machines within 15 days. COSTECH Director General Dr Amos Nungu said the commission operates through multiple channels including Buni Innovation Hub, Dar Teknohama Business Incubator, and the National Fund for the Advancement of Science and Technology (MTUSATE).
MAKISATU has reached over 3,000 innovators, supported about 400 and helped establish 75 startups, according to MTUSATE senior officer Ntufye Mwakigonja. Last year, COSTECH partnered with CRDB Bank to create a financing window backed by guarantees through which 10 young entrepreneurs secured loans totalling 1 billion shillings. COSTECH also works with the Business Registrations and Licensing Agency (BRELA) to train innovators on intellectual property protection.