AfricaPress-Tanzania: THE Tanzania Startup Association (TSA), has partnered with the Embassy of the Netherlands in Tanzania to strengthen the startup ecosystem in the country.
A startup is a newly founded business which is developing unique product or service, mostly innovative with potential to scale fast, which sets startup apart from traditional businesses.
On this partnership with the Netherlands, Zahoro Muhaji, Chief Executive Officer of the TSA stressed, “We are delighted to partner with the Netherlands who have recognized the work of TSA in supporting conducive business environment for startups in Tanzania. We are currently witnessing a growing momentum on the continent on adopting startup acts and policies. Mauritius, Tunisia and Senegal are the first African countries to have enacted specific startup laws.
A host of other countries, including South Africa, Ghana, Kenya, the Democratic Republic of Congo and Rwanda, are expected to implement their own this year. We would like to seize this momentum, because there have been a growing interest on start-ups as a solution to Tanzania’s growing youth unemployment,” he said.
The Dutch government has been a strong advocate of having vibrant, open and business friendly ecosystems for startups worldwide.
Ranked Number five in the 2020 G lobal Innovation Index, the Netherlands is home to more than 4000 startups benefiting from world-class incubators and an international business climate.
“Our goal is not only to strengthen our own ecosystem, but to also strengthen startup ecosystems beyond borders, including supporting a conducive legal and regulatory business environment for the growth of the Tanzanian startup ecosystem”. Startup legislation plays an important role in helping entrepreneurs solve challenges startups are facing,” he added.
He said it will also help inspire confidence, retain talent, foster innovation and sustainable growth, attract investment and provide access to funding and education.
A co-created and tailormade Tanzanian Startup Act could be one of the tools for empowering entrepreneurs and address key developmental issues, although case studies from other African countries show that it will require prolonged and widespread engagement with various stakeholders.
“With its unique and central position in the Tanzania startup ecosystem, we believe TSA could be an important backbone organization to bring together all relevant stakeholders in this process”, said Jeroen Verheul, Ambassador of the Kingdom of the Netherlands in Tanzania.
The Tanzania’s startup ecosystem has the potential to transform the lives and create new jobs for many (young) people.
The growth opportunities and investment options are however currently limited for startups in the country due to lack of access to finance, limited knowledge of statutory requirements, as well as limited business skills and continuity of support.
Furthermore, the regulatory framework continues to be a major bottleneck to a flourishing Tanzania startup ecosystem supporting startups with tailor made laws and policies.
Both parties signed a Memorandum of Understanding with the particular aim of advocating and promote a conducive legal and regulatory business environment for the further growth of the Tanzanian startup ecosystem.
The TSA was launched at the beginning of this year and serves as an umbrella membership- based organization with the goal of bringing together key players in the country’s startup environment.
