How Women-Led Startups in Tanzania Are Paving the Way Despite the Funding Gap.

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We're excited to dive into the world of women-led startups in Tanzania and why they’re worth paying attention to right now.

Women in Tanzania are rewriting the rules of entrepreneurship, but they're doing it with fewer resources and a lot more resilience. Let’s explore why.

The Funding Challenge: Women vs. Men.

Here’s the reality check: on the broader African continent, only about 6.5% of startup funding in 2023 went to women-led ventures.

Systemic barriers—think biases in investment processes and limited networking—still hinder women entrepreneurs from securing the capital they need to thrive. But here's the silver lining: they are incredibly resourceful, often relying on grants and bootstrapping to get their businesses off the ground.

In fact, many of the women-led startups that have raised over $1 million in Tanzania have done so through grants and prize money from competitions rather than traditional equity rounds, which has allowed them to retain a larger share of ownership in their companies.

Tanzania’s Funding Gap for Women Entrepreneurs.

In Tanzania's emerging startup ecosystem, women-led startups are not only underrepresented in the boardroom but also on the balance sheet. But the numbers don’t tell the whole story.

And even with limited funding, they’re making significant growth in key sectors like agriculture and sustainability.

The FUNGUO Innovation Programme is making impact by allocating 30% of its funds to women-led initiatives. Yet, the gap remains significant.

The reality of this gap is even clearer when looking at the top-funded startups this year. Top 3 Companies—none of which are women-led—have secured significant funding at the pre-seed and seed stages. This highlights the existing disparity and reinforces the resilience of women-led ventures that find alternative funding sources.

A Focus on Impact, Not Just Profit?

What sets women entrepreneurs apart? Their focus on creating products and services that address pressing social and environmental issues. In Tanzania, we’re seeing women-led startups tackle challenges in agriculture and sustainability, building businesses that not only drive economic growth but also create lasting impact in their communities.

Meet the Women Leading Change in Tanzania.

Lilian Makoi - Co-founder, Jamii Africa and MipangoApp.

Lilian’s ventures have collectively raised over $2.85 million to date. Jamii Africa alone has raised $750,000 in a seed round and $2 million in a venture round, while MipangoApp received up to $100,000 in non-equity assistance from Google for Startups. Her focus on financial literacy and accessible health insurance solutions is making an incredible impact across Tanzania.

Prisca Magori - Co-founder & CEO, Smart EFD

Prisca Magori stands out as a leading tech-enabled entrepreneur in Tanzania, co-founding Smart EFD to simplify tax compliance for businesses by enabling the creation of QR code-verified invoices across various devices.

Prisca’s recognition on the Forbes Africa 30 Under 30 list in 2024 marks a significant achievement, underscoring the resilience and drive of Tanzanian women in tech entrepreneurship. Her story exemplifies how women in Tanzania are breaking barriers, embracing technology, and making impact in business leadership.

Diana Mbogo - Founder & Managing Director, Millennium Engineers Enterprises Ltd.

Diana is making impact in renewable energy. With over $1 million raised for her renewable energy project, she exemplifies how women entrepreneurs in Tanzania are pushing forward with impactful, sustainable solutions despite limited funding access.

Diana Orembe - Co-founder & CEO Novfeed

NovFeed awarded $1 million through the Milken-Motsepe Innovation Prize Program for their sustainable agriculture solutions. By tackling issues in sustainable food production, they’re transforming agricultural practices and providing valuable resources to farmers.

Nancy Iraba - Co-founder & CEO, Healthy Seaweed Cafe

Nancy Iraba is leading innovation in sustainable nutrition through seaweed-based solutions. The cafe’s mission is to harness seaweed’s nutritional benefits to create accessible, healthy food options, while supporting coastal communities involved in sustainable harvesting. Healthy Seaweed Cafe has attracted multiple funding sources to advance its impact:

• February 2024: Received non-equity assistance from Bright Tide to support growth initiatives.

• Developp Venture Cohort 6 Grantee: Awarded €100,000 to further develop its operations and increase community impact.

Nancy’s work shows the commitment of women entrepreneurs in Tanzania to sustainable business models that offer both economic opportunities and environmental benefits.

Nisha Ligon - Co-founder & CEO, Ubongo Kids

Since co-founding Ubongo Kids in 2013, Nisha Ligon has transformed education across Africa through creative, localized media that empowers young learners and fosters positive social impact. Ubongo Kids now stands as Africa’s leading edutainment company, delivering impactful, accessible content that boosts school readiness and supports behavioral development for children and caregivers. Over the years, Ubongo has attracted notable funding:

• December 2022: Secured $27.8 million from the Lego Foundation’s Build a World of Play Challenge for the Akili Family project.

• April 2021: Awarded $60 million from the Varkey Foundation's Next Billion Edtech competition.

• January 2015: Received $75,000 in seed funding from Pearson following a six-month incubation.

Nisha’s work with Ubongo highlights the profound role of educational media in promoting lifelong learning and resilience, making a tangible difference for millions across Africa.

NGOs and Grants: A Path Less Traveled

Here’s a trend worth noting: many women in Tanzania are leaning toward creating NGOs or working with non-profits. Why? Because securing funds through grants can sometimes be more accessible than traditional investment paths.

This shift raises a bigger question: are these women being forced into the NGO space because of a lack of venture capital? Or could this be a smart pivot that allows them to address critical social issues while building sustainable businesses?

While NGOs play a vital role in social progress, are they hindering women's economic empowerment? The reliance on non-profit structures might limit opportunities for women to engage in the for-profit sector, which is crucial for sustainable growth.

The Bottom Line? 🌍

As we celebrate the achievements of women-led startups in Tanzania, we must also recognize the challenges they face in securing funding and resources. By advocating for equitable investment opportunities and supporting these resilient entrepreneurs, we can promote a more inclusive economic landscape that benefits everyone. The future is bright, and with the right support, these women will continue to lead the charge in Tanzania’s vibrant startup ecosystem.