A vision for Tanzania's tech ecosystem and our growing readership
Ecosystem Barometer
Funding, digital services, and policy updates (July-October 2024)
Most Influential Technology Personalities
Who's shaping Tanzania's tech scene - from founders to content creators 08 Digital Tanzania
Cover Story: Reimagining Startup Support
Government tech initiatives and infrastructure progress 15
Tian Zhang on PesaTech's unique approach to fintech acceleration
The Rise of Sector-Focused Accelerators
Case study: From generic support to specialized programs
New Tech in Town
Latest innovations across finance, healthcare, agriculture & more
Startup of the Year: El-dizer
How a Maasai student built one of Tanzania's fastest-growing fintechs
Wakishua & Who's Who
Education paths and business models of 24 tech leaders NMB’s Evolving Startup Strategy
Infrastructure over incubation
Tanzania Banking Guide 2024
Eight Banks, Hundreds of Fees, One Clear Picture
18
EDITOR’S NOTE
Welcome to the second edition of Atoms & Bits Magazine. As Tanzania's innovation ecosystem evolves, so do we. Let me share some thoughts and updates:
Our audience is growing in unexpected ways. During Q3 2024, we reached over 95,000 people across our platforms. What surprises me isn't simply the numbers, but where our readers and listeners are coming from. Word-of-mouth has become our second-biggest source of new subscribers. That means you're not just reading; you're sharing.
What catches your attention? Our audience's tastes are diverse and sometimes surprising. On LinkedIn, a critique of a major telco's service topped the charts, suggesting that as we chase cutting-edge innovations, we can't neglect the basics. Meanwhile, Substack readers gravitated towards our product review of UTT AMIS and our exclusive interview with a fintech leader.
You're also drawn to broader narratives—our brief history of Tanzanian science in 2023 gained significant traction, as did our speculation on Zanzibar's potential as a future tech hub. This varied interest shows a hunger for both practical insights and big-picture thinking about our innovation ecosystem.
After all, Tanzania's research and tech funding is taking an unexpected turn. While venture capital (VC) has cooled globally, international development organizations (IDOs) are filling the gap. They're providing more than money. IDOs help founders develop their fundraising skills. This approach might make our startups more VC-ready in the long run.
Here are some beliefs that shape our coverage:
1. Startup valuation should take into account local economic conditions. A Tanzanian company valued at TZS 600 billion and operating solely within our borders could have the impact and reach equivalent to a global unicorn worth USD 1 billion. (1$ = Sh600).
2. The most successful businesses blend physical operations with digital solutions. It's this integration of 'atoms and bits' that often leads to products that influence lifestyles and workflows.
3. Our local market is larger than many realize. With over 62 million people, Tanzania offers a substantial testing ground. Successful startups here have the potential to scale across East Africa's 300 million-strong market.
4. Our education system's emphasis on theoretical knowledge can (someday) be an advantage in deep tech research and development (R&D).
These perspectives inform the stories you'll find in this issue—from fintech challenges and analyses of digital public infrastructure (DPI) to profiles of bootstrapped software startups.
Atoms & Bits has evolved into a multi-format content network. We're a newsletter, a quarterly magazine, a podcast, and soon, a dedicated knowledge site. You can find us on Substack, LinkedIn, X, Spotify, Apple Podcasts, and soon, atomsandbits.co.tz. Each distribution channel offers a unique way to learn about Tanzanian science and technology.
Our current reach, while growing, is just a fraction of the potential local audience. With over 800 startups, 9,600 foreign investment projects last year, 200 thousand annual ICT graduates, 1300 tech-related established companies, and dozens of researchers pushing boundaries in labs across the country, we have a wealth of stories yet to tell.
Isai Mathias
Editor-in-Chief, Atoms & Bits
This Magazine aims to close the gap between perception and reality in Tanzania’s business scene. Whether you're a professional, entrepreneur, investor, policymaker, or simply curious about where technology is taking us, there's something here for you.
Karibu tena.
Ecosystem Barometer
Trends Snapshot (July-October 2024)
FUNDING & GROWTH
After five attempts to get into Y Combinator and a co-founder leaving just before demo day, NALA secured a TZS 109 billion Series A round in July 2024. The raise comes after the company hit profitability and grew its customer base to nearly 500,000 users. For founder Benji, who once borrowed money to make payroll, this marks a turning point in an eight-year journey from concept to cross-border payments leader.
Other notable funding moves came from companies solving fundamental problems:
• MazaoHub secured $200,000 from Catalyst Fund and won $25,000 at the Africa AgTech Summit. The company's soil analysis and farm management software now helps 39,000 farmers make better planting decisions. It shows how deep agricultural expertise combines with technology to improve yields.
• E-commerce startup Dawa Mkononi, which has raised $2.3 million in seed funding to date, received additional grants (total redacted). Why? Its sales reached $5.4 million in the first ten months of 2024, up from $3.3 million in 2023. With a $200 average order value, the pharmaceutical distribution platform already helps 2,000+ healthcare businesses reduce costs while serving 300,000 patients in both urban and rural areas nationwide.
DIGITAL SERVICES
Tanzania's cyberspace is changing fast. Mobile subscriptions jumped from 76.6 million to 80.7 million in just three months (June-September), while 5G coverage expanded from 1% to 18% of the population. This growth is improving how we work and live.
Access by Region
Dar es Salaam has 14.8 million active phone lines. That count includes:
• Regular phone users (many with multiple SIM cards)
• Office telephones
• Home landlines
• Plus special SIM cards that help machines share information automatically—like when:
• A digital electricity meter sends your power usage to TANESCO
• A delivery vehicle's tracking device shows you its current location
Mwanza follows with 5.3 million phone lines, then Arusha with 4.9 million, Mbeya with 4.6 million, and Dodoma with 4.3 million. These high numbers make sense since both people and “smart things” need phone lines to work. For example, a bank branch needs desk phones for staff to talk to customers, plus their ATMs need special telecom subscriptions to connect with its main banking system. This is why one company or person often uses many telecom subscriptions counted by TCRA.
On another digital services front, the government-owned Tanzania Telecommunications Company Limited (TTCL) plans to link Tanzania with DR Congo via Lake Tanganyika and extend fiber to Mombasa, Kenya. That could potentially transform regional online commerce. Already covering over 100 districts, these connections could make Tanzania a key digital hub for East Africa.
EDUCATION & INNOVATION
Ardhi University's new Data Science and AI degree program arrives as the tech sector faces a talent shortage. The program, starting in 2025, focuses on practical skills alongside theory. Meanwhile, Kilimanjaro-based Manushi Secondary School's TZS 52 million ICT lab serves as a model for 5,900+ schools nationwide, showing how digital education is spreading beyond urban centers.
Five Tanzanian teams reached the top 30 in the African Youth in AI and Robotics competition, proving local talent can compete continentally. From livestock disease prediction to agricultural robotics, their projects approached real local challenges with global-standard solutions.
ACCELERATOR IMPACT
This quarter's accelerator programs focused on practical growth. PesaTech, supported by UNCDF and co-funded by the European Union, helped ten startups refine their business models and connect with partners like NMB Bank. Vodacom Digital Accelerator (VDA) took seven companies, including drone service provider Altitude X, to China for learning exchanges with tech giants.
Accelerator Success Recipe:
• Corporate partnership focus
• International exposure
• Practical growth support]
PARTNERSHIPS & POLICY
AzamPesa's collaboration with Tanzania Posts Corporation has turned 300 post offices into digital financial points, bringing modern services through trusted institutions. It's part of a broader trend where traditional infrastructure meets digital innovation.
The Digital Economy Framework 2024-2034 launched with concrete steps like the Jamii Number System for digital identity and new payment frameworks. Unlike previous policies, it includes specific implementation timelines and measurable goals. Continue
Most Influential Technology
Personalities (2024)
Tech influence in Tanzania spans entrepreneurs, researchers, content creators, and educators. Here's a data-driven look at who reaches the largest audiences across social media platforms.
Methodology
We analyzed prominence on LinkedIn, X (formerly Twitter), and YouTube, focusing on individuals who meet at least one of these criteria:
• Founded or run tech-enabled startups
• Invested in tech startups
• Lead tech-driven social ventures
• Conducted tech research at universities/institutes
• Create science/tech content consistently
Data was collected in October 2024 through manual verification of public profiles. We excluded Instagram metrics as the platform tends to favor entertainment content in Tanzania. We hope this compilation can help you find the right micro- or macro-influencer for your product or service.
Startup Founders & CEOs
• Faraja Kotta. Followers: 302.1K on X, 1.7K on LinkedIn. Company: ShuleDirect. Focus: Software-as-a-Service (SaaS) for secondary school students and teachers.
• Jumanne Mtambalike. Followers: 36.5K on X, 10K on LinkedIn. Company: Sahara Ventures. Focus: Startup accelerator and innovation consulting firm.
• Given Edward. Followers: 167K on X, 2.2K on LinkedIn. Company: Mtabe & Kinara Technologies. Focus: AI-powered learning platform for students without internet access.
• Benjamin Fernandes. Followers: 80.3K on X, 45.7K on LinkedIn. Company: NALA. Focus: Cross-border payments infrastructure for individuals and businesses sending money into Africa.
• Edwin Bruno.Followers: 21.3K on LinkedIn, 6.9K on X. Company: Smart Africa Group (SAG). Focus: : Venture building and digital media solutions including Rifaly, a news aggregation platform.
Firas Ahmad. Followers: 18.1K on LinkedIn, 2.2K on X.Companies: AzamPay, Sarafu, and AzamPesa. Focus: Facilitating trust in Tanzanian digital commerce.
Startup Founders & CEOs
Kalebu Gwalugano. Followers: 10.1K on LinkedIn, 4.4K on X Company: Neurotech Focus: Conversational and social commerce AI solutions for African languages, starting with Swahili.
Tech Content Creators
Gaiston Ngailo. Followers: : 15K+ on LinkedIn. Company: GetValue (part of VDA S2). Focus: Digital products marketplace for vendors and affiliate marketers.
Gillsant Mlaseko . Audience: 49.7K on X, 8.8K on LinkedIn. Content: Digital skills education. Focus:Helping people start and grow online businesses.
Joseph Paul. Followers: : 7.3K on LinkedIn. Company: Dawa Mkononi. Focus: Logistics and credit financing platform connecting health facilities
Tech Educators & Researchers
Dr. Jabhera Matogoro Followers: 49.7K on X, 8.8K on LinkedIn. Institution: University of Dodoma. Focus: Telecommunications engineering and AI research.
Neema Mduma, PhD. Followers: 26.9K on X, 14.1K on LinkedIn. Institution: Nelson Mandela African Institution of Science and Technology (NM-AIST). Focus: Machine learning applications in
Tech
Project Leaders
Kenny Mmari Snr. Followers: 167K on X. Focus: Impact communication and industry analysis.
Followers: 130.1K on LinkedIn. Role: Operations Manager, Smart Lab. Focus: Tech project management and innovation hub
Snashtz. Subscribers: 100K on YouTube Content: Swahili tech reviews and analysis. Focus: Smartphones, computers, and smart home devices.
Baraka Mafole. Audience: 51.8K people on X. Content: Freelance/creator economy. Focus: Marketing technology and digital economy insights.
• TOTTechs. Followers: 47.6K on X. Content: Tech advisory platform. Focus: Hardware and software reviews in Swahili.
• Tanzania Tech. Subscribers: 26K on YouTube. Content: Tech industry news and education. Focus: How-to videos videos in Swahili.
Explore with Bertin. Subscribers: 19.7K on YouTube, 344 videos. Content: Real estate and urban exploration. Focus: Neighborhood tours, construction projects, and undiscovered places across Tanzania
Ally Msangi. Audience: 16.5K on X. Content: Freelance/creator economy. Focus: Online business and digital content monetization strategies.
Gaby Loves Tech. Audience: 11K on X. Content: Tech trends analysis. Focus: Digital economy and internet culture.
• TeknoKona. Subscribers: 8.59K on YouTube. Content: Tech news and tutorials. Focus: Technology education in Swahili.
• Mohammed Hafidh. Subscribers: 2.4K on YouTube. Content: Software tutorials. Focus: Computer applications and programming basics.
12.7K on LinkedIn. Company: Tai. Focus: Animation and educational content production.
Digital Tanzania
Tanzania's government is rolling out several digital initiatives to improve public services. Here are some key projects worth watching:
GePG
The Government e-Payment Gateway (GePG) has transformed how Tanzanians pay for public services. Since its launch, revenue collection jumped from TZS 951 billion in 2018 to TZS 4.367 trillion in 2022. The system connects with all mobile money providers and banks, making it easier to pay for everything from business permits to hospital bills.
One-Stop Service Centers
By 2026, Tanzania plans to have 31 Jamii Centers across all regions. These centers will offer at least 32 different government services under one roof. Instead of visiting multiple offices, citizens can handle tasks like business registration, permits, and ID services in a single location.
NIDA
The National Identification Authority (NIDA) has registered 25 million Tanzanians and issued 21 million national ID numbers. Over 169 organizations now use this system to verify identities. The next phase introduces Jamii Namba, a unique digital ID that will work across all government services.
ILMS
The Integrated Land Management Information System (ILMIS) is digitizing land records and services. Currently being rolled out to 150 district councils, the system lets property owners check and verify land information online, reducing the need for physical visits to land offices.
GoTHOMIS
Government hospitals are adopting the Hospital Management Information System (HOMIS) to improve patient care. The software handles everything from patient records to pharmacy management. It's already making healthcare more efficient in several major hospitals.
Impact on Daily Life
These initiatives are leading to:
1) Less time spent in queues
2) Fewer trips to government offices
3) Faster service delivery
4) More transparent processes
5) Reduced paperwork
Dar Bridge
The focus now is on expanding digital services to reach more citizens, especially in rural areas. Challenges like internet access and digital literacy remain, of course. But the foundation for a more efficient government service delivery system is taking shape.
The State of Digital Public Infrastructure (2024)
DPI information was collected through interviews with Dr. Nkundwe Mwasaga (ICT Commission Director General) and Muhamed Mashaka (Ministry of ICT Director of Information Systems). Additional project updates from the 8th Tanzania Annual ICT Conference (TAIC 2024) presentations by Hon. Jerry William Silaa (Minister of ICT) and Muhammed Khamis Abdullah (Permanent Secretary, Ministry of ICT).
Tanzania's internet user base grew to 41.4 million in September 2024, marking a 20% increase from the same month last year. Mobile networks now deliver varying levels of connectivity: 2G reaches 98% of the population, while 3G and 4G networks serve 88%. The newer 5G technology remains limited to major urban centers like Dar es Salaam, Mwanza, Dodoma, and Arusha, covering 11% of the population.
Network Expansion Projects
The government's tower construction initiative has brought connectivity to 1,500 wards through 1,643 towers, serving 18.5 million citizens. Under the Digital Tanzania Project, work continues on 758 new towers across 713 wards. Progress varies by provider: Airtel leads with 108 of 169 sites completed, while Halotel has finished 21 of 34 sites. Vodacom has completed 66 of their 261 planned sites, and TTCL has established 2 of 104 sites.
The Technology Stack
Tanzania structures its digital transformation through three interconnected layers. The foundation consists of physical infrastructure—mobile networks, fiber connections, and power systems—supported by digital economy policies. Built on this foundation, the core services layer introduces three key platforms under the "Jamii" (Community) brand:
• Jamii Number serves as the national digital ID system,with over 25 million citizens registered using biometric data for unique identification.
• Jamii Malipo handles government payments (via GePG) and connecting more than 1,350 financial institutions (through TIPS). It aims to offer built-in digital wallets in ID cards.
• Jamii Data Shirikishi enables secure information exchange between government databases. Tracks all data movement between systems. Citizens control their data sharing.
These core services support various public applications: passport processing, business registration, school enrollment, and digital payments.
IXPs and Content Delivery
A network of six internet exchange points (IXP) forms the backbone of Tanzania's domestic internet traffic. The main exchange in Dar es Salaam processes up to 100 gigabits per second, while regional points in Zanzibar, Arusha, Dodoma, Mwanza, and Mbeya distribute traffic locally. Major content providers now host their services within Tanzania, improving access speeds for popular platforms. Three international submarine cables connect the nation globally
Investment Situation
Communications infrastructure buildout combines public and private funding. As of November 2023, government (UCSAF) subsidies to telco companies totaled TZS 326 billion for the construction of 2,149 towers. We believe private sector partners contribute 40–60% of capital costs.
Current Challenges
• Rural connectivity gaps remain wide
• 5G rollout limited to major cities
• Power supply reliability affects service
• High transaction costs for digital payments
• Infrastructure deployment delays in remote areas
• Limited digital ID access for under-18s
The World Bank, on the other hand, supports internet and e-services expansion through the $150 million Digital Tanzania Project (2021-26). A planned satellite launch aims to achieve nationwide coverage. In May 2024, British International Investment (the UK's development finance institution, aka BII) invested $30 million in TowerCo of Africa (TOA) Tanzania to expand the country's telecom infrastructure. The investment will help build 200 new telecom sites to increase coverage in rural areas.
Tanzania also secured a EUR 35 million grant from the European Union (EU) in October 2022. The funding, part of the Digital4Tanzania Programme (launched in October 2023), aims to expand digital payments access, support fintech startups, and connect more institutions to TIPS (our primary financial infrastructure).
For technology transfer and support, our key partner countries are India, Estonia, and Finland. Estonia shares its digital ID and e-government expertise with Tanzania through technical advisors and frameworks. Finland supports education technology by funding a virtual reality teacher training project running from 2023 to 2025. India guides digital infrastructure development, having hosted Tanzanian officials in November 2023 to share national digital ID and payment systems.
The government’s local partners include banks (like NBC and NMB), telco operators (Vodacom, Airtel, and Tigo), and software development companies like Magilatech. These private sector partners help implement national digital initiatives by providing electronic payment infrastructure, mobile connectivity networks, and cybersecurity services. Their work supports Tanzania's Digital Economy Framework 2024-2034.
What's Next
• Expanding 4G/5G to reach 85% population coverage
• Integrating government services into one platform
• Extending digital ID to children (in schools) and newborns (at hospitals)
• Adding regional content delivery nodes
• Developing cross-border payment systems
• Government network (GovNet) connecting all government offices with high-speed internet
• National Data Center expansion for hosting more government systems
The government aims to give each citizen a personal account to access all services in one place. Success depends on internet access expansion, public trust in data handling, and private sector partnerships.
Most Innovative Government Agencies (2024)
Data sourced from our exclusive interviews, official agency reports, and verified government statistics as of October 2024.
e-Government Authority (eGA) Tanzania Posts Corporation
The central force behind Tanzania's digital transformation, e-GA has developed several core systems now used across public sectors. These include….
• Government Enterprise Service Bus (GoVESB): Enables data sharing between government systems, currently connecting over 100 services
• e-Office: Used by 265+ government institutions for paperless operations
• Government Mailing System: Secure email for over 35,000 public servants
• Government Network (GovNet): High-speed connectivity linking 265 public institutions
• e-Government Security Operations Centre (eGSOC): Monitors cyber threats across government systems
The authority's e-Government Research, Innovation and Development Centre (eGovRIDC) develops local solutions and builds technical capacity among youth from higher learning institutions.
TPC has transformed from traditional mail to become a digital logistics leader. Posta maintains offices in every district nationwide, with logistics capacity reaching 30 tonnes and refrigerated transport options. This extensive network makes it one of Tanzania's largest delivery providers.
The corporation’s new Kitonga platform works like a full e-commerce marketplace. Consumers can shop online for electronics, fashion, food, books, art, and authentic Tanzania products. Local sellers list their products while TPC handles nationwide delivery through its postal network. The platform integrates digital payments and gives sellers tools to track sales and manage inventory.
Supporting these digital retail operations, TPC runs Posta Kiganjani for mobile and web services, plus virtual post boxes linked to phone numbers for TZS 14,500 only. The corporation uses e-GA's e-Office for document management and the Government e-Payment Gateway for transactions, while the IPS system handles international shipment tracking.
Tanzania Ports Authority Tanzania Commercial Bank (TCB)
TPA has modernized Africa's fifth-largest port system through comprehensive digitization. Dar es Salaam Port now handles 100,000 containers monthly, up from 60,000, thanks partly to integrated digital systems.
The authority's Enterprise Resource Planning (ERP) system, fully operational from 2022, manages everything from accounting to human resources. This single platform monitors all port activities and financial transactions. TPA completely eliminated paper invoices in 2015, moving to electronic payments through banks and mobile money
services. A sophisticated security network protects operations through 486 CCTV cameras, smart card entry systems, and electronic fencing. The Single Window system connects over 2,000 clearing agents with TRA and other stakeholders, streamlining cargo clearance.
For terminal operations, TPA employs three core systems:
• Terminal Operating System tracking cargo movements
• Electronic payment platform integrated with GePG
• Terminal Management System monitoring port operations
These digital improvements, combined with infrastructure upgrades, have helped TPA handle increasing cargo volumes—from 1.18 million metric tons (MT) in 1961 to 117.7 million MT in 2020/21. The Dar port alone aims to expand capacity from 16 million to 25 million MT annually.
With additional reporting by Lukelo Ngajilo, Senior Information Systems Auditor at KPMG East Africa
TCB pioneered digital banking partnerships in Tanzania through early collaborations with mobile network operators (MNOs). The bank first partnered with Vodacom in July 2019 to launch Songesha, which let M-Pesa users get small loans directly on their phones. (The service continues under a new banking partner.) TCB and Vodacom Tanzania teamed up again in June 2021 to introduce M-koba, which now serves over 4.5 million users and hosts more than 400,000 informal savings groups. Building on this experience, TCB (previously TPB Bank) expanded by helping launch Airtel Vikoba (in August 2023) and Tigo Pesa Kikoba (in April 2024). That move brought new USSD-based financial services to the MNOs' combined 42 million subscribers
The bank's own T-Cash Collection system integrates its 82 branches and agent network, while partnerships with SACCOs allow cooperative members to use TCB ATMs. This focus on accessibility extends to an agreement letting Tigo users withdraw from TCB ATMs.
Its strategy shows promising results. In Q3 2024, TCB reported TZS 27 billion in profit after tax (81% year-over-year growth), with total income reaching TZS 129 billion. Customer deposits grew to TZS 1.2 trillion, while loans and advances hit TZS 1 trillion. Under CEO Adam Mihayo's leadership, the bank has turned around from a TZS 46 billion loss last year, showing how state-owned institutions can successfully embrace digital innovation.
What Tanzania's Digital Services Tax (DST) Means for Tech Companies
Tanzania introduced the Digital Service Tax in July 2022 to ensure non-resident businesses selling digital services contribute fairly to the country's tax revenue. This matters because the growth of e-commerce and digital services in Africa poses unique challenges to traditional tax systems designed for businesses with a physical presence.
The 2% DST levy applies to gross payments non-resident businesses receive for providing digital services to Tanzanians, alongside a standard 18% VAT. When tech companies like Meta, Microsoft, or Google serve Tanzanian customers, they must now handle these taxes. According to TRA, by the end of the 2023/24 financial year, 91 non-resident companies had registered to pay DST, helping collect TSh 21 billion.
The impact spreads across our digital economy. Local consumers ultimately bear the cost—digital services become more expensive when both DST and VAT apply. For instance, a $159.9 Zoom subscription costs $188.7 after taxes (18% more), and a $100 MailChimp subscription costs $108.1 after taxes (8% more) in Tanzania. The government aims to create a fairer competitive environment by ensuring foreign companies contribute to Tanzania's tax revenue. However, the current lack of clarity in regulations, particularly regarding "gross payment," could slow digital sector growth.
Foreign enterprises must now navigate new requirements, including registration, filing, and payment processes. Non-compliance brings penalties, interest charges on late payments, and potential imprisonment. While this creates accountability, unclear rules make compliance challenging.
To address these challenges, Tanzania should prioritize preventing double taxation and encouraging digital sector growth. The VAT Registration Number (VRN) validation system needs review to more easily determine if purchasers are subject to VAT. Learning from global implementations, we need clearer navigation for non-resident companies and better guidance on ambiguous areas.
Baraka Cassian built Simplify's virtual fiscal device (VFD) system that lets 1,700+ Tanzanian businesses issue tax receipts from phones. He also leads Cassian & Associates, a tax and compliance advisory firm. We invited him to discuss DST.
PesaTech Accelerator
Reimagining Startup Support in Tanzania is
An Interview with Tian Zhang, Project Manager
PesaTech, funded by the European Union (EU), with additional support from the Embassy of the Kingdom of the Netherlands, recently concluded its second cohort.
The accelerator culminated in a networking event and Demo Day on September 20th, 2024, showcasing digital financial services from ten Tanzanian startups: KiasiApp, MedPack, Amala Technologies, Bizy Tech, El-dizer, Hashtech Tanzania, Linda Pesa, Shule Yetu, SimpliTech, and Swahilies.
In this conversation, Tian Zhang, PesaTech's cohort 2 manager, provides insights into the program's evolution, its unique approach to startup support, and its vision for promoting a sustainable fintech ecosystem in Tanzania.
Isai Mathias: How has PesaTech's approach to selecting startups changed from the first cohort to the second, especially considering the ‘grantpreneur’ phenomenon?
Tian Zhang: For the second cohort, we refined our selection process. After the call for applications, we conducted both an initial and an advanced review, ensuring that each application was evaluated by at least three reviewers. From there, we shortlisted 20 startups for business and technical assessments before making the final selection. During the review, we also considered factors such as how long the startup has been operating and how many acceleration programs they’ve previously participated in.
It helped us avoid startups that apply to multiple programs mainly for funding—what we refer to as "grant entrepreneurs." While that process is time-con suming, it allows us to identify the right startups and ensure we provide the support they truly need.
Isai Mathias: Can you elaborate on PesaTech's unique partnership facilita tion process with NMB Bank?
Tian Zhang: Our partnership with NMB Bank goes beyond the typical mentorship model. We organized a week-long session where startups had direct access to key departments across NMB. As one founder shared, "We had been trying to partner with banks for years, but it was difficult to find the right people. PesaTech gave us a platform to easily connect and get feedback from bank representatives."
Additionally, UNCDF also leverages partnerships with banks and MNOs to help innovation hubs understand how to work effectively with banks or MNOs and support startups in forming strong collaborations. This gives the hubs better insight into the bank's structure, key decision-makers, and how to align their accelerator programs with the bank’s priorities.
Isai Mathias: What key lessons from the first cohort have you applied to the structure of cohort 2?
Tian Zhang: Communication was a key area we focused on improving. In the first cohort, we encountered some communication issues that led to complaints from startups. For the second cohort, we took a much more proactive approach by designing a clear communication structure before project implementation. Most importantly, we ensured that we delivered on all our commitments. They (selected startups) are not our beneficiaries; they're our clients. So everything we do is very client-centric. Our job is to make their business better, and I don't feel like we are helping them—we are providing my service to them.
Isai Mathias: How are you measuring the success of startups in this cohort beyond just securing funding or partnerships?
Tian Zhang: We conduct surveys before and after each workshop to gauge satisfaction and impact. The satisfaction rate is really high. We ask, ‘From one to ten, how do you want to recommend this program to your friend?’ Most people select ten, nine, or eight. We're also looking at tangible growth. For example, one of our startups grew its loan portfolio by 158% annually since launch—more than doubling its portfolio each year from 1.5 million to 26 million Tanzanian shillings before joining PesaTech in 2024
Isai Mathias: Can you share more about the performance-based agreement model you use with startups?
Tian Zhang: We’ve implemented a staged funding approach where startups receive between USD 5,000 and USD 15,000 based on their performance. Each startup signs a performance-based agreement with us. Together, we discuss their short-term goals for the next three months and identify key milestones that the seed funding can help them unlock quickly. Every startup receives at least USD 5,000 in seed funding, and if they achieve the agreed milestones, an additional USD 5,000 is released.
We also incorporate peer review sessions in every workshop, where startups are ranked. The top three startups can unlock even more funding and gain the opportunity to participate in a regional event, expanding their network. In August, Bizy Tech, El-dizer, and Swahilies were able to attend the Africa Fintech Summit in Kenya.
Isai Mathias: How are you ensuring startups gain value beyond just funding?
Tian Zhang: Beyond funding, we provide several key value-added benefits. First is partnerships. As a neutral partner, UNCDF has a unique advantage in facilitating collaborations between fintechs and corporates. We leverage our existing partnerships to help fintechs form meaningful connections while also promoting collaboration between fintechs themselves.
Second are market linkages and market intelligence. UNCDF invests significant effort in gathering insights and producing knowledge products to stay updated on market trends. For example, in 2021, we published the Tanzania Fintech Landscape Report. Currently, we’re developing a regulatory playbook, which will guide
Tanzanian fintech startups on compliance requirements when expanding into other East African countries. PesaTech also invites experts, regulators, investors, and innovators from various countries and sectors to interact with our fintechs, facilitating valuable market connections.
Third is knowledge and capacity building. We’ve made our program more intensive and customized. Startups participate in over 200 hours of workshops covering critical topics like regulatory compliance, data security, and financial product design—essential for fintech success in Tanzania.
Isai Mathias: What specific fintech challenges unique to Tanzania are the startups in this cohort addressing?
Tian Zhang: Our startups are primarily focused on financial inclusion, particularly for underserved populations. A lot of them are focusing on women and youth in rural areas. We have startups working on e-ticketing with insurance components for safer travel, savings apps, agricultural insurance support, and lending apps. These solutions provide opportunities for people who typically lack access to financial services.
Isai Mathias: Can you share your vision for how PesaTech might evolve after the third cohort?
Tian Zhang: We're exploring several options for ensuring PesaTech's sustainability beyond UNCDF funding. The key is identifying a sustainable business model that demonstrates the program's true value to startups. We aim for innovation hubs to adapt and continue running the program, potentially leveraging partnerships with banks, mobile network operators (MNOs), and regulators. By doing so, we hope to create a self-sustaining ecosystem for fintech innovation in Tanzania.
Tian Zhang: We're learning from successful models like Ecobank's fintech partnerships, which have brought them 2 million new customers and USD 10 million in revenue across Africa. Our long-term vision isn't to stay in this market indefinitely but to help banks and corporates structure fintech partnerships and recognize the significance of these collaborations for future growth.
What is the Unique Selling Point of a Sector-focused Accelerator?
Introduction
Technology accelerators have been a part of innovation ecosystems since Y Combinator launched in 2005. The model was simple: provide a cohort of startups with seed funding, mentorship, and connections, culminating in a demo day where they would pitch to investors. This approach spread globally, with hundreds of accelerators popping up across developed and emerging markets alike.
But by the early 2020s, cracks were showing in the model. Many accelerators, especially in emerging markets, struggled to produce successful companies. They often provided generic advice that was not adapted to local contexts or specific industries. Startups would go through program after program, becoming what some called "grantpreneurs"—more focused on securing the next incubator grant than building a sustainable business.
Evolution
In 2020, UNCDF conducted a comprehensive study of Tanzania's rapidly growing fintech ecosystem. The publication aimed to fill critical information gaps and improve investor understanding of the sector. It revealed only 33 active fintech startups operating in Tanzania at the time, with most struggling to scale beyond early stages.
It also highlighted four key areas needing attention: talent gaps in technology and finance, untapped market demand from consumers and businesses, limited access to startup capital, and evolving regulatory requirements. Based on these findings, UNCDF launched PesaTech in 2022. The program was designed as a targeted response to specific challenges in digital lending, remittances, payments processing, savings, insurance, and personal finance management products across Tanzania.
Paola Trevisan delivers her first speech as EU Infrastructure and Regional Cooperation Head for Tanzania/EAC at PesaTech Demo Day 2024.
PesaTech represents a fundamental rethinking of how to support startups in emerging markets, particularly in the fintech sector. It is more than another short-term program for companies with a minimum viable product (MVP). Funded primarily by the European Union (EU) through its Digital for Tanzania (D4T) programme, with additional support from the Embassy of the Kingdom of the Netherlands, PesaTech embodies a collaborative approach to developing Tanzania's digital economy.
The first key difference is PesaTech's laser focus on fintech. While most accelerators in Africa try to back early-stage companies across various sectors, PesaTech focuses solely on financial technology startups because they are key to achieving inclusive finance in Tanzania. The program recognizes that fintech companies face unique challenges that require specialized support. It addresses these through three main pillars: seed funding, business development services (BDS), and strategic partnerships.
This focus allows for a depth of support that general accelerators can't match. In its second cohort, managed by Anza Entrepreneurs in partnership with NMB Bank and iPF Softwares (following a first cohort run by Sahara Ventures), PesaTech increased its curriculum to “200 hours of workshops.” Tian Zhang, the program manager, explains:
"This cohort was more intensive than ever before. Our startups participated in training sessions, covering topics like regulatory compliance, data security, and financial product design. Those are the nitty-gritties that fintech startups need to understand to succeed in Tanzania.” But perhaps the most striking innovation is PesaTech's approach to partnerships. Many accelerators claim to have corporate partners, but these often amount to little more than a logo on a website and maybe a mentorship session or two. PesaTech, in contrast, has established a strong, operational partnership with NMB Bank, one of Tanzania's largest banks.
This goes beyond simple mentoring. PesaTech organized a week-long session where startups had direct access to various departments within NMB. One founder described it as "unheard of"—a startup getting three hours with a bank's entire leadership team. This level of access can save a startup years of time in its partnership development process.
PesaTech's new funding model also breaks from tradition. Instead of a standard seed investment, startups receive funding in tranches based on achieving specific milestones. The initial grant is $5,000, with the potential for more based on performance. "If you achieve A, B, and C, we will give you the first tranche ($5000). If you achieve all of this, we will give you another tranche," Ms. Zhang explains. This approach ensures accountability and motivates companies to hit key targets. It addresses a common criticism of grant-based programs in development contexts.
The program's engagement with regulatory bodies is another departure from the norm. PesaTech works closely with entities like the Bank of Tanzania (BoT), which was invited to present its upcoming sandbox at the accelerator’s 2024 demo day. This integration helps startups navigate legal frameworks. It is a critical factor for success in fintech, but one that many accelerators overlook.
The results of this approach are promising. In the second cohort, 66% of applications came from female-led startups. That is a major step towards a more inclusive financial system. Despite the increased program intensity, the second cohort saw a 0% dropout rate. Some startups also reported considerable growth during the program. El-dizer, for example, increased its loan portfolio from 1.5 million ($550) to 26 million Tanzanian shillings ($9500).
However, PesaTech's model isn't without challenges. The program is resource-intensive, requiring a lot of time and expertise. Coordinating between multiple partners—banks, telcos, regulators—is complex. And while some startups have expanded operations, the long-term impact on financial inclusion and the regional fintech climate remains to be seen.
There's also the question of sustainability. Currently funded by the European Union (EU) and the Netherlands Embassy, PesaTech's long-term funding model is unclear. Can this intensive, high-touch approach be sustained without ongoing donor support?
Despite these challenges, PesaTech delivers valuable lessons for those supporting startups in emerging markets. The program demonstrates a sustainable model for innovation hubs, banks, and government agencies to collaborate in supporting early-stage companies. Beyond individual startup success, PesaTech is nurturing Tanzania's first dedicated fintech community. It is creating lasting connections between founders, financial institutions, and regulators. The program's third cohort will show whether this hands-on, specialized route can help more Tanzanians access and use digital financial services.
New Tech in Town
Product Launches (July-Oct 2024)
FINANCIAL SERVICES
What started as Benjamin Fernandes' Stanford MBA project in 2016 has grown into NALA, a major cross-border payments provider. During Q3 2024, the company launched Rafiki, a B2B payments platform bridging the gap between African businesses and global markets. The platform handles treasury management and error mapping directly, much like how dLocal transformed payments in Latin America. With nearly 500,000 customers already using NALA's consumer services, Rafiki aims to build reliable payment infrastructure for Africa's next billion users.
Two other notable fintech launches showcased Tanzania's growing AI capabilities:
Manka by Tausi— Addressing the reality that only 1.5 million Tanzanians access credit above $350, Manka transforms how banks evaluate loans. The platform analyzes both bank and mobile money transactions, cutting assessment time from hours to minutes. After successful testing with several banks, Manka launched in October through a strategic partnership with CreditInfo Tanzania.
Ghala by Neurotech— Building on the insight that most small businesses in Tanzania already use WhatsApp for sales, Ghala turns the familiar chat app into a full commerce platform. Twenty businesses joined in the first month, processing hundreds of orders through a system that handles everything from inventory to payments within WhatsApp's interface.
HEALTHCARE
A personal tragedy drove the creation of Mkanda Salama, Afya Lead's device for preventing postpartum hemorrhage. After founder Franc Mussa lost his sister to PPH, he developed this solution that's now helping mothers in 15 Tanzanian hospitals. Clinical trials at Ifakara Referral Hospital showed a 100% success rate for mild cases and over 70% for moderate cases, offering hope at a fraction of imported alternatives' cost.
The company also launched:
• Mama Salama Delivery Pack— Essential childbirth items with an AI chatbot for health education
• Pamoja Bima—Mobile app simplifying health insurance access, already connecting 500+ users to coverage
AGRICULTURE & ENVIRONMENT
Local developers are creating artificial intelligence solutions customized for Tanzanian farming realities:
William Mdemu turned his farming community experience into Agrimwendo Companion, an AI farm assistant that speaks farmers' language. The tool combines weather data, soil analysis, and local farming knowledge to guide decisions.
Theofrida Maginga developed Mkulima GPT, a Swahili chatbot that helps farmers identify crop diseases and get advice. Unlike general AI tools, it understands local farming contexts and practices.
GET Robotics, led by Brayson Laizer, brought autonomous farming robots to Tanzanian fields. These machines identify ripe crops and diseases while moving independently, helping farmers optimize their operations.
EDUCATION & RESEARCH
Two Form Six students at Kibaha Secondary School, Aidan Andrea and Eric Egidius, noticed their classmates struggling with career choices. Their solution: Niconect, an online platform connecting students to university programs and mentors. Already helping hundreds of students navigate education choices, it shows how young innovators are solving problems they understand firsthand.
TRANSPORTATION & INFRASTRUCTURE
In October 2024, Scania Tanzania announced the production of specially designed gas-powered buses for Dar es Salaam's Bus Rapid Transit (BRT) project. The buses, manufactured by Brazil's Marcopolo, represent a major step in modernizing the city's public transport. Initial images shared by Scania Tanzania through their official channels show a modern design focused on urban transit needs.
The DigiTruck, launched by Huawei and Vodacom Tanzania, reimagines rural digital education. This solar-powered mobile classroom carries laptops, VR headsets, and routers to remote areas. Unlike traditional computer labs, it can reach 5,500 students yearly across 10 regions, bringing digital skills to places that need them most.
WAGA Motion's successful test of its 7kW electric vehicle charger marks Tanzania's entry into EV infrastructure. The locally developed solution aims to make electric transport practical beyond urban centers.
Construction of BRT infrastructure continues actively, with several DART stops under construction. The World Bank is supporting this transformation through the Dar es Salaam Urban Transport Improvement Project (DUTP), which included 23.33 kilometers of roadworks in its third phase.
In September, Chaja Africa earned recognition at Energy Camp Africa in Kenya for their battery-as-a-service model. The company focuses on sustainable transport solutions, including power bank rental systems and electric two-wheelers, targeting Tanzania's large motorcycle transport market. From October 18-23, they joined 11 other African startups at the camp, exploring initiatives in clean energy and sustainable mobility.
The Tanzania-Zambia Railway Authority (TAZARA) is transitioning to private sector operation to improve efficiency. Originally designed to carry 5.5 million tonnes of cargo annually, TAZARA has seen declining operations. The government identified a Chinese company on September 5, with discussions ongoing about leasing terms and concession details.
FikaChu Mobility, launched in March 2024, combines e-bikes with smart technology for delivery services in Dar es Salaam. Its platform helps users save up to 94% on fuel costs while reducing carbon emissions by the same percentage. Through the FikaChu mobile app, delivery companies, small businesses, and university students can locate, scan, and unlock e-bikes for deliveries.
The company's SaaS platform tracks bike usage and maintenance for fleet operators, while a flexible pay-as-you-ride model removes the need for large upfront vehicle investments. FikaChu's system works with both electric and traditional vehicles, gathering data to help businesses make the switch to electric mobility.
RESEARCH BREAKTHROUGHS
At NM-AIST in Arusha, researchers found that Peste des Petits Ruminants (PPR) kills up to 90% of infected sheep and goats. Their response? Tokomeza PPR, an AI system that predicts outbreaks and identifies high-risk areas, helping Tanzania work toward global PPR elimination by 2030.
Three steps most successful launches followed:
• Personal connection to problem
• Local context integration
• Practical implementation focus
These launches show a maturing tech ecosystem where innovators increasingly build solutions rooted in local needs and realities. Whether it's NALA's journey from MBA project to major fintech or students creating tools for fellow students, the common factor is deep understanding of local challenges combined with technical capability to solve them.
INDUSTRIAL & CONSTRUCTION
ALAF Limited introduced new tech in Ruvuma region. It implemented light gauge materials and Saflok roofing across 28 grain storage facilities. This technology reduces waste during construction and offers improved durability.
Lodhia Industries plans a TZS 162 billion iron sheet production facility, though the project faces delays due to electricity needs. The company has applied for an additional 10 megawatts of power capacity, highlighting the link between industrial development and infrastructure requirements.
AGRICULTURAL PROCESSING
The China Agricultural University and Sokoine University of Agriculture partnership, supported by the Bill and Melinda Gates Foundation, brought soymilk production technology to Tanzania. The initiative operates in four villages in Morogoro region - Peapea, Kitete, Makuyu, and Mtego wa Simba. At the Mtego wa Simba training centre, Chinese expert Xu Jin demonstrated a four-step soymilk production process that delivers nutrition at par with cow's milk. A retired technician, Omary Jayo, has already invested in a grinding machine and sells the drink at 500/- per cup in his small restaurant.
MINING TECHNOLOGY
The Geita International Mining Technology Exhibition is set to receive a permanent complex for its annual gathering. Already in its seventh year, the expo attracts mining sector stakeholders from both local and international arenas. The planned facility will cover 100 hectares, aiming to transform the exhibition into East and Central Africa's premier mining and technology gathering.
GOVERNMENT DIGITAL SERVICES
The National Accounts Database System (NADABAS) is being implemented across Tanzania. This Excel-based software for compiling national accounts was developed through a Scandinavian project and has been successful in several African countries. The implementation aims to harmonize statistics across East African Community member states.
These developments show continued growth across multiple sectors, with particular emphasis on industrial capacity, agricultural processing, and digital infrastructure. Each initiative addresses specific local needs while incorporating new technology solutions.
El-dizer CEO:
'Don't despise small things. Students have money'
Atoms & Bits spoke to Elibariki Laizer, founder and CEO of El-dizer on September 20, 2024. Why? He is transforming student financing in Tanzania. Since 2021, his fintech startup has disbursed over 180 million Tanzanian shillings (about USD 66,000) to more than 1,200 students with a 0% non-performing loan ratio. But El-dizer's story begins long before its official launch.
Cultural Upbringing Builds Entrepreneurial Character
Born into a Maasai family with three mothers and seven siblings, Elibariki's childhood was shaped by his father's dual roles as a doctor and informal moneylender. "My dad was known in the community for lending. He would write down debts in a notebook and calculate," Laizer recalls.
He attended Balangdalalu, a government primary school in Manyara originally created to encourage adult Hadzabe to pursue education. Later, he pursued his O-Level studies at Ilboru Secondary School in Arusha, paying fees of 75,000 shillings per year. For starters, Ilboru is a 78-year-old public school designed for gifted and/or talented students.
"I've never been sent to these high-end (private) high schools," Elibariki notes. "But this built my capacity to love studying on my own." This upbringing would prove crucial in his future entrepreneurial endeavors.
High School Struggles and Entrepreneurship
Lazier’s journey took an unexpected turn with his long-term suspension from Lyamungo High School for alleged ‘leadership issues’. This led to a period of hardship. "Some Maasai families can be quite strict. They have Moran-like attitudes, where doing something stupid will cost you. So I was left on the streets for a while," he explains.
During this challenging time, while awaiting his sixth-form examinations, Elibariki's start-up spirit emerged. He spent three to four months outside of school selling clothes in Moshi township to survive. That experience, unintentionally, built the foundation for his future business skills. And since Laizer was only suspended and not expelled from Lyamungo, he was permitted to sit for his final A-Level papers.
University Years and Financial Challenges
After completing his national exams and a three-month stint in the National Service (JKT), Elibariki gained admission to St. John's University of Tanzania (SJUT) in Dodoma to study pharmacy. However, his financial struggles persisted. "When I arrived, the day we were registering, I went to check the list of people given loans; my name wasn't there," he recounts.
His father, skeptical due to Elibariki's past suspension, provided minimal support—just 20,000 shillings per week. "It was small, especially when you're just starting a new life," Eli remembers. This financial strain led to an important moment in his freshman year when he told a friend, "I have a great ability to pass in class, but I'm eating one meal per day. Now I want to change my way of life and invest more in making money."
The Birth of El-dizer
Elibariki's first entry into the provision of financial services came through an unforeseen channel called Elnet Africa. It was a pyramid scheme he discovered on Facebook in December 2019. Despite initial success (him making 1.2 million shillings), the scheme collapsed in February 2020. This experience taught him a crucial lesson: "Don't put money first. How people perceive you in society is your capital."
Determined to create something with a positive impact, Elibariki began loaning his friends in April 2020. Thanks to the savings accumulated during his Elnet days. "I made my own simple contract; I started lending in my class," he says. By December of his first year, he had lent to about 59 classmates.
The business grew rapidly. In 2020, despite the challenges of the COVID-19 pandemic, El-dizer reached 112 customers. Its founder's Maasai father even contributed half a million shillings in angel investment funds. That amount was combined with initial profits at SJUT to cement operations In 2021, Laizer officially registered the company with BRELA (Business Regulation and Licensing Agency) and TRA (Tanzania Revenue Authority), armed with data from over 170 customers and growing experience.
Expanding the Business
Recognizing the limitations of serving only his classmates, Laizer devised a strategy to reach more students. "I implemented an agent system. I was using the Form Four certificate as collateral," he explains. Agents received 5% of the loan amount they helped secure, incentivizing expansion across more courses at St. John’s University.
In late 2021, Elibariki launched "Pay Later," a device financing service enabling students to purchase essential university study tools like smartphones and laptops. Through a partnership with a major retailer in Dodoma who offers affordable pricing, students can browse and procure available devices in installments directly through the El-dizer platform. This diversification allowed him to purchase a car, facilitating quicker travel between SJUT and the University of Dodoma (UDOM) where he was expanding operations. "The UDOM market opened up tremendously," he notes, referring to the large (over 25,000) student population there.
However, the manual borrowing process at UDOM proved time-consuming. "It took seven to ten hours to attend all of the interested students who gathered in a classroom. If someone had an emergency, they had to wait until the next Saturday or Thursday," Elibariki recalls. This inefficiency prompted his next innovation.
Fintech Software Development
In December 2023, Elibariki launched Chuo Credit. This digital solution streamlined the loan application and approval process. "I created the app so I could receive information directly, even when I'm away. The agent submits the customer’s qualifications online. If I verify they qualify, I approve the loan," he explains.
Chuo Credit substantially improved El-dizer's operations. "It helped my expansion become quick. My turnover doesn't even stay two weeks before it's finished," Laizer says. This efficiency allowed him to expand beyond his initial two colleges at UDOM, though he remained cautious about overextending without sufficient income.
Laizer sees a large untapped market. “There were 253,701 students enrolled in 49 Tanzanian universities during the academic year (AY) 2023/24 alone," he points out. He estimates El-dizer’s potential demand based on the Higher Education Students' Loans Board's (HESLB) disbursement of TZS 731 billion (USD 300 million then) to 205,000 undergraduates and postgraduates in AY 2024.
Partnership and Growth Lessons and Advice
El-dizer's agreement with NMB Bank in February 2023 was a huge milestone. The collaboration enabled automatic loan repayment for students who receive government stipends. It lowered default risks and simplified the application process for repeat borrowers. Elibariki clarifies, "Now, customers sign one contract that lasts three to four years. New customers sign an agreement with NMB, and after that, there's no more paperwork.”
The PesaTech Accelerator program proved transformative for El-dizer. Before joining, Founder CEO Laizer worked from home with no formal team. "I didn't know how to raise funds as an entrepreneur. I didn't realize my business had such potential," he admits. PesaTech equipped him with crucial business knowledge. He recounts, "I attended four workshops that taught me a lot. Now I have a small office and a growing team. I pay them on a commission basis, and we'll start salaries by the end of the year."
Product Range and Market
Potential
El-dizer offers four main products.
1. Uni-Loan: Emergency credit for students to cover tuition fees, stationary expenses, and meals or accommodation (MA) costs before receiving government funds.
2. Pay Later: Device financing for students.
3. Graduate Loan: Credit for recent degree holders based on their student credit history.
4. Internship Loan: Mostly for medical students during their practical year.
Looking back on his journey, Elibariki emphasizes self-belief and spotting opportunities. He advises, "First, don't underestimate yourself. Second, don't despise small things. Many people think, 'these are just students; they don't have money.' That's a mistake.”
Laizer encourages aspiring entrepreneurs from modest backgrounds to start a startup while in university. "College is a good time to become an entrepreneur. If you fail, your brother or sister can save you. But out there (in the streets), if you fall, you can't count on the same support you'd get in college," he explains.
Elibariki's Maasai upbringing continues to influence his professionalism. "We're taught to respect elders deeply. Wherever you go, treat people like your parents," he says, highlighting how respect and community values guide his business model.
Future Vision
Elibariki's plans for El-dizer address broader issues in student financing. "My data shows many students cannot manage money. They lack financial education," he notes. His proposed solutions include working with HESLB to better manage student funds, possibly through a campus-specific digital currency that students can use to buy food and other necessities.
His team is also developing new products to expand financial inclusion and build trust in transactions. Their key innovation here is "Kijumbe Mchezo," a digital platform for informal savings groups. For starters, "Mchezo" in Tanzanian slang refers to these groups where members pool money and take turns receiving payouts. "Kijumbe," on the other hand, is a trusted member who collects and distributes pooled funds.
Elibariki explains, "We want to make it possible for people who don't know each other to join the same rotating savings and credit association (ROSCA). Someone in Kilimanjaro could be in a group with someone in Songea town, southern Tanzania.” This upcoming platform aims to digitize and expand traditional circles. It will enable more people to participate in informal financial systems regardless of location or personal connections.
"Kijumbe will protect the entire ROSCA by ensuring all members receive their expected payouts, even when some default," explains Elibariki. "Instead of the common practice of penalties or removal, El-dizer will step in to contribute on behalf of members experiencing shortfalls.” It will charge a small fee only to members receiving payouts after its intervention. While traditional Vijumbe often utilize handwritten records and follow-up calls to manage ROSCAs, El-dizer's new digital platform will automate the entire process.
In addition, Laizer advocates for policies that support companies serving underserved markets. "The government should quickly allow new startups like ours that serve overlooked segments. Don't create unnecessary obstacles," he urges.
Throughout El-dizer's journey, Elibariki has relied heavily on statistics to inform his decisions and product development. "I'm very data-driven, and that's how I've been creating my products," he states. This approach has allowed him to identify gaps in Tanzania's finance sector and create solutions for students at different stages of their academic careers—starting from first-year enrollment all the way to internships.
But his vision for El-dizer extends beyond its current offerings. He aims to create a "youth bank" that comprehensively addresses the financial needs of young Tanzanians.
Looking back: Our original banner from August 2023
WAKISHUA WHO'S WHO &
Education Paths and Business Models of Tanzania's Tech Leaders, Vol. 1
Role:
Business Model:
Business Model:
• Commission per completed tutoring session
• Revenue from 28,349 bookings (in 2022 alone)
• Marketplace connecting tutors with students
Education Path:
• Ilboru High School: PCM (Physics, Chemistry, Mathematics)
• BSc Actuarial Sciences, University of Dar es Salaam [UDSM] (2017-2020)
Role: Founder, Binary Labs
Business Model:
• Paid tech bootcamps and workshops
• Corporate training programs
• Custom curriculum development
Education Path:
• Political Science, California State University, Fresno (2006)
• Development Studies & Political Science, UDSM (2007)
• MBA, ALU School of Business Rwanda (2019)
Role: Founder & CEO, NALA
Business Model:
• Fee-based international money transfers
• B2B payment processing fees
• Licensed in UK, EU, US; operating in 9 African countries
Education Path:
• Haven of Peace Academy (1998-2010)
• BSc Accounting & Computer Science, Northwestern-St. Paul (USA) MBA, Stanford University
• Harvard Kennedy School Executive Education
• Role: CEO, NovFeed
Business Model:
• Direct sales of sustainable fish feed and EcoVita fertilizer to commercial farms
• Recurring revenue from regular feed and fertilizer supplies
• Value-add services in fish farming optimization
Education Path:
• BSc Molecular Biology & Biotechnology, UDSM
• UNLEASH Innovation Lab, Denmark (2020)
Adam Duma
Catherinerose Baretto
Diana Orembe
Benjamin Fernandes
Desire Ruhinda
Role: COO, Medikea
Business Model:
• Consultation fees from virtual care
• Monthly subscriptions for telehealth services
• B2B corporate wellness program fees
• Medication delivery service margins
Education Path:
• MD, Kilimanjaro Christian Medical University (2014-2019)
• MPhil Inclusive Innovation, University of Cape Town (2021)
Faith Pella
Role: Co-founder, KilimoFresh
Business Model:
• Revenue from B2B fresh produce sales to hotels, restaurants and caterers Sales to street vendors through direct delivery
• Monthly revenue of $100,000 after expanding to street vendor segment
• Serving 1,200+ vendors and 1,000+ farmers across 3 regions (as of Jan 2023)
Education Path:
• BSc Accounting & Finance, Institute of Finance Management (IFM) Tanzania (2005-2008)
• MBA International Business, Indian Institute of Foreign Trade (2011-2013)
Business Model:
• TZS 5,000 monthly or TZS 500 daily subscription per student
• Virtual lab simulations in 2D/3D for science subjects
• Data Science & Robotics, University of Turku (2023)
Role: CEO, Lishe360
Business Model:
• Direct baby food product sales
• 120+ retail channel distribution
• Child nutrition classes: TZS 10,000 per parent, over 17,000 parents registered
• B2B wholesale margins
Education Path:
• St. Joseph's Millennium (2008-2011)
• Feza Boys' High School (2012-2014)
• UDSM Chemical Engineering (incomplete)
Role: CEO, Airpay Tanzania
Business Model:
• Payment processing fees
• Agent network revenue (coming soon)
• Free training academy to expand financial literacy
• Sends personalized payment links via SMS and earns a fee per transaction (Linkpay)
Education Path:
• Accounting, Penn State York (1999-2000)
• BA Accounting, Monroe College (2000-2002)
• MSc International Business, Hartford (2004)
Simon Mbangalukela
Tukupala Mwalyoyo
Yasmin Chali
Important Note
This analysis covers 24 prominent tech leaders in Tanzania's ecosystem. It’s not a complete representation but a snapshot of some notable founders and investors who have gained recognition through their ventures' growth, funding raised, or ecosystem impact. We have used publicly available information.
Notable Patterns
Top High Schools:
• Feza Boys: 3 leaders
• Ilboru: 2 leaders
• Aga Khan: 2 leaders
• HOPAC: 2 leaders
Business Model Evolution
• Early founders (pre-2020): 70% pure SaaS
• Recent founders: 80% hybrid models
Educational Combinations
• STEM + Business: 8 leaders
• Technical + Law: 1 leader
• Pure Business: 9 leaders
• Pure STEM: 6 leaders
Source: LinkedIn profiles and private interviews with founders, October 2024
NMB's Evolving Startup Strategy
Infrastructure Over Incubation
Based on direct interviews and NMB Bank's 24th Annual General Meeting (AGM) proceedings. Additional market data provided by Solomon Stockbrokers.
NMB Bank has taken an unconventional approach to supporting Tanzania's startup ecosystem. It focuses on technical infrastructure rather than traditional incubation programs. In 2021, the bank began reimagining its fintech partnerships strategy under current Head of Innovation Josina Njambi, who noted that digital channels were already handling 93% of transactions with 24% year-over-year (YoY) growth while branch transactions declined by 10%
By 2024, this digital transformation has accelerated significantly. The bank's latest financial statements (H1 2024) show customer deposits reaching TZS 8.9 trillion ($3.3Bn) across 234 branches. Digital channels, on the other hand, processed 134 million transactions in 2023, a 61% increase YoY.
Only 4% of its transactions happen at physical branches, with 4.95 million Mkononi app/USSD service subscribers and 1 million daily active users recorded in 2023. During the same year, 84% of new retail customer accounts (924,000) were opened digitally, demonstrating strong user adoption of digital services.
These numbers have shaped NMB Bank's current startup engagement strategy, which emphasizes API access and technical integration over equity investment. Instead of picking winners through loans, grants, or buying shares, NMB now lets any company plug into its banking systems. Their sandbox allows any fintech to test features like checking balances, handling transfers, and processing payments using Python, React, or other common programming tools before releasing a financial product.
The bank's approach revolves around three recently upgraded elements:
• A revamped NMB Mkononi Platform with improved API access
• Modernized core banking infrastructure with updated server architecture
• A new Software Defined Wide Network Area (SD-WAN) for improved security and efficiency
This strategy appears to be working alongside NMB's main business growth. The bank reported TZS 314 billion in profit for H1 2024, maintaining strong financial performance while investing in digital infrastructure. Current integration priorities focus on four key areas that align with Tanzania's market needs:
• Payment systems modernization
• Agritech solutions (NMB loans to the agriculture sector grew by almost 40% each year between 2019 and 2023, reaching TZS 756 billion)
• Alternative data for credit scoring
• Digital tools for enterprises (backed by TZS 775 billion in MSME loans)
However, some challenges persist. The bank's rapid loan growth has outpaced deposit mobilization, creating funding pressure that could affect fintech partnerships. To address this, NMB is deploying new deposit initiatives targeting digitally-enabled customer segments. Integration timelines, on the other hand, remain lengthy due to compliance requirements—a necessary friction point given Tanzania's evolving fintech regulations.
What makes NMB's approach notable, at least to us, is its focus on providing foundational infrastructure rather than just funding. The bank's recent software and network upgrades show a commitment to building
Tanzania Banking Guide 2024
Your Money, Their Fees
Of Tanzania's 34 commercial banks, we dug into eight key players. Why? CRDB, NMB, and NBC dominate as the largest local banks. Azania represents indigenous banking history. Stanbic, NCBA, DTB, and ABSA bring international presence. Together, these banks serve over 60% of Tanzania's 7.5 million banking customers.
Monthly Account Fees
A business owner spends between TZS 15,000-65,000 monthly just to keep an account open. Azania charges TZS 16,000, ABSA asks TZS 12,000, while CRDB and NMB charge TZS 15,340. For big companies, corporate accounts at Stanbic cost TZS 64,900 monthly, while similar business accounts at NBC cost TZS 26,000.
ATM Withdrawals
Using your own bank's automated teller costs the least. CRDB charges TZS 1,200-4,000 based on amount. NMB takes TZS 1,100-1,800. Stanbic asks TZS 1,450-2,000. Azania charges TZS 1,500-1,700. DTB keeps it simple at TZS 1,200 flat. However, Absa customers don’t pay anything for using Absa ATMs.
Using other banks' ATMs costs more: between TZS 2,800-5,000 per withdrawal. International cash withdrawals cost between TZS 5,000 and 15,000, plus, in some cases, 1% to 1.5% of the amount withdrawn. A small enterprise making weekly withdrawals from another bank's ATM in Tanzania would spend between TZS 145,600 and TZS 260,000 yearly on ATM fees alone.
For those withdrawing from their own bank accounts, the annual cost would be between TZS 0 and TZS 78,000. This cost variation depends heavily on the specific bank and account type. For example, NBC customers with accounts like Private Banking wouldn't have any ATM fees when using NBC ATMs.
Digital Money Movement
Banks advertise free mobile banking (features), but moving money costs money. Sending TZS 50,000 to wallets like M-Pesa costs TZS 4,000 from an Azania and Absa account, TZS 4,770 from CRDB, and TZS 5,500 from NMB. Larger transfers show bigger differences. Sending TZS 500,000 costs TZS 7,000 at Azania, TZS 7,080 at NBC, TZS 10,700 at CRDB, and reaches TZS 10,500 at NMB. We couldn't find similar fees for other banks in the documents we obtained, which may indicate varying business priorities.
Borrowing Money
Banks charge yearly interest on loans. We have summarized some of their base/prime lending rates below.
• CRDB and Azania: 13.5%
• Azania: 13.50-25.2%
• NMB: 17%
• Stanbic: 21%
They also take one-time processing fees when disbursing credit. Personal loans cost 1.5-2% of the borrowed amount at NBC and Stanbic, while Absa charges 1.75% with a minimum of TZS 150,000. Business loans range from 1-1.77%. Mortgages typically cost 1-1.5% upfront. Business loan processing fees vary; CRDB charges 1.77% for SME and agri-loans, while NMB charges 0.5% for SMEs with a credit cap of TZS 660,800.
Real estate (mortgage) loans typically cost 1% to 1.5% upfront at Stanbic and NBC, with Absa charging 1.5% and a minimum of TZS 200,000.
But loans in Tanzania often come with additional charges beyond the interest rate. Legal fees for loan-related documentation can vary, with Absa specifically listing fees for security perfection between TZS 100,000 and TZS 215,000, while NMB charges 0.5% of the borrowed amount. Yearly loan insurance, often mandatory, can range from 0.4% to 0.65% as seen at Azania Bank. Early repayment penalties can be as high as 10% of the outstanding balance at NBC. Always review the specific loan agreement to understand all associated fees and potential fines.
International Transfers
Moving money abroad costs USD 55 at DTB and CRDB, $59 at Azania, and $60 at NBC (excluding overseas charges). Stanbic, NCBA, and Absa charge a percentage of the amount transferred internationally, but the final fee is subject to within a specified range.
Stanbic's cut is 0.3% of the transfer amount, with a minimum of $50 and a maximum of $150. NCBA charges 0.25%, but the fee will be between $60 and $250. ABSA also charges 0.3% ($60 to $200). Most banks add overseas charges ranging from USD 29.5 to USD 35, but specifics aren't available for all.
On top of that, if you buy something or withdraw money from an ATM in a foreign country, you could end up paying 3% to 7% more than the listed price or the amount you withdraw. Why? Banks must cover the expenses they incur when exchanging currencies. Keep in mind that all these fees are subject to change (about once a year). So, it's crucial to confirm the latest charges with your bank before initiating any remittance.
Premium Banking
Our commercial banks offer special services for wealthy customers. NMB Executive costs TZS 23,600 monthly with a TZS 500,000 minimum balance. Stanbic Private Banking charges TZS 29,500 but becomes free with deposits exceeding TZS 80 million. An Azania Premium account asks TZS 25,000 monthly. NBC Private demands TZS 59,000 with just TZS 100,000 minimum. Absa Premier needs TZS 50,000 monthly, but the fee is waived with a minimum balance of TZS 80M.
Real Costs
A typical business spends TZS 500,000-1,000,000 yearly on basic banking. This covers account fees, transfers, and ATM use. Loan charges, international transfers, and card costs add more.
Choose banks based on your needs. Heavy mobile money users might save with CRDB or Azania. International businesses could benefit from DTB's flat transfer fees. Calculate your banking patterns before deciding.
We derived all charges from official bank tariffs that were effective between June 2023 and October 2024. Fees may be lower for larger deposits or transactions.
