Realising the importance of Information and Communication Technology (ICT) in boosting the national economy, the government of Tanzania has introduced a special loan scheme targeting youth-owned Information and Communication Technology (ICT) start-up companies.
The initiative, which focuses on strengthening Tanzania’s digital economy, is also part of the government’s broader efforts to support the implementation of the country’s development agenda towards achieving the Tanzania Development Vision 2050.
While the Tanzania Development Vision 2050 seeks to transform the country into a US$1 trillion economy, the ICT sector would have an important role to play in contributing to this target.
The launch of this programme follows directives by Tanzania’s President, Dr Samia Suluhu Hassan, who tasked the Ministry of Communication and Information Technology with strengthening the growth of the ICT industry in the country, particularly by facilitating access to finance for active start-up companies with viable innovations.
As part of its response to the directives, the ministry has set aside at least 200bn/- for the purpose.
Officially launched on October 2, 2026, in Dodoma, the capital city, the programme will provide loans worth at least 5bn/- in its first phase.
Speaking during the launch ceremony, the Minister for Communication and Information Technology, Ms Angella Kairuki, said the government had introduced the programme to stimulate growth in the digital economy by supporting innovative youth-led start-up companies operating in the ICT sector.
She said that, under the programme’s structure, the loans would be provided under three categories.
“The lower category will involve loans ranging from 1m/- to 25m/-, the middle category will provide between 25m/- and 50m/-, while start-ups under the upper category will receive between 50m/- and 100m/-,” she said.
The minister said President Samia, through the National Economic Empowerment Fund, had allocated at least 5bn/- in the first phase for capital loans to innovative ICT start-up companies.
She urged prospective beneficiaries to use the financing effectively by developing innovative digital products capable of attracting markets both within Tanzania and beyond.
“Make sure you invent digital products that solve challenges arising in all economic sectors, as well as introducing user-friendly products to fast-track key services,” she said.
She underscored the importance of young ICT innovators in the country using the funds to transform their ideas into viable businesses capable of creating jobs, generating income, producing high-value ICT products and attracting further investment.
“We have also established discussions with the Public Procurement Regulatory Authority (PPRA) on the possibility of enabling qualified start-up companies to access government procurement opportunities,” she unveiled.
Speaking at the launch, the Chairman of the Board of the Tanzania Communications Regulatory Authority (ICT Commission), Dr Henry Mwanyika, said the initiative would play an important role in strengthening the country’s digital industry.
He said that, apart from creating more employment opportunities for young people, the capital loan scheme was expected to contribute to the growth and performance of Tanzania’s digital economy.
“The Tanzania economy is divided into 21 different sectors. Make sure you invent key ICT innovations to cover each sector,” he challenged the beneficiary start-ups.
To ensure that the programme runs smoothly, the government has entered into a contract with Azania Bank Plc for the professional rollout of the funds.
The bank’s Managing Director, Dr Esther Mang’enya, said the reputable financial institution was prepared to implement the programme professionally.
“We feel proud to have been selected to handle this programme for rolling out capital loans to innovative ICT youth start-ups. We are going to run it professionally and patriotically,” she said.
Apart from providing loans, Dr Mang’enya said the bank would offer mentorship to beneficiaries to help them implement their projects successfully and strengthen their capacity to repay the funds.
The Chief Executive Officer of the Tanzania Start-ups Association (TSA), Mr Zaboro Muhaji, hailed President Samia for introducing what he described as a supportive programme for the country’s ICT and digital sector.
“The launch of this helpful programme highlights the government’s commitment to promoting the development of the ICT sector in Tanzania,” he said, urging beneficiaries to ensure that they repay the funds on time.
Muhaji said the sector had attracted approximately US$400 million in investment inflows over the past five years, underscoring the growing importance of ICT and digital enterprises to Tanzania’s economy.