Dar es Salaam — Stakeholders in Tanzania’s startup ecosystem have called for a clearer legal and regulatory framework to support innovation-driven enterprises, as the country prepares to adopt its first national startup policy. The call was made during a policy hackathon organized by the Tanzania Startup Association (TSA) in Dar es Salaam, where industry players reviewed the draft National Startup Policy and proposed recommendations to improve the document before its adoption.

Legal Gaps and the Need for Recognition

For years, startups in Tanzania have operated without formal legal recognition, functioning under regulatory frameworks designed for conventional businesses. The situation has limited their ability to access financing, regulatory incentives, and broader market opportunities, according to operators. The Ministry of Communications and Information Technology is currently developing the policy to provide a thorough framework governing how startups are established, operate, scale, and exit the market.

The ministry has requested feedback from ecosystem stakeholders to ensure the policy reflects the realities facing entrepreneurs and technology innovators. Speaking during the hackathon, the Chief Executive Officer of the Tanzania Startup Association, Zahoro Muhaji, said the policy represents an important milestone for Tanzania’s innovation ecosystem.

“For the first time, Tanzania has an opportunity to establish a dedicated framework that recognizes startups as a unique category of businesses. This policy is crucial for unlocking investment, enabling innovation, and positioning Tanzanian entrepreneurs to compete globally,” he said.

Legal Experts Highlight Key Gaps

Legal experts participating in the session noted that one of the biggest gaps in the current ecosystem is the absence of a formal legal definition of a startup. Kheri Mbiro, senior partner at Breakthrough Attorneys, said establishing such a definition would help create a more effective regulatory environment for innovation and entrepreneurship.

“Currently, Tanzania does not have a legal definition of what constitutes a startup. Without that clarity, it becomes difficult to design targeted regulations, incentives, or support mechanisms,” he said. He added that the proposed policy would help formally recognize startups within the country’s legal framework while creating regulatory pathways that support innovation and accountability.

Startup founders also emphasized the need for the policy to strengthen collaboration between startups and public institutions, particularly through government procurement and partnerships. The Chief Executive Officer of agritech firm Kilimo Freshi, Baraka Jeremiah, said improved market access will be essential for startups seeking to scale their innovations.

“For startups, access to markets is just as important as access to capital. The policy should create pathways for startups to work with government through procurement and public-private partnerships,” he said. He added that allowing startups to pilot and scale innovations in collaboration with government institutions would accelerate both technological development and national economic growth.

Next Steps and Implications

Recommendations generated during the hackathon will be consolidated by the Tanzania Startup Association and submitted to the Ministry of Communications and Information Technology as part of the ongoing national consultation process, the association said. The proposed policy is expected to be finalized by mid-2025, following further consultations with stakeholders across the country.

According to the Ministry of Communications and Information Technology, the draft policy includes provisions for tax incentives, easier access to credit, and simplified registration processes for startups. These measures are expected to reduce the administrative burden on entrepreneurs and encourage more investment in the sector.

The policy is also anticipated to address the lack of funding for early-stage startups by creating a framework for angel investors, venture capital firms, and development finance institutions to operate more effectively in Tanzania. The government has set a target of increasing the number of registered startups by 50% within the next three years.

Industry analysts have welcomed the move, noting that the lack of a formal legal framework has been a major barrier to growth in the startup ecosystem. A recent report by the African Development Bank estimated that over 70% of startups in Tanzania face challenges related to legal recognition and regulatory compliance.

“The proposed policy is a step in the right direction, but it will be crucial to ensure that the final version is both thorough and adaptable to the evolving needs of the startup sector,” said Dr. Amina Kessy, a business development expert at the University of Dar es Salaam.

As the government moves forward with the finalization of the policy, stakeholders are urging for continued engagement to ensure that the interests of all parties are represented. The policy is expected to be a cornerstone of Tanzania’s broader strategy to position itself as a hub for innovation and technology in East Africa.