The report shows a significant change in the startup landscape in Tanzania

Dodoma. The 2023 National Investment Report highlights a significant shift in the startup landscape, showing a growing trend toward ownership diversity.

One key finding is the decline in male-dominated startups, signaling that more women and diverse groups are gaining ground in the entrepreneurship space.

The report was recently launched alongside other economic development reports with Prime Minister Kassim Majaliwa as the chief guest at the event. It was prepared within the Ministry of State in the Chancellery of the President (Planning and Investments).

This positive trend highlights the growing involvement of women and underrepresented groups, which is beneficial for innovation and the overall resilience of businesses.

The report shows that there was a significant decline in the number of startups dominated by men – from 76.60 percent. in 2022 to 37.65 percent in 2023

This change is a positive development, highlighting the growing involvement of women and underrepresented groups in the startup ecosystem.

In mainland Tanzania, this trend towards diversity is consistent with the country’s demographic structure. The population of 59,851,347 is almost evenly divided between men (49 percent) and women (51 percent).

The fact that the majority of the population is women may contribute to the growing presence of women in start-ups.

This shift marks progress towards a more inclusive economy, where both genders increasingly participate in and shape the business landscape.

The report reflects positive developments in diversity and equality in the startup ecosystem, with more women and diverse groups taking on leadership roles.

Economic analyst Makwaya Boniface said the sharp decline in the percentage of male-led startups indicates a transformational change in the entrepreneurial landscape.

He emphasized that traditionally the startup sector has been largely male-driven, reflecting broader social trends and historical barriers that limit access and opportunities for women and other minority groups.

Boniface said the decline from 76.60 percent to 37.65 percent suggests that these traditional patterns are being disrupted, creating space for a more diverse range of entrepreneurs.

“This decline in male ownership signals an increase in the participation of women and underrepresented groups in entrepreneurship. “Increased engagement with these groups is key to supporting a more inclusive business environment,” he added.

He also noted that women and minorities bring unique perspectives and innovative ideas that can lead to more diverse and creative solutions in the startup world.

Boniface added that this integration helps eliminate long-standing disparities and promotes more balanced representation in the entrepreneurial ecosystem.

Ms Halima Mohamed, who holds a master’s degree in economics and is a businesswoman, said the move towards greater diversity of startup owners has several advantages.

She explained that diverse ownership often leads to improved innovation because diverse experiences and perspectives contribute to creative problem solving.

Ms Mohamed said research shows that teams with diverse backgrounds better understand and respond to the needs of a broader customer base, which can improve business performance and adaptability.

She also noted that diverse leadership teams are more resilient and better prepared to meet the challenges of a competitive marketplace.

The report highlights the key role of Tanzania’s growing startup ecosystem in reducing unemployment by creating new job opportunities, supporting innovation and promoting entrepreneurship.

Startups play a key role in job creation, especially in the technology and digital services industry, providing positions for young professionals and graduates.

The report indicates an increase in the number of startups by 25.26%, from 673 in 2022 to 843 in 2023, resulting from the growing culture of self-employment and growing investor interest.

Dar es Salaam remains a hub for startup activity, hosting 56.47% of the country’s startups thanks to its infrastructure and resources.

Other cities, including Mbeya, Dodoma, Arusha, Morogoro and Mwanza, are also seeing significant startup growth, reflecting efforts to decentralize economic opportunities.

Additionally, the ecosystem promotes innovation, diversifying the economy with advances in the fintech, agritech, healthtech and edtech sectors.

Entrepreneurship is becoming a viable career path in Tanzania, encouraged by the success of local start-ups.

Incubators and accelerators play a key role in supporting new businesses by offering resources and mentoring.

Startups also help bridge the skills gap by providing on-the-job training and professional development, equipping workers with the skills needed in modern industry.