Tanzania’s fintech start-up sector has developed rapidly in the last ten years and with that growth, a dynamic innovation ecosystem and close-knit community of founders has emerged. Many of these founders have benefitted from participation in various early-stage incubation, acceleration, and mentorship programs—and they are ready for the next level of growth and a new kind of accelerator. UNCDF Tanzania, together with Sahara Ventures, one of Tanzania’s leading innovation ecosystem facilitators, Enea Advisors, a Tanzanian consulting firm for early and growth-stage entrepreneurs in East Africa, an Highsight Ventures, an international network of startups, enterprises, capital, and markets, is excited to support these innovators with the launch of the PesaTech Accelerator.

The Problem

Recent research conducted by UNCDF Tanzania highlighted that while there are a number of high-quality startup accelerator programs in Tanzania, many do not provide incremental, follow-on support from one year—or growth-stage—to the next. When a founder completes one program, or as her business grows, she does not ‘graduate’ with opportunities for higher-level support, but is rather left with other programs that offer similar types of capacity building. Additionally, while many programs focus on investment-readiness, offering startups the opportunity to pitch their ideas, the funding awarded is typically small (less than $10,000) and few programs address start-ups’ need for the business skills they’ll need over the longer-term, if/when they do grow—like financial management and modeling, due diligence, and complex project management. Moreover, because there are almost no early or late-stage startup investors in Tanzania, startups that do win existing competitions are still constrained in accessing catalytic growth capital. As a result, there has been a recycling of candidates in competitions, leaving less room for new entrants.

The Solution: Why PesaTech Accelerator

The recently-launched PesaTech Accelerator is designed to tackle some of these challenges. The program targets early-stage start-ups with a Minimum Viable Product (MVP) and later-stage post-revenue start-ups with a tested business model—some of whom may had prior engagement with other innovation hubs—that are close-to-ready for investment.

First, startups go through an assessment/diagnoses to inform the type of support they will receive throughout the program. Post-MVP startups participate in a two-week technical and business boot-camp, geared towards improving product quality and go-to-market strategies. Topics covered include customer validation, finance, and creating pitch decks from an investors’ point of view and coaching sessions aim to provide startups with a first-hand understanding of what it takes to integrate with a bank or MNO, be funded by a commercial lender, and/or partner with a corporate. Then, unique to the PesaTech Accelerator, participants receive bespoke technical support from business development specialists. The aim of these one-on-one sessions is to ensure startups receive support on go-to-market strategies, compliance, and fundraising that is tailored to their specific enterprise. Finally, the Accelerator hosts a demo day and provides post-acceleration support, offering deal sessions and marketplaces to support startups access strategic partnerships and potential investors. Post-program, start-ups are matched with regional and global investor networks and communities of practices in the fintech sector and supported by business development specialists to ensure continued growth. Throughout the program, lessons learned will be documented and shared within the ecosystem. With this holistic approach and view towards supporting startups over the long-term and as they grow, the PesaTech Accelerator aims to create a pipeline of investment-ready businesses and achieve systemic impact within Tanzania’s innovation ecosystem.

At the program’s launch on May 5, Guest of Honor Dr. Amos Nungu, Director General of COSTECH, spoke about the Government of Tanzania’s commitment to creating an enabling environment for innovators in the country. He also said that he believes the PesaTech Accelerator will help Tanzanian innovators increase their knowledge, build networks, and earn money to growth their startups.

Learn more and APPLY!

Post-MVP and Post-Revenue startups, especially ones led by women, should learn more and apply HERE! Interested mentors and collaborators can also sign up to participate via the same link. Applications are open until May 31 – don’t delay!