Nestled amidst the captivating landscapes of East Africa, Tanzania emerges as a rising and thriving star in the African startup arena. With a population of 65.5 million, this small but vibrant nation claims its position as the 114th rank holder in the Global Startup Ecosystem Index. Standing tall at 7th in the regional ranking, Tanzania has silently forged its path as a dynamic and thriving market for entrepreneurial endeavours.
According to the World Bank, Tanzania's economy experienced growth with a 4.6% expansion in 2022, compared to 4.3% in 2021. In terms of GDP per capita, there was a 1.4% increase in 2022, and the international poverty rate saw a slight decline of 0.3% points. Despite this upward trajectory, Tanzania is only projected to reach its potential growth rate of 6% in 2025. Due to a decline in revenue performance and the mounting financing requirements to address the repercussions of the COVID-19 pandemic, the country's fiscal deficit expanded from 0.8% of GDP in 2020 to 3.4% in 2021. In stark contrast, its nearest neighbouring country, Kenya, boasted an impressive annual GDP growth of 7.5% in 2021, reaching a noteworthy GDP of USD 110 B.
The country's entrepreneurial landscape includes several cities that have emerged as centres of innovation and opportunity, showcasing the country's rich potential for startup growth. Leading the pack is Dar es Salaam, the economic epicentre and largest city, renowned for its bustling startup scene, robust infrastructure, and access to essential resources. Arusha, aptly known as the "Geneva of Africa," embraces a unique blend of international and regional conferences and a tech-savvy population, fostering an environment where startups thrive.
