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Smart Solutions, Big Impact: How the EU is Propelling Tanzania’s Startups

During his visit to Tanzania for the EU-Tanzania partnership dialogue, Hans Stausboll also explored the impact of the FUNGUO Innovation Programme, visiting Aatif Aquaponics, a beneficiary of the programme. He also met with founders of Laina Finance and HashTech, both supported by the EU-funded PesaTech Accelerator under Digital4Tanzania, showcasing their innovative solutions in financial inclusion and transport.

 

Taking you back to October 2022. Hans Stausboll, the Acting Director for Africa at the European Commission’s International Partnerships, stood before a vibrant and eager audience of applicants for the European Union-supported FUNGUO Innovation Programme in Dar es Salaam. Amid loud cheers, it was his honour to announce the winners of the programme’s first cohort, with Aatif Aquaponics among the proud beneficiaries.

Fast forward to today, Hans is back in Tanzania, primarily for the EU-Tanzania partnership dialogue. During his visit, he also takes the opportunity to see first-hand how the support provided through FUNGUO has taken root. Aatif Aquaponics, once a small venture, has now grown into a promising smart farming project based in Zanzibar, aiming to revolutionize sustainable agriculture on the island.

The farm, nestled in Zanzibar’s countryside, is now home to a 1,500-square-meter aquaponics and hydroponics greenhouse. Rows of paprikaand chillies thrive in a system that uses coco peat instead of soil.

“This farm perfectly embodies the kind of sustainable and scalable impact we envisioned when we launched the FUNGUO Innovation Programme,” Hans remarks as he steps into the greenhouse.

When Aatif Aquaponics first joined FUNGUO, the farm operated on a modest 200-square-meter plot. With a TZS 100 million grant from the EU, the company was able to expand its infrastructure. These improvements helped the company secure additional third-party funding of €200,000 from the German venture program, DeveloPPP.

“We’ve gone from dreaming of scaling to actually making it happen,” says founder Rashid Ali Rashid, reflecting on the journey. “The support from FUNGUO was the turning point.”

By 2024, the farm’s annual sales had reached TZS 125 million—a six-fold increase from its early days. Aatif Aquaponics now employs 17 people, with plans to create 12 more jobs as it develops a newly acquired 10-acre plot. Beyond the numbers, the farm’s eco-friendly practices stand out: its aquaponics system uses 90 percent less water than traditional farming methods, eliminates harmful pollutants, and produces 100 percent organic vegetables.

Looking ahead, Aatif Aquaponics has big plans. The 10-acre expansion is part of a 5-year plan, with the first phase set to begin in 2025. The company aims to reach TZS 300 million in sales by the end of 2025 without additional investments, mainly through the expansion of just half an acre. If Aatif Aquaponics successfully installs hydroponics farms across the entire 10 acres, the company estimates annual sales could surpass $5 million.

Hans Explores the PesaTech Ventures

EUD

While in Dar es Salaam, Hans also took the opportunity to meet the founders of two other EU-supported ventures: Laina Finance and HashTech, both beneficiaries of the EU-funded PesaTech Accelerator under the Digital4Tanzania (D4T) programme. It’s also worth noting that HashTech was a beneficiary of the FUNGUO programme, having received funding in its second cohort.

Tonny Missokia, the founder of Laina Finance, explained to Hans, his company which addresses financial exclusion in Tanzania by offering innovative payment solutions like buy-now-pay-later options and device financing. Through its mobile platform, Laina is transforming how Tanzanians access financial products. Since joining D4T, Laina has gained recognition for its impact on financial inclusion, expanding its reach and securing awards like Africarena 2022.

Meanwhile, HashTech, co-founded by Zena Msonde, is digitalising Tanzania’s transport sector with its MySafari app. The app offers secure, real-time bus ticketing and travel tracking, tackling inefficiencies like ticket fraud and streamlining the travel experience for passengers. By integrating digital services with life insurance, HashTech has set itself apart as a key player in improving the intercity travel sector.

These entrepreneurs are solving local challenges through technology, and the support they’ve received is helping them scale their solutions.