Deadline: 30-Jun-23
FUNGUO invites applications from registered entities that can offer innovative and scalable solutions addressing one or more of the challenges hindering the advancement of the Sustainable Development Goals (SDGs).
The Funguo Innovation Programme (also simply referred to as FUNGUO) is a UNDP Initiative funded by the European Union as part of the “Business Environment, Growth and Innovation” (BEGIN) Programme. Other funders include UNDP itself and the UK Government through the Africa Technology and Innovation Partnerships (ATIP).
The programme aims to increase the number of successfully scaled innovative startup companies. It does so by addressing the challenges and gaps in the innovation ecosystem that hinder the scaling of innovative impact ventures, while fostering an environment that supports innovation for development and empowers innovators, entrepreneurs, and enablers. UNDP Tanzania leads the programme implementation in partnership with UNCDF, and works in close collaboration with COSTECH, ICT Commission among and other partners.
Pillars
- The three main pillars of the programme are:
- Innovation Financing: This includes, but not be limited to, building a viable pipeline of innovative impact ventures/ start-ups, working with partners to avail relevant and flexible financial and technical support to those ventures, and ultimately setting up an autonomous Funguo Innovation Facility that will leverage public funding to unlock private / third-party financing and investment.
- Innovation Service Delivery: The programme contributes to strengthening the capacity of service delivery institutions (hubs, incubators, accelerators, professional business development services providers, etc…) to support and lead innovative start-ups to a stage where they can attract impact and/or commercial investments.
- Innovation Enabling Environment: The programme works with and support policy makers and other innovation stakeholders to promote innovation & technology for development through conducive, progressive, and friendly policies and regulations, strategic dialogues, and engagement across the innovation ecosystem.
- Through a combination of targeted initiatives across the three key pillars, the Funguo Innovation Programme is designed to lay the foundation for, and unlock the potential of, Tanzanian innovators and entrepreneurs to create scalable start-ups capable of attracting impact and commercial investments. The more start-ups are supported and scaled, the more jobs will be created, and more income will be generated, leading to sustainable and inclusive development. The programme is initially being funded by UNDP, the European Union Delegation to Tanzania and EAC, as well as the Foreign and Commonwealth Development Office (FCDO). The implementation is being led by UNDP Tanzania in partnership with the United Nations Capital Development Fund, UNCDF.
Scope of Work
- The primary goal of this Request for Applications (RFA) is to provide catalytic funding to Tanzanian impact-driven startups and innovative SMEs, supporting their scalability and attracting external financing. By addressing the funding gap for smaller organizations with proven business models and market traction, the aim is to fund ventures capable of reaching a wide audience and contributing to long-term success. This funding opportunity also emphasizes the promotion and support of women-led and women-founded businesses, advancing gender equality and empowerment, while contributing to the overall development goals of the country. Building on previous successes, the RFA seeks to identify startups with potential investors willing to take the first bet and help de-risk them, fostering a strong pipeline of impactful startups and scalable SMEs with innovative business models that can attract further funding opportunities.
- How UNCDF works with successful applicants
- In the RFA, UNCDF together with Funguo Programme Team envisions the provision of support align with the area of intervention.
- Grant Funding and Seed Capital: Provide catalytic funding in the form of grants or seed capital to selected startups and SMEs. This funding should focus on organizations with proven business models, market traction, and the potential for scalability. The goal is to bridge the funding gap for smaller organizations and help them attract further investments.
- Networking and Investor Matchmaking: Facilitate networking opportunities between the applicants and potential investors. Organize events, pitch sessions, or investor showcases where startups and SMEs can present their ideas and innovations to a targeted audience of investors. This helps to establish connections and create a pipeline for future funding opportunities.
- Gender Equality and Empowerment Initiatives: Develop initiatives and programs specifically targeted at supporting women-led and women-founded businesses. This could include tailored mentorship programs, networking events, and funding opportunities reserved for women entrepreneurs. The aim is to promote gender equality, empower women in business, and create a supportive ecosystem for their success.
- Monitoring and Evaluation: Implement a robust monitoring and evaluation framework to track the progress and impact of the funded startups and SMEs. Regular progress reports, impact assessments, and performance evaluations will help measure the success of the funding program and identify areas for improvement.
- Access to Market Opportunities: Facilitate access to market opportunities for the selected startups and SMEs. This could involve establishing partnerships with key industry players, facilitating introductions to potential customers or distribution channels, and providing support for market entry and expansion.
- In the RFA, UNCDF together with Funguo Programme Team envisions the provision of support align with the area of intervention.
Funding Information
- FUNGUO’s contribution will be in the form of an equity-free responsible grant ranging from TZS 50 million to TZS 100 million.
- Have not raised more than $100,000 in funding (in Equity or debt) to date.
- Project Duration: The grant duration is expected to be a 12-month duration.
Target Segment: The primary target of the RFA are Startup companies and Innovative SMEs in Tanzania.
Geographical Scope: The Startup or Innovative SME should be registered and operating in Tanzania – any region (mainland or Zanzibar).
Eligibility Criteria
- This RFA is open to ventures that meet the following basic criteria:
- Legally registered in Tanzania (incorporated or with a business name registration).
- Majority-owned by Tanzanian citizens (by 51% and above)
- Beyond ideation and pilot stage, with a minimum viable product that has some market traction (post revenue).
- For-profit entities or market-oriented social enterprises.
- Have not raised more than $100,000 in funding (in Equity or debt) to date.
For more information, visit Funguo Innovation Programme.
