New FUNGUO Funding Offers Up to TZS 100 Million for Forestry Startups and Launches General Call Prioritising Women and Youth-Led Innovation

The FUNGUO Innovation Programme, a flagship initiative co-funded by the European Union (EU), the Republic of Finland, and the British Government (FCDO), and implemented by UNDP Tanzania, has officially launched and announced two new funding opportunities to support Tanzanian entrepreneurs.

Funding Opportunity 1: #GreenCatalyst Initiative

First is the #GreenCatalyst Initiative, a dedicated funding window under FUNGUO that supports early-stage and scaling micro, small, and medium enterprises (MSMEs) operating within Tanzania’s forestry value chain.

It invites businesses innovating in areas such as woodcraft, bamboo products, eco-packaging, alternative charcoal, forest-friendly agribusiness, eco-tourism, and digital forestry services.

With a particular focus on enterprises based in or linked to the regions of Iringa, Njombe, Ruvuma, and Lindi, the initiative prioritises the youth, women, and persons with disabilities.

Selected ventures will receive catalytic funding ranging from TZS 10 million to TZS 100 million, alongside tailored technical support, business development assistance, access to markets, digital tools, and training in climate-smart innovation.

This initiative complements the Finland-supported FORLAND Project and contributes directly to job creation and sustainability within Tanzania’s green economy.

William Nambiza, Coordinator for Development Cooperation at the Embassy of Finland in Tanzania, commented, “Through #GreenCatalyst and our partnership with FORLAND, we’re committed to creating green jobs, protecting natural resources, and scaling local forestry innovation. We want to catalyze the growth of innovative businesses in the forestry value chain, and we encourage more entrepreneurs to apply and take advantage of this opportunity withing the #GreenCatalyst Initiative.”

Funding Opportunity 2: 4th General Call for Funding

Secondly, the programme has launched its 4th General Call for Funding. This call targets post-revenue, impact-driven Tanzanian startups, and poised for growth.

It invites businesses demonstrating innovation and the potential to contribute meaningfully to areas such as climate action, youth employment, digital transformation, and sustainable livelihoods.

Selected startups will receive non-equity catalytic grants, support to strengthen their investment readiness, access to mentorship opportunities, and greater visibility within Tanzania’s innovation ecosystem.

Karina Dzialowska, Head of Economics and Governance for the European Union in Tanzania, reaffirmed the EU’s commitment to fostering inclusive growth and innovation: “What began as a pilot 4 years ago has evolved into a cornerstone of Tanzania’s ecosystem. FUNGUO has become a pivotal accelerator, providing essential technical assistance and funding to help start-ups scale and unlock broader financial opportunities. I would like to especially reach out to our inspiring young women. We aim to award at least 40% of grants to female entrepreneurs, but whether we will achieve this goal will depend on your application.”

John Rutere, UNDP Tanzania’s Deputy Resident Representative, highlighted the significance of these opportunities, saying, “This is about building a resilient pipeline of businesses that solve real problems and drive sustainable change.”

He acknowledged the programme’s success, noting that over 5,000 jobs have been created and more than TZS 15 billion in additional funding mobilized, following TZS 5.2 billion invested in 61 startups.

Both calls are now open, and applications must be submitted online through the official FUNGUO website at funguo.org.