From 1 to 3 June 2026, the Embassy of Switzerland in Tanzania hosted the second edition of the Tanzania Impact Investment Forum (TIIF) in Dar es Salaam, bringing together more than 300 investors, small and medium-sized enterprises (SMEs), development finance institutions, government representatives, and ecosystem partners.
Held under the theme “Unlocking Growth Capital: Investing in High-Impact SMEs and Transformational Projects,” the three-day forum focused on financing high-impact SMEs, mobilising blended finance for transformational projects, advancing climate-smart growth, and strengthening digital market systems as enablers of scale.
The forum’s headline outcome was the official launch of Invest for Impact Tanzania (IIT), a new market creation platform designed to connect businesses with investors and accelerate investment transactions.
The event also saw the signing of a Memorandum of Understanding between IIT and the East Africa Venture Capital Association (EAVCA), aimed at strengthening Tanzania’s visibility among regional investors, supporting transaction development, and facilitating policy dialogue to improve the investment environment.
Launch of Invest for Impact Tanzania (IIT)
The Head of Private Sector Development at the British High Commission, Pretty Fati, officially launched IIT during the forum, describing the platform as a connector, facilitator, and ecosystem builder.
The initiative focuses on high-potential enterprises capable of creating jobs and generating climate-related impact.
According to Fati, IIT had already facilitated USD 1.8 million in completed transactions from a USD 2 million pipeline prior to its official launch.
Speakers across the forum highlighted Tanzania’s estimated USD 30 to USD 40 billion financing gap through to 2030, with approximately 70% of the financing required to achieve Tanzania’s Vision 2050 objectives expected to come from the private sector.
Participants from the Tanzania Startup Association provided updates on efforts to develop a national startup policy and highlighted a proposed government-backed USD 50 million Fund of Funds currently under review, which is expected to act as an anchor investor in specialised funds financing Tanzanian MSMEs and could mobilise approximately USD 200 million over a ten-year period.
Day 1: Investment Readiness and Enabling Environment
The first day of the forum centred on the challenges and opportunities facing enterprises seeking growth capital, particularly businesses that have moved beyond the startup stage but remain too small to attract large institutional investments.
The first major discussion, titled “The Investor’s Lens: Deployment of Capital in East Africa,” brought together regional and international investors to discuss how capital is being deployed across the region.
Panelists noted that while significant capital is available for Africa, many Tanzanian businesses struggle to secure financing due to gaps in visibility, investment readiness, and scale.
Representatives from investment institutions emphasised that investors continue to prioritise strong business models, predictable cash flows, transparent management structures, and scalability when evaluating investment opportunities.
The discussions focused on technical assistance and the importance of aligning entrepreneurs with suitable investors, and noted that businesses require more than capital and often need mentorship, networks, strategic guidance, and operational support to achieve sustainable growth.
The second major session, titled “Building an Enabling Environment,” focused on the broader ecosystem needed to support entrepreneurship and investment.
Panelists discussed infrastructure challenges facing African businesses, noting that entrepreneurs are often required to build logistics systems, distribution networks, and operational infrastructure that would typically be available through third-party providers in developed markets.
The discussion further examined talent development, mentorship, and entrepreneurship culture, and participants called for greater support for local talent, stronger mentorship networks, and a shift towards viewing business failure as a learning opportunity rather than a stigma.
In partnership with Venture Capital for Africa (VC4A), 30 SMEs participated in investment readiness training ahead of the event, and 15 SMEs were selected to pitch their businesses to investors during the forum.
Breakout sessions explored climate financing and systemic approaches to climate interventions, as well as the role of ecosystem support organisations in preparing startups for investment and strengthening Tanzania’s entrepreneurial pipeline.
Day 2: Financing Solutions and Blended Finance
The second day of the event focused on practical financing solutions, blended finance structures, corporate governance, and new initiatives aimed at accelerating investment flows.
Third Way Partners Managing Director Aly Breedlove presented findings from a market assessment examining the viability of a startup and early-growth-stage investment fund for Tanzania.
Breedlove reported that Tanzania received only 1% of startup funding deployed across Africa between 2020 and 2025 despite significant growth in entrepreneurial activity, with startup numbers increasing from approximately 840 to more than 1,000 and investment deal volumes rising sixfold.
Her presentation identified a significant funding gap in the USD 250,000 to USD 2,000,000 range, with approximately 75% of transactions remaining below USD 250,000.
The presentation also highlighted sectoral imbalances in investment flows, noting that agriculture receives only 5% to 6% of available funding despite its importance to Tanzania’s economy, while energy and water projects account for more than 40% of transaction value.
To address these challenges, Breedlove advocated for blended finance structures that combine concessional and commercial capital to reduce risk and attract private investors.
A panel discussion on blended finance further highlighted financing constraints facing Tanzanian businesses, with speakers noting that local commercial banks often require collateral worth up to 125% of loan values, and that blended finance mechanisms can help reduce investment risks and unlock greater private sector participation.
A separate presentation focused on Impact-Linked Finance (ILF), an approach that rewards companies financially when they achieve agreed social or environmental outcomes, including benefits such as reduced interest rates when predefined impact targets are met.
Corporate governance emerged as another major topic, with discussions involving representatives from the International Finance Corporation (IFC), Inter Capital, and other institutions focusing on transparency, accountability, and decision-making structures, with speakers stressing that governance is frequently overlooked by growing businesses despite being critical to attracting investment.
Participants also examined challenges facing women and youth entrepreneurs, including limited access to collateral, financing, and business support services.
Breakout sessions included topics on leveraging Artificial Intelligence (AI) and Industry 4.0 technologies to enhance manufacturing competitiveness, and the role of technical assistance in unlocking funding opportunities for SMEs.
Tanzania’s $40 Billion Financing Gap
Switzerland’s Ambassador to Tanzania, Nicole Providoli, reflected on the growth of the initiative since its inaugural edition in 2025.
“The most persistent financing gap in Tanzania is not at the very early stage nor at a large infrastructure level. It is in the middle. The so-called missing middle. These are businesses expanding access to essential services, strengthening livelihoods, and opening new economic opportunities. These businesses deserve capital,” said Providoli.
British High Commissioner to Tanzania Marian Young described Tanzania as one of East Africa’s most attractive long-term investment destinations.
“Tanzania is growing at 5% to 6% annually, and with a population approaching 70 million, it is increasingly seen as one of East Africa’s most compelling long-term investment destinations. However, we face an estimated USD 30 billion to USD 40 billion financing gap through to 2030,” said Young.
Young also highlighted that British International Investment (BII) has increased its Tanzania portfolio from USD 46 million to USD 120 million over the last three years.
Stanbic Bank Tanzania Chief Executive Officer Manzi Rwegasira highlighted the country’s demographic opportunity.
“Tanzania is young — more than 60% of our people are under the age of 25. This is not a problem to be managed; it is the largest concentration of ambition and energy on the continent,” said Rwegasira.
Norfund Investment Manager Elijah Odolo highlighted that the Fund deploys approximately USD 650 million across East Africa, but that only around USD 120 million has reached Tanzania directly or indirectly, with investment decisions increasingly incorporating environmental, social, and governance factors alongside financial performance.
EAVCA’s Chief Executive Officer, Christine Maina, noted that East Africa attracted approximately USD 1.4 billion across more than 500 private capital deals between 2021 and 2025, with venture capital accounting for roughly 60% of total value, but that many smaller enterprises remain overlooked because investors often lack visibility into emerging businesses seeking growth capital.
KPMG Advisory Partner Andrew Njiraini noted that approximately USD 2 billion in venture capital is deployed annually across Africa, yet Tanzania continues to receive only a small fraction.
“The issue is not capital because when you look at the global venture capital, about USD 2 billion annually is being unveiled for the African continent. But why is it that other countries, just neighbours like Kenya, got USD 650 million and South Africa USD 400 million, while Tanzania only received between USD 25 million and USD 35 million?” said Njiraini.
Day 3: Site Visits Connect Investors with Enterprises
The third and final day of TIIF 2026 was dedicated to site visits, allowing investors, development partners, and ecosystem stakeholders to visit selected enterprises and gain first-hand insight into business operations.
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