Editor’s note: African-Startups is a sister publication of EU-Startups, bringing trusted coverage of startups, venture capital, and innovation across Africa.
Financial Sector Deepening Tanzania (FSDT), with support from the European Union, has introduced the MSME Impact Grant Fund (IGF).
This fund offers non-repayable grants of up to $11,000 (TZS 30 million) to women- and youth-owned micro, small, and medium enterprises in mainland Tanzania and Zanzibar. KPMG Advisory Limited manages the fund. The IGF is part of the EU’s Inclusive Finance for Growth of Women and Youth MSMEs programme.
“The Impact Grant Fund combines catalytic grant financing with targeted business development support to help enterprises grow, create jobs and strengthen their economic impact in their respective regions,” said Eric Massinda, CEO of FSDT.
Beyond grant capital, participating enterprises will receive business development support to strengthen operations, scale their businesses, build resilience, and improve readiness to access future financing. Applications for the first funding cycle are now open in both English and Swahili.
The fund will initially target enterprises in 10 mainland regions: Morogoro, Manyara, Shinyanga, Rukwa, Kagera, Simiyu, Kigoma, Lindi, Mtwara, and Singida, as well as five areas across Zanzibar.
Priority sectors include climate-smart agriculture and agroforestry, sustainable fisheries and aquaculture, renewable energy, circular economy and waste management, biodiversity restoration, sustainable food cold chains, and digital solutions supporting climate mitigation and adaptation.
“The European Union is committed to promoting inclusive economic growth and expanding opportunities for women and young entrepreneurs. Through the Impact Grant Fund, we are investing in enterprises with the potential to grow, create jobs, strengthen local economies and contribute to a more inclusive and sustainable private sector,” said Marc Stalmans, head of cooperation at the EU Delegation to Tanzania and the East African Community.
FSDT works to create market systems that help underserved individuals, families, and businesses improve their lives. This includes tackling challenges, supporting new ideas, and making changes in the financial sector by partnering with various stakeholders.
