Is Dar es Salaam a Good Place to Launch a Startup?

Where you start your company still matters – but sticking too closely to one location might limit what you’re able to build. In today’s startup landscape, geography shapes your path – but it doesn’t have to define your potential.

Dar es Salaam has emerged as a strong hub for entrepreneurship, offering access to funding, talent, and infrastructure. But with growing competition, rigid local programmes, and support often reserved for the most polished startups, relying solely on what’s nearby can slow you down – or hold you back.

In this article, we’ll explore what Dar es Salaam gets right – and where founders often run into friction. We’ll also show how EWOR offers an alternative: a global, remote-first platform that gives you access to funding, mentorship, and community – no matter where you’re based.

1. Access to Funding in Dar es Salaam

Funding is one of the most critical ingredients in building a successful startup – and Dar es Salaam offers a growing ecosystem of support. From venture capital firms to government grants and angel investors, founders in this region have several pathways to raise capital and gain early traction.

Dar es Salaam's early-stage funding scene is evolving, attracting increasing attention. Notable players include VC firms like Pontem Ventures and Warioba Ventures, which actively invest in local startups. Angel investors are also present, with networks like the Tanzania Business Angel Investors Accelerator working to build local capacity. Government initiatives and programs like FUNGUO, co-funded by the EU and UNDP, provide catalytic grants and soft loans, specifically targeting impact-driven and women-led businesses. Despite positive trends like a significant increase in overall startup funding in 2024, challenges remain. A major hurdle is the funding gap for non-fintech startups, as investment is disproportionately channeled into the fintech sector. Startups also face limited access to pre-seed and seed capital, regulatory hurdles, and a shortage of investor-ready businesses and technical talent.

A More Flexible Path Forward

In the wake of these challenges, founders don’t have to rely solely on local funding options. EWOR offers a more flexible path – providing up to €500,000 in early-stage capital But EWOR is more than a cheque. Our capital comes bundled with personalised support, investor-ready storytelling, and access to a network of over 400 active European investors – many of whom regularly participate in our Grand Pitch events. On average, EWOR fellows who complete the programme and pitch go on to raise €2 million in follow-on funding – over 10x more than founders from comparable European initiatives.

2. Innovation and Startup Culture  

Dar es Salaam has become a centre of innovation, with numerous tech hubs, coworking spaces, and accelerators that foster creativity and new ideas. The local startup culture is vibrant, with a growing community of entrepreneurs working together to push the boundaries of what’s possible.

Dar es Salaam has a growing startup and innovation ecosystem with increasing entrepreneurial activity. It is recognized as a notable ecosystem in East Africa. The city has numerous coworking spaces offering flexible options for individuals and teams, including dedicated desks and private offices. Tech events and workshops are also present, providing networking and learning opportunities. Support for startups exists through incubators, accelerators, and various programs. Some initiatives offer tailored support and mentorship for early-stage startups to help them formalize and connect with resources. While there are programs providing personalized guidance, the ecosystem also includes competitive, standardized programs like accelerators. The ecosystem supports startups at various stages, from early-stage with minimal viable products to more mature ventures. Access to funding remains a challenge for many startups.

For many entrepreneurs, the energy and resources available in Dar es Salaam can provide the ideal environment to test new ideas and gain early traction. The collaborative atmosphere allows founders to connect with fellow innovators and build networks that can help their startups grow.

While the local startup culture is vibrant, the support founders actually receive can be hit or miss. VCs might offer funding but little time. Angel investors often give advice, but it’s scattered and inconsistent. What’s more, many accelerators rely on a one-size-fits-all model that doesn’t reflect the needs of exceptional founders. In fast-moving, competitive ecosystems like Dar es Salaam, standing out is hard enough – getting the right kind of support shouldn’t be.

The Alternative to Cookie-Cutter Programmes

Finding a programme that truly adapts to your journey, not the other way around, is rare. However, EWOR offers the kind of depth and flexibility that many local programmes simply can’t match. Instead of following a fixed curriculum, our fellowships are modular and tailored – giving you the right support at the right time, based on where you are in your journey.

But the real strength of EWOR goes beyond structure. Fellows often describe the community as the most unexpected – and valuable – part of the experience. As some have put it: “The real magic lies in the community: the kind of conversations, insights, and connections that lead not only to breakthroughs – but to lasting friendships with some of the most fascinating people they’ve ever met”.

3. Talent and Workforce Availability

One of the greatest assets of launching a startup in Dar es Salaam is access to a skilled and diverse talent pool. With universities producing top-tier graduates in technology, business, and other fields, startups can tap into a wealth of expertise to help grow their teams.

Dar es Salaam has a growing talent pool for startups, significantly supported by its educational institutions. The University of Dar es Salaam (UDSM) is a major contributor, producing 19% of Tanzanian startup founders and integrating entrepreneurship into its programs. Other institutions like the Dar es Salaam Institute of Technology (DIT) and the Institute of Finance Management (IFM) also play a role. While there's a demand for specific digital skills like cybersecurity and AI, universities are increasing the supply of ICT graduates. Local talent supports entrepreneurial growth through various initiatives, including university-based incubators and innovation hubs like SmartLab and Buni Hub, which provide training, mentorship, and networking opportunities. These efforts help bridge the skills gap and foster a supportive ecosystem for startups.

Like funding, competition for talent can be fierce, especially for highly specialised roles in fields like software development or AI. For startups looking to scale quickly, hiring the right people at the right time can be a challenge, leading some founders to look outside the region for remote talent solutions.

Get Global While Local

While hiring locally in Dar es Salaam can be competitive and slow, EWOR gives you instant access to a global network of exceptional talent. Built by founders for founders, the EWOR team has launched and exited companies worth over €12 billion – and they bring that experience directly into your venture. It's not just about funding or surface-level advice; it's akin to having a co-founder from day one. 

The team collaborates closely with you to refine your idea, challenge your thinking, and support you through real-world decisions – just like a hands-on partner would. Moreover, with EWOR’s exclusive co-founder pool, you can find the right person to build with, regardless of their location.

4. Infrastructure and Support Systems

Dar es Salaam boasts a strong infrastructure that supports the growth of new businesses. From modern office spaces to high-speed internet, entrepreneurs have access to everything they need to run their startups smoothly. Government policies may also provide tax breaks, legal support, and other incentives that make starting a business more attractive in this region.

Dar es Salaam offers a growing ecosystem for startups with various support systems. This includes incubators like Buni Hub and Dar Teknohama Business Incubator (DTBi), accelerators such as SmartLab and Sahara Accelerator, and numerous co-working spaces like Seedspace and Kofisi. These resources provide mentorship, training, networking opportunities, and sometimes access to funding, helping businesses develop and scale. The Tanzanian government is increasingly supportive, recognizing startups' role in economic growth. Initiatives include developing a national startup policy to address challenges like funding access and regulatory hurdles. The government also supports programs through entities like the Tanzania Commission for Science and Technology (COSTECH) and invests in digital infrastructure. These efforts aim to create a more conducive environment for startups to thrive.

But what looks good on paper often proves more complicated in practice. Bureaucracy can be time-consuming and opaque, especially for first-time founders unfamiliar with local laws. Incorporation takes longer than expected. Accessing public funding often means navigating slow processes, strict requirements, or hard-to-reach advisors. And operational costs – from accounting to regulatory compliance – can quickly eat into early budgets. 

A System That Moves With You

With access to expert guidance, practical legal resources, and a network of experienced entrepreneurs who’ve built across a range of regulatory systems, EWOR is well positioned to help founders navigate the bureaucratic and legal complexities that often come with building in Dar es Salaam. Instead of wasting time figuring things out alone, you’ll have the tools and support to stay focused on what matters most – growing your venture.

And while we’re remote-first, our support is anything but distant. Through in-person gatherings like the EWOR House, city-based meetups, and our twice-yearly Grand Pitch event, you’ll still build meaningful relationships with investors, peers, and mentors. It’s a system that helps you focus on building – not just dealing with paperwork.

Can Dar es Salaam Be Considered the Best Place to Launch a Startup?

There’s no doubt that Dar es Salaam provides a vibrant environment for startups, with access to funding, innovation, talent, and infrastructure that can help entrepreneurs build successful businesses. For many, it’s a strong contender for the best place to launch a startup, thanks to its growing entrepreneurial ecosystem and support systems.

Entrepreneurs launching startups in Dar es Salaam face several hurdles. Competition is significant, with new businesses competing against established local companies and increasingly, foreign traders. Navigating the regulatory environment can be complex and time-consuming due to bureaucracy, requiring numerous permits and licenses. While the cost of living, including rent, can be relatively affordable compared to some global cities, the gap between average incomes and living costs can still pose a challenge. Additionally, securing funding remains difficult for many startups, particularly those outside the fintech sector, as traditional institutions may be hesitant to lend.

However, it’s important to remember that the location of a startup is no longer the be-all and end-all. In today’s digital age, location-independent options like EWOR allow entrepreneurs to access world-class mentorship, funding, and resources from anywhere in the world. Whether you’re based in Dar es Salaam or elsewhere, EWOR’s remote programmes are designed to support founders no matter where they are located.

So, while Dar es Salaam offers significant advantages, it’s worth considering options like EWOR that enable you to launch and scale your startup with global support – whether you’re in the heart of a bustling startup hub or working from a quiet corner of the world.

Image credits: by Andreas Brücker on Unsplash