Inside Tanzania’s Tech Scene, with Isai Mathias
- Francesca De Gottardo
- 5 days ago
- 7 min read
What’s really happening in Tanzania’s startup world? Who’s building, who’s funding, and what’s getting in the way?
We spoke to Isai Mathias — founder of Atoms & Bits, a platform tracking innovation and tech trends in East Africa — to go beyond the headlines.
In this conversation, we covered everything from cross-cultural teams to AI hype, from Zanzibar’s startup dreams to the real bottlenecks in hiring and investment.No filters, no buzzwords. Just grounded insight from someone in the room — and often, in the WhatsApp group.
What’s the biggest misunderstanding about Tanzania’s tech scene?
Tanzania’s startup scene is growing fast — but from the outside, people often get the story wrong.
First: the ecosystem isn’t just about startups and investors. It’s a five-part system that includes government, academia, and customers too. Each part has its own logic, and when those parts don’t align, misunderstandings grow.
Second: we’re seen as a stable country, and that’s true. But political stability doesn’t mean doing business is easy. Setting up a company, applying for licenses, accessing incentives — all of it still comes with friction. The good news is: digital initiatives are improving the pace.
Third: founders don’t lack training. Many are Gen Z or late Millennials. They’ve watched every YouTube talk, joined endless webinars, gone through pitch competitions and workshops. What they really need? Funding. Even small checks — $5K to $50K — can be transformative. But this kind of early-stage capital is hard to come by.
Finally: international investors often assume that what works globally works here. But tax and regulatory frameworks are different. If you ignore that, you risk making bad calls.
The Tanzanian ecosystem has momentum. But to support it well, we need people who understand its details — not just its headlines.
Which startups will thrive in the next few years — and what should they avoid?
If you look at the data — like the latest report from the Tanzania Startup Association — you’ll see that the biggest slice of the ecosystem is still in agri-tech, followed by software companies and fintech. Each of these categories already counts over 100 active startups. But if we want to grow into the trillion-dollar economy outlined in the government’s 2050 vision, we’ll need more than just momentum. We’ll need precision.
Fintech will keep leading — but not in the traditional sense. The infrastructure is already there. Now it’s about building on top of it. We need startups that create value-added financial services: embedded finance, personalized credit tools, smarter integrations. Think: systems that help banks understand their customers better, or lending platforms that serve under-financed groups like pharmacies, small retailers, or freelancers.
Energy is another high-potential space — especially as TANESCO opens up to private partnerships. Smart energy startups are ready to move, but regulatory barriers are holding them back. If those open up, we’ll see real innovation in things like smart meters and decentralized power systems.
What about AI? It’s coming, but not yet. We’re still in a digital transformation phase. Until the basics are fully in place, AI will remain a luxury — not a driver. Companies are still asking how tech can increase revenue without inflating costs. That’s the real tension. The market has to digitize first. Then AI will follow.
Zanzibar wants to be a tech hub. What’s working — and what’s not?
When Silicon Zanzibar launched in 2022, there was real excitement — and for good reason. The government stepped in with frameworks, policies, and big ambitions to turn the island into more than just a tourist destination. But three years in, the change hasn’t quite materialized.
Let’s start with what is working: the government. Regulations are friendly, leaders are vocal on platforms like LinkedIn, and there’s clear political will to attract investment. But a tech ecosystem is more than government. It needs universities, private companies, talent, and — critically — a market. And that’s where things stall.
Zanzibar’s universities, like SUZA and IIT Madras, aren’t yet playing an active role in innovation. Unlike their counterparts in Dar es Salaam, they’re not consistently exposing students to startup culture, corporate partnerships, or competitive programs. Without strong academia-industry linkages, the pipeline from education to entrepreneurship remains weak.
Then there’s the market. Most companies in Zanzibar are in hospitality. There’s little incentive for tech startups to relocate if there’s no demand for their products. Offices become empty shells. Events — like the recent Zanzibar Tech Summit — draw tiny crowds, mostly from the mainland. And why should a founder spend 1M TZS to attend a three-day conference in Zanzibar if there’s no real traction on the island?
To make the “tech hub” narrative real, Zanzibar needs more than hype. It needs students hungry for innovation. It needs companies with real presence, not just signboards. It needs the kind of vibrancy that makes founders want to stay — not just visit. The potential is there. Especially in sectors like the blue economy, where Zanzibar has a natural advantage. But without a stronger local ecosystem — and real market readiness — the story won’t hold.
What does meaningful cross-cultural collaboration look like — and what gets in the way?
At Atoms & Bits, our head of partnerships is Moroccan. She brings with her years of experience from the Middle East — and watching her work here in Tanzania has taught me a lot about what cross-cultural collaboration really means.
There will always be cultural differences. Tanzanian business culture is specific, and sometimes slow to open up. But when you bring in people from other regions — whether it’s the diaspora or international professionals — you’re not just paying for a salary. You’re paying for exposure. For new ways of thinking. For knowledge you haven’t lived, paired with your own local context. Sure, money can be a barrier. But it doesn’t have to be. There are ways to build smart compensation strategies — from flexible salaries to equity — that work for both sides. What matters is the mindset.
Diaspora investors, especially those in the US and Middle East, are often ready to contribute. I’ve seen great examples where an expat Tanzanian funds and mentors a young local founder, creating a business neither could have built alone. The only thing missing is a proper system to connect them.
Of course, there will be tensions. That’s why having a diverse board or an experienced senior figure helps — someone who can translate between cultures when needed. But most of the time, it’s not the conflict that matters. It’s the numbers. If the business works, people find a way to work together.
At the end of the day, cross-cultural teams don’t just perform — they push everyone involved to grow. Personally, that’s been the biggest gain: understanding the limits of my own perspective, and learning how other cultures get things done.
What foreign founders get wrong — and how to avoid it?
After years working with foreign investors in East Africa, I’ve seen a few patterns repeat. The mistakes aren’t always dramatic — but they add up. And most of them could be avoided with better local insight.
Legal frameworks are the #1 trap. Many founders assume international norms apply here. They don’t. Labor law, in particular, is a minefield — firing an employee the “wrong” way can land you in court, and you’ll almost certainly lose. You need a seasoned local lawyer from day one. Not just for paperwork, but for ongoing support with contracts, licenses, and compliance.
The same goes for taxes: if you don’t understand the system — or work with someone who does — you’ll trip over avoidable problems.
Then there’s due diligence. Too many foreign investors trust too fast. They partner with the wrong supplier, rent from the wrong landlord, or hire the wrong person — and find out too late. Tanzania has great talent and reliable partners. But you have to verify. Don’t skip the basics.
And finally: market research. This one’s huge. Don’t build a business around assumptions. Just because hospitality is booming doesn’t mean every location in Zanzibar will work. Just because Masaki is trendy doesn’t mean your Airbnb will succeed. Ask around. Study reports. Visit in person. Understand local pricing — because what works in New York or Lagos may flop in Dar.
Starting a company here isn’t impossible. But it is different. Do your homework. Ask local questions. And listen before you build.
Is there a talent shortage — or just the wrong approach to hiring in Tanzania and Zanzibar?
When people talk about a “lack of local talent” in Tanzania or Zanzibar, I always ask: lack of talent compared to what? Too often, the complaint comes from someone who studied in Geneva, got a master’s in the UK, then moved back home and is shocked by the gap. But what about the young professional who grew up in a family surviving on less than $10 a day? Whose school had no books? Who touched their first computer at work? Most Tanzanians come from that reality — not from international schools.
So no, the problem isn’t that people are lazy. The problem is structural: education systems that don’t prepare people, and workplaces that expect global standards without offering fair pay, mentorship, or growth. If someone’s earning under 500K TZS a month and still has to support their family, how can you expect them to give their all?
Talent exists. But it’s not always visible on LinkedIn. In fact, less than 1M Tanzanians use the platform — out of a youth population of over 40 million. That’s why traditional recruiting methods don’t work here. You need to go where the people are: university meetups, WhatsApp communities, even Instagram. That’s what we do at Atoms & Bits — through job roundups and direct outreach.
Talent is not missing. What’s missing is the infrastructure to find, train, and retain it. And fixing that takes more than a job post.
About Isai Mathias
Isai Mathias is the founder of Atoms & Bits, a platform that blends journalism and data to track the trends shaping East Africa’s business and innovation landscape.
With a background in physics, journalism, and community development, he has worked as a research analyst for regional firms like TechCabal and Shikana Group, and now leads content and insights from Dar es Salaam.
His work reaches thousands of professionals each month — across Substack, WhatsApp, and wherever East African entrepreneurs are having real conversations.
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