Catalysing and Scaling Innovation In Tanzania

CATALYSING AND SCALING Innovation in Tanzania: A review of approaches • Where is support needed?
Growth
SCALE
The organisation and number of users and clients using
the innovation grow. Robust systems and processes –
including for finance, legal issues, HR, logistics, etc. – are
put in place and properly managed.
National coverage and international growth through
private investment or government adoption increases.
Different user groups, and number of users/beneficiaries
grow rapidly. Localised versions, subcontracting, and new
partnerships are developed.
THE Missing Middle
Technical assistance, mentoring, capacity building,
support for connections to other donors/funders,
corporates, and the government. Competitive grants and
challenge fund grants.
Range: US$100,000 to US$1.5 million.
Challenge funds
Accelerators
Angel investor network
Technical assistance, coaching, and connections
to international organisations, venture capitalists,
international and national corporate companies, and/or
governments. Grants, loans, and equity investments.
Range: US$10 million upwards.
Investors
Challenge funds
Banks
The first concrete evidence of impact emerges at
the growth stage. Few funders are operating in this
space; the investment needs are larger and delivering
support is resource intensive. The biggest changes are
organisational with a focus on legal aspects, finance, HR,
logistics, and other systems and processes. The funding
is still predominantly in the form of grants, but there is a
need for a broader spectrum of financial instruments and
patient capital including repayable loans, public–private
partnerships, and social impact bonds.
Through scaling, significant impact can be achieved and
real change at national and international scale becomes
possible. In order to scale an innovation, the organisation
managing it – public or private – needs to be large enough
to handle the necessary investment, and mature enough
to have the necessary financial, monitoring, and reporting
systems in place. Fewer innovators reach this level of
maturity and many funders targeting scale operate in
multiple countries. The mix of funders is more diverse at
this stage with some investors and corporates present
alongside donors. Typically, the level of investment available
is still too high for many innovators to absorb; hence, there
is a need for more financial instruments to support scale.
connections between ecosystem players. Hubs and other ecosystem enablers are important in supporting and growing the
the skills needed to support innovations at the growth and scale stages. Linkages with industry and government are also weak.
organisations could also benefit from more support in building skills and expanding their curriculum in relation to innovation.
Innovation pipeline continues over page
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