Lesson from thriving startups hub in Korea
- TZ ready to take off
GREAT lesson for Tanzania delegation during the recent official and working visit of President Samia Suluhu Hassan to the Republic of Korea has been drawn from many areas, notable being a mega startup that is significantly among the driving force for the Asian nation’s gigantic economy.
President Samia’s visits to Korea from May 31st to June 6th this year, was aimed at further strengthening diplomatic relations, which have spanned 32 years. Republic of Korea stands as a strategic partner to Tanzania, and the President’s visit represents progress towards her vision of enhancing Tanzania international standing.
This visit marked another milestone for President Samia in her efforts to forge strategic partnerships for the social-economic development of Tanzania.
Republic of Korea, having successfully transitioned from an underdeveloped country to a developed nation within just 50 years – a feat often referred to as a ‘Miracle of the Han River’ – offers valuable lesson that was shared and exchanged during her discussions with host President Yoon Suk Yeol.
President Samia included in her entourage, members of the Tanzania Startups Association (TSA), the objective being to let them get firsthand experience from the much-developed startups in the Asian nation.
And, indeed, the sixth phase government led by President Samia has already shown commitment to go the Korean way, with the establishment of the state-of-the-art Technology Hub at Nala in Dodoma Region.
The country has taken a lesson from Republic of Korea, which is an emerging land for startups, and its ‘Silicon Valley’ is the sprawling state-of-the-art campus of Pangyo Techno Valley.
The complex covers an area of about 661,000 m2 and focuses on information technology, biotech, cultural technology and fusion technology.
The site has been developed to foster innovation and collaboration between startups, established companies and research institutions. It is home to over 1,200 technology companies, including major Korean companies such as Samsung, LG and SK Telecom.
The place is the hotbed for startups and a thriving business development area located at Pangyo, Seongnam in Gyeongg Province. When one visits the place, their eyes will never cease to wonder the kind of development and innovations emerging in the Republic of Korea.
Startups in the Pangyo Techno Valley have access to world-class facilities, including direct research facilities, research developing facilities, specialised graduate schools, and job training centres. The valley also has a Global R&D centre that provides conference and education rooms.
Startups in the Pangyo Techno Valley have access to a range of resources and expertise, making it an ideal location for entrepreneurs looking to launch their businesses.
The valley has attracted a range of companies, including AhnLab Inc, CHA group consortium, Gabia Inc, Kakao, Nexon, Paymentwall, SK-Chemical, SK Planet, and YURA Corporation.
Republic of Korean government always believes in empowering and supporting private sector, especially local companies to thrive.
They support the companies to grow for them to have a positive impact on the country’s economy. No wonder, companies such as KIA, Hyundai, Samsung, POSCO International, LG, LX and several others have become the household names in the world.
During the President’s visit, a delegation led by Minister for Information, Communication and Information Technology Mr Nape Nnauye had an opportunity to visit the Pangyo Techno Valley.
Minister Nape said during the visit at the R&D Complex that Tanzania will soon have its own mega centre for incubating startups.
“We’ve come here to learn from our fellows in Republic of Korea, who have established this centre to uplift innovators in their country as well as attracting people from other parts of the world to come and have access to this facility,” he said.
He added, “The government felt it was wise to bring leaders of startups in Tanzania at this centre for them to see and learn how others are doing, and indeed, they have borrowed leaf from this establishment,” said Mr Nape.
According to Minister Nape, Pangyo Techno Valley has evolved as among the most successful centres in the world, saying this is why Prime Minister Kassim Majaliwa visited the centre in October 2022 and requested the Korean government to support Tanzania’s initiative to establish similar facility.
“We have also come here as a follow up of what the Prime Minister had initiated. He managed to convince the Korean government to fund establishment of the centre in Tanzania and they (Republic of Korea) developed interest to collaborate with us by providing funds to establish the ICT centre in Dodoma Region, which will also encompass a centre to incubate startups,” he added.
Minister Nape said much as Tanzanians would be encouraged to apply for the available opportunities to have access to training at the centre in Republic of Korea, the government feels it was crucial to establish its own centre in Dodoma and by July this year, the ministry expects to get funds for the construction project to kick off. He said the centre in Dodoma will be supervised by the ministry.
“Currently, we are doing a feasibility study, which is financed by the government of South Korea to the tune of 600,000 US dollars. The feasibility study will be completed this June and then the construction will start immediately by July this year. We, as a country are committed to digital transformation in enhancing human capital,” insisted Mr Nape.
At Pangyo Techno Valley, there are a lot of opportunities for startups. The centre attracts innovators from various parts of the world to use the facility, unfortunately, only one per cent of those coming visiting the facility are from Africa. They get few applications from Africa compared to other continents.
“Here they promote their programmes, where they seek to support startups in various parts of the world, unfortunately, few from Africa including Tanzania apply for this opportunity.
“It is important that we learn how they run the centre and several programmes and this will give us firsthand experience on how to run and use the programmes at our centre in Dodoma,” said the minister.
He said the major problem for startups in Tanzania is the absence of legal framework that guide the emerging sector.
“We are currently in a process of coming up with the policy and law that will guide startups. We also need to have a centre that will incubate innovations, and the Koreans have developed interest to cooperate with Tanzania in this venture,” he said.
“We want to invest in ICT’s human capital …we want to prepare our youth to become global human capital, allowing them to work and live anywhere in the world and our visit here (Republic of Korera) is a step towards the right direction. This is part of success attained in the visit of President Samia here,” said Mr Nape.
Chief Executive Officer (CEO) of Tanzania Startups Association (TSA) Zahoro Muhaji said the ecology of startups in Tanzania is still embryonic but growing very fast, with over 700 startups registered. The system, he said has also attracted huge investments in the country’s economy. He said for the past three years, startups attracted over 2million US dollars (about 5bn/-) in investments.
“Challenges facing startups in Tanzania is the absence of legal framework that guide the emerging sector, as well as acute shortage of human and financial capital. If these challenges are sorted out, we will push our ecosystem to the higher level and this is why, we have been engaging with the government to support the startups,” he said.
During the visit, TSA and the Korea-Africa Foundation (KAF) signed a Memorandum of Understanding (MoU) to support the development of Tanzania’s startup ecosystem.
The signing ceremony took place during the Korea Youth Startup Forum session on June 5th, 2024. The MoU outlined a comprehensive framework for collaboration in three key areas.
Speaking after the signing ceremony the TSA Board Member Mr Jumanne Mtambalike unveiled the areas as developing exchange programmes, which will facilitate the exchange of knowledge and best practices between Korean and Tanzanian startups to foster mutual learning and growth.
Another area is collaboration on information sharing which will pave the way for the sharing of valuable information regarding startups and youth development initiatives between the two countries, empowering both ecosystems to make informed decisions and develop effective strategies for fostering innovation and entrepreneurship.
Joint research projects and studies are among the areas which will help to undertake collaborative research projects and studies on topics relevant to the development of both startup ecosystems.
“By leveraging KAF’s extensive resources, expertise, and government backing, the MoU presents a powerful platform for propelling the growth and success of Tanzania’s startup ecosystem.
“It signifies a long-term commitment from the Korean government to fostering a mutually beneficial partnership that will contribute to the flourishing of innovation and entrepreneurship in both countries,” said Mr Mtambalike who is also a Founder and Chief Executive Officer of Sahara Ventures where its mission is to build a stable innovation, technology and entrepreneurship ecosystem in Africa through consultancy and investment.
On his part, Muhaji said MoU will generate valuable insights that can be used to address challenges and optimise support structures for startups in both Tanzania and Korea.
“The Memorandum of Understanding between TSA and KAF represents a strategic partnership and a significant commitment from the Korean government to support the development of Tanzania’s startup ecosystem,” said Mr Muhaji.
“We have had a great working relationship with KAF in the past, but reaching this stage of signing an MoU signifies the potential they see in our Tanzania startup ecosystem.
This is a great opportunity for the youth of Tanzania to advance in their innovations and entrepreneurial journeys,” Mr Muhaji stressed.
