Mzumbe University - C4YET

C4YET PROJECT , Conference on Financing Frontier Arusha.

January 24th, 2024

C4YET PROJECT , Conference on Financing Frontier Arusha

January 24th, 2024

Workshop Dissemination

ABOUT THE PROJECT

How Internet-Based Funding Can Create Jobs for Youth in Tanzania

Youth in Tanzania are highly entrepreneurial and generate a wide range of innovative business ideas. However, despite this potential, access to finance remains one of the most persistent barriers to transforming these ideas into viable enterprises. In particular, many young entrepreneurs face difficulties accessing alternative financing channels, including internet-based funding mechanisms such as crowdfunding. Crowdfunding enables entrepreneurs to raise capital by matching business ideas with small financial contributions from a large number of individuals through online platforms. This model has the potential to promote self-employment, stimulate enterprise creation, and reduce youth unemployment. Youth of working age constitute more than half of Tanzania’s productive population, yet many continue to face significant challenges in accessing formal employment. Unlocking innovative financing mechanisms is therefore critical for inclusive economic growth. The Crowdfunding for Youth Entrepreneurship in Tanzania (C4YET) project responds to this challenge by addressing the structural, informational, and regulatory barriers that limit youth access to internet-based funding. The project examines how crowdfunding can be adapted and scaled as a sustainable financing option for youth-led start-ups in Tanzania.

Project Overview

The C4YET project received five-year funding from February 2019 to January 2024, with a no-cost extension granted until 31 March 2026, to conduct in-depth research on how Tanzanian youth can access startup financing through internet-based crowdfunding.

The project is implemented by a consortium of three partner institutions:

  • Mzumbe University, Tanzania
  • Small Industries Development Organization (SIDO), Tanzania
  • Copenhagen Business School (CBS), Denmark

Together, these institutions combine academic research excellence with practical enterprise development and policy engagement.

Research Approach and Key Activities

The C4YET project seeks to generate a deeper understanding of the conditions under which crowdfunding can function effectively as a financing mechanism for entrepreneurs. At its core, the project addresses a fundamental question: What determines successful crowdfunding for youth entrepreneurs in Tanzania?

To answer this question and build national capacity in crowdfunding, the project adopted a multi-stage research design comprising:

  • Exploratory Research Phase
  • Laboratory Experiments
  • Randomised Field Experiments

Policy Engagement and Impact

Beyond academic contributions, C4YET places strong emphasis on policy relevance and practical impact. The project has developed a Policy Brief on Crowdfunding, which has been shared with key national stakeholders to inform emerging policy and regulatory discussions.

These evidence-based outputs provide recommendations to support the design and refinement of national crowdfunding frameworks, with engagement targeting institutions such as:

  • The Ministry of Finance
  • The Ministry of Youth
  • The Ministry of Industry, Trade and Investment
  • Financial sector regulators, including the Capital Markets and Securities Authority (CMSA) and the Bank of Tanzania

Through this engagement, C4YET contributes to strengthening the policy environment for inclusive digital finance and youth entrepreneurship in Tanzania.

PUBLICATION AND DISSEMINATION LIST

Publications in international peer-reviewed journals, other scientific journals, book chapters/articles, abstracts for conferences, policy briefs and other forms of publication. Only publications where the MFA is mentioned as funder should be included in this list

Loan Officers’ Crowdfunding Awareness and Practice: The Survey among Microfinance Institutions in Emerging Economies.

Kavishe, W. F., Isaga, N., & Daudi, P. N. (2024)

African Journal of Innovation and Entrepreneurship (AJIE), 3(3), 289.

View Publication

Interaction Effect Between Loan Officers’ Characteristics and Loan Default Rate on Crowdfunding Approval

NsubiliIsaga, W. F. K., & Ndaki, D. P. (2024)

Pan-African Journal of Business Management, 8(1), 125-142

View Publication

Environmental Factors and Adoption of Prosocial Crowdfunding in Microfinance Institutions in Tanzania.

Marko, M., Petro, H., & Kibona, D. (2023)

Journal of Language, Technology & Entrepreneurship in Africa, 14(2).

View Publication

Environmental Factors and Adoption of Prosocial Crowdfunding in Microfinance Institutions in Tanzania

Moses Bulenge Marko, Hawa Tundui Petro, Deogratius Kibona

Journal of Language, Technology & Entrepreneurship in Africa (JOLTE), VOL 14 No.2 2023

View Publication

Attributes of Prosocial Crowdfunding Innovation and its Adoption in Microfinance Institutions in Tanzania.

Moses, M., Petro, H., & Meela, D. (2023).

African Journal of Innovation and Entrepreneurship (AJIE), 2(2), 29

View Publication

Extrinsic Motivation toward Entrepreneurs’ Intention to Adopt Crowdfunding: The Case of Kiva Lending Crowdfunding.

Ndumbaro, F., Mofulu, G., & Daudi, P. N. (2023).

African Journal of Innovation and Entrepreneurship (AJIE), 2(1), 103

View Publication

Intrinsic Motivation on Entrepreneurs' Intention to Adopt Crowdfunding: The Case of Kiva Lending Crowdfunding.

Ndumbaro, F., Mofulu, G., & Daudi, P. N. (2023).

Pan-African Journal of Business Management, 7(2), 214-235

View Publication

Crowding in Crowdfunding: Monetary Rewards Complement Prosocial Motivations in Online Social Lending Communities.

Hadar Gafni, Orsola Garofalo, Lars Bo Jeppesen and Diego Zunino.

Working Paper · 2021

PDF Downlod Paper

Participants

We gratefully acknowledge the support of our sponsors and partners.

Project Team

Research Team (South)

South Team Member

Dr. Nsubili Isaga Mwalukasa

Project Coordinator (Tanzania)

Mzumbe University, Tanzania

South Team Member

Dr. Daudi Pascal Ndaki

Project Member

Mzumbe University, Tanzania

South Team Member

Prof. Hawa Petro Tundui

Project Member

Mzumbe University, Tanzania

South Team Member

Dr. Davis Jason Meela

Former Project Member (now retired)

Mzumbe University, Tanzania

South Team Member

Prof. Honest Prosper Ngowi (Late)

Former Project Member

Mzumbe University, Tanzania

South Team Member

Ms. Halima Kazindogo

Project Member

Small Industries Development Organization, Tanzania

South Team Member

Mr. Stephen Bondo

Project Member

Small Industries Development Organization, Tanzania

Research Team (North)

North Team Member

Prof. Lars Bo Jeppesen

Project Coordinator (Denmark)

Copenhagen Business School, Denmark.

North Team Member

Prof. Orsola Garofalo

Project Member

Copenhagen Business School, Denmark

North Team Member

Prof. Diego Zunino

Project Member

Copenhagen Business School, Denmark

Graduated PhD Candidates

North Team Member

Dr. Wilfred Kavishe

Mzumbe University, Tanzania.

North Team Member

Dr. Felista Ndumbaro

Open University of Tanzania

North Team Member

Dr. Moses Marko

Mzumbe University, Tanzania