How Tanzania’s internet growth spurs economic opportunities

By Alfred Zacharia

The rapid growth of internet connectivity in Tanzania has become a critical driver of economic transformation.

A recent quarterly report by the Tanzania Communication Regulatory Authority (TCRA) shows that number of internet subscriptions increased by 5% within three months, from 39.3 million in June 2024 to 41.4 million in September 2024.

The milestone reflects the increasing integration of digital services into the Tanzanian economy and the transformative potential of technology in advancing socioeconomic development.

Mobile broadband dominates the internet landscape in Tanzania, with 22.9 million subscriptions by September 2024. Its widespread adoption underscores its role as the most accessible and affordable means of connectivity for millions of Tanzanians.

The extensive reach of mobile networks, coupled with the affordability of mobile data packages, has enabled individuals and businesses across urban and rural areas to tap into the digital economy.

The continued prevalence of 2G technology, with 18.3 million active subscriptions, highlights the persistent digital divide. While 2G provides basic internet services for underserved regions, the shift toward faster technologies like 4G and 5G is gaining momentum.

This transition is essential for increasing productivity, fostering innovation, and enhancing the overall user experience.

Mobile internet services not only connect individuals but also facilitate mobile money transactions, e-commerce, and access to government services, all of which are critical for economic inclusion.

Fiber-to-the-Home (FTTH) and Fiber-to-the-Office (FTTO) technologies, although limited in adoption, represent a growing niche with significant potential.

By September 2024, FTTH and FTTO services accounted for 59,743 and 10,449 subscriptions, respectively. These high-speed, reliable internet options cater primarily to businesses, government institutions, and affluent urban households.

The adoption of fiber-based technologies is vital for sectors requiring robust connectivity, such as finance, healthcare, and education. For example, e-learning platforms depend on stable and fast connections to deliver quality education, while healthcare providers use digital systems for telemedicine and data management.

Expanding fiber infrastructure could also attract foreign direct investment (FDI) by providing the connectivity required by multinational corporations seeking to establish operations in Tanzania.

Tanzania’s telecommunications market is fiercely competitive, with Vodacom holding a 32.5% market share, followed by Tigo (27.9%) and Airtel (25.1%). Halotel and TTCL complete the top five, with market shares of 10.8% and 3.7%, respectively.

The companies have invested heavily in infrastructure development and marketing strategies, making internet services more accessible and affordable to a broader population.

The competitive dynamics encourage continuous innovation, benefiting consumers through improved service quality and pricing.

Vodacom’s leadership position can be attributed to its extensive network coverage and diversified service offerings, including mobile money and enterprise solutions. Meanwhile, smaller players like TTCL leverage niche markets, such as government contracts and high-capacity fiber services, to remain competitive.

The average Tanzanian internet user consumed 4,855 MB of data per month as of September 2024, a figure that reflects growing reliance on the internet for daily activities.

From remote work to online shopping and entertainment, the increasing consumption of data highlights the deepening integration of digital solutions into personal and professional life.

The economic implications of this trend are profound. High data usage drives demand for digital services, creating opportunities for local tech startups and service providers.

E-commerce platforms, for instance, have seen increased traffic as more Tanzanians shop online.

Similarly, digital marketing has become a vital tool for businesses looking to reach wider audiences and contribute to job creation and economic diversification, as businesses invest in technology to enhance their operations.

Moreover, the rise in internet subscriptions, from 25.8 million in 2019 to 35.9 million in 2023, illustrates a steady digital transformation. This growth is supported by government initiatives aimed at improving ICT infrastructure, such as the National ICT Broadband Backbone (NICTBB), and partnerships with private sector players to expand connectivity.

Despite these gains, challenges persist, particularly in rural areas where connectivity remains limited. The affordability of devices and data packages continues to be a barrier for low-income households, restricting their access to the digital economy.

Additionally, the uneven distribution of infrastructure, with urban areas enjoying better services than rural regions, exacerbates the digital divide.

Addressing these challenges requires targeted investments and policies. Expanding the reach of 4G and accelerating the rollout of 5G can bridge the connectivity gap.

Government subsidies and public-private partnerships can also help lower the cost of internet services and devices, ensuring inclusivity in digital access.

The rapid expansion of internet connectivity offers Tanzania immense economic opportunities. Enhanced digital infrastructure can significantly boost productivity across various sectors.

In agriculture, for example, internet access enables farmers to access market information, weather forecasts, and modern farming techniques.

Similarly, the tourism industry benefits from online booking systems and digital marketing campaigns that attract international visitors.

Furthermore, improved internet connectivity facilitates the growth of e-government services, enabling citizens to access public services more efficiently.

This reduces bureaucratic hurdles and fosters transparency, contributing to better governance. The digitalization of financial services, particularly mobile money, has also played a transformative role in financial inclusion, allowing millions of unbanked Tanzanians to participate in the formal economy.

The education sector stands to gain significantly from better internet access. Online learning platforms and digital libraries provide students and teachers with resources that were previously inaccessible. This can help bridge educational disparities and improve overall literacy levels, which are crucial for long-term economic growth.

When compared to its East African counterparts, Tanzania’s internet growth is impressive but reveals areas for improvement.

Kenya, for instance, leads the region with over 46 million internet subscriptions and a higher penetration rate. This success can be attributed to early investments in ICT infrastructure and widespread adoption of mobile money services like M-Pesa.

Kenya’s robust e-commerce ecosystem and tech innovation hubs further solidify its position as a regional leader.

Uganda, with approximately 22 million internet subscriptions, is also experiencing steady growth. However, its market is less diversified than Tanzania’s, which is characterized by a balanced mix of mobile and fixed broadband services.

Rwanda, though smaller in population, has made significant strides in leveraging internet connectivity for development. The government’s focus on ICT policies and initiatives like the Kigali Innovation City exemplify Rwanda’s commitment to becoming a digital hub in Africa.

Tanzania’s consistent growth and expanding infrastructure position it as a strong contender for regional leadership in the digital economy. By addressing challenges such as affordability and rural connectivity, Tanzania can unlock its full potential and compete more effectively within the East African Community.

Tanzania’s internet landscape is evolving rapidly, driving economic opportunities and social transformation. The growth in internet subscriptions, rising data consumption, and competitive telecommunications market highlight the sector’s dynamic nature.

While challenges remain, particularly in achieving universal access, the ongoing investments in ICT infrastructure and digital inclusion initiatives pave the way for sustainable development.

As Tanzania continues to harness the transformative power of the internet, it has the potential to emerge as a regional leader in the digital economy. By capitalizing on its strengths and addressing its weaknesses, the country can create a more connected, innovative, and prosperous future for its citizens.

 

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TCRA and Comoro's ANADEN to forge ICT collaboration

By Our Reporter

The Tanzania Communications Regulatory Authority (TCRA) is poised to establish a collaborative partnership with the Comorian Agency for Digital Development (ANADEN) to advance Information and Communication Technology (ICT) initiatives. 

The announcement was made during a high-level knowledge-sharing visit by ANADEN’s delegation to TCRA headquarters on November 22, 2024.

The delegation, led by ANADEN Director General Said Moinuo Ahamada and accompanied by the Comorian Ambassador to Tanzania, Said Yakub, praised Tanzania’s remarkable progress in the communications sector. 

They acknowledged the country’s achievements as a model for digital transformation within the region.

Speaking on behalf of TCRA’s Director General, the Director of Sectoral Affairs, Engineer Felician Mwesigwa, expressed pride in Tanzania’s ICT milestones. 

He highlighted the establishment of a national data center as a key achievement, underscoring its role in supporting the country’s digital economy. Mwesigwa commended ANADEN for selecting Tanzania and TCRA as benchmarks for best practices in ICT.

Director Ahamada outlined the objectives of the visit, emphasizing ANADEN’s aspiration to replicate Tanzania’s successes in Comoros. 

Key areas of focus include developing systems to support government operations, such as establishing a national domain name registry and a national data center. 

These initiatives, Ahamada explained, aim to drive greater adoption of digital solutions in both public and private sectors.

“We aim to develop systems that will streamline government operations and promote digital growth,” Ahamada stated. He also noted that Comoros is expecting financial support from the African Development Bank (ADB) to strengthen its ICT infrastructure through ANADEN. “With these funds, we plan to enhance our network systems, upgrade the skills of our ICT professionals, and improve the interoperability of our platforms,” he added.

Ambassador Yakub echoed Ahamada’s sentiments, emphasizing the importance of regional collaboration. He expressed optimism about the upcoming signing of a formal partnership agreement between TCRA and ANADEN. 

“This partnership will enable the exchange of expertise, helping Comoros advance in ICT. We also look forward to welcoming Tanzanian specialists to Comoros to provide insights and recommendations for improving our systems,” he said.

The collaboration is expected to strengthen bilateral ties and contribute to the development of robust ICT ecosystems in both nations. By fostering knowledge exchange and capacity building, the partnership will position Tanzania and Comoros as leaders in the digital transformation of the region.

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Minister Chana urges public servants to embrace innovation

By Happiness Shayo - Arusha

The Minister for Natural Resources and Tourism, Ambassador Dr. Pindi Chana (MP), has urged public servants in her ministry and its affiliated institutions to approach their duties with creativity and innovation to propel the Natural Resources and Tourism sector forward.

Dr. Chana made these remarks today, December 21, 2024, during the 32nd Workers’ Council Meeting held at the Ngorongoro Tourism Center conference hall in Arusha.

"We must serve Tanzanians, who have entrusted us with this responsibility, with unparalleled dedication and creativity," emphasized Dr. Chana.

The minister also called on the ministry’s management to continue addressing the challenges and concerns raised by employees, ensuring that their grievances are resolved effectively. 

She highlighted the importance of using the council meeting as a platform to discuss workforce-related issues, enhance employee welfare, and focus on achieving the ministry’s strategic objectives.

Additionally, Dr. Chana directed the ministry’s management and affiliated institutions to establish a supportive environment to attract investors, safeguard the nation’s heritage for the benefit of all Tanzanians, and enhance the management and protection of resources for current and future generations.

Echoing her sentiments, the Permanent Secretary of the Ministry of Natural Resources and Tourism, Dr. Hassan Abbasi, reaffirmed the ministry’s commitment to prioritizing employee welfare and creating conducive working conditions.

“We are committed to making progress wherever possible. Our government continues to support us, and it is our responsibility to ensure that this work moves forward,” said Dr. Abbasi.

The meeting brought together the management of the Ministry of Natural Resources and Tourism, members of the Workers’ Council, leaders of the Trade Union of Government and Health Employees (TUGHE) at the national and regional levels, and representatives from institutions under the ministry.

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Loan plus and Swift Loan Sued for TZS 100 Million in Defamation Case for Spreading False Online Information

By Our Reporter, Arusha

Directors of digital lending companies Kisasi Finance and Awallet Africa Limited, operators of Loan Plus and Swift Loan platforms, have been given 14 days to pay TZS 100 million in damages for defamation and spreading false information online.

The companies, among 69 financial institutions suspended by the Bank of Tanzania (BOT) on November 21, 2024, for operating without proper licensing and failing to adhere to transparency regulations on fees, interest rates, debt collection, and data privacy, have allegedly continued their operations.

Speaking to reporters, John Shirima, an attorney with J&J Shirima Associates & Co., representing a group of 10 lawyers defending the complainant Mussa Juma, said the directors of Kisasi Finance and Awallet Africa Limited were issued a 14-day notice starting December 13, 2024. The notice demands payment of TZS 100 million in damages and a written apology.

Shirima revealed that the notice, also copied to BOT and the police, refers to a criminal case (ARS/RB/12589/2024) involving the use of obscene language online. Employees of the accused firms allegedly circulated defamatory messages on social media, falsely claiming that Mussa Juma’s mother had passed away and soliciting donations.

According to the lawyer, the accused employees used phone numbers 0774652645, 0755365471, and 0617512622 to issue threats and spread defamatory information online, pressuring Juma to make payments. They continued this behavior despite being informed that no debt was owed.

On December 12, 2024, the manager of Loan Plus, using number 0713694907, disseminated messages apologizing for spreading false information about Juma. However, the company’s employees persisted in their activities.

Hamis Mayomba, the head of the Legal and Human Rights Center (LHRC) in the Arusha region, criticized the companies for violating laws governing online conduct, privacy protection, and BOT regulations.

An employee of Loan Plus, Jamira Chakachaka, responded defiantly to the allegations, stating that the firm would continue its operations and spread defamatory information unless payments were made. She claimed, “Go wherever you want. Don’t think these are small companies. We have connections with government officials and even BOT. We’re still operational despite their directives, and even TCRA can’t stop us.”

Arusha Regional Police Commander Justine Masejo confirmed receiving reports about the case and defamation claims. He stated that investigations are underway, with officers deployed to Dar es Salaam to track down the suspects.

Digital lending companies have faced widespread criticism from citizens for legal violations, fraud, and online harassment. Parliament has previously urged the government to take action against these firms.

Recently, Finance Minister Mwigulu Nchemba and BOT Governor Emmanuel Tutuba condemned the actions of online lending institutions, with some being suspended. Despite these sanctions and directives from the Tanzania Communications Regulatory Authority (TCRA) to shut down their online platforms, these companies continue to operate.

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Wami-Ruvu Basin Board launches advanced water forecasting and resource management system

 

By Lilian Kasenene

 Morogoro--The Wami-Ruvu Basin Board has unveiled an advanced water forecasting system designed to monitor water levels in key water sources and provide timely updates to stakeholders.

The board's Director, Elibariki Mmasy, announced the development in Morogoro, emphasizing its role in enhancing water resource management and disaster preparedness.

Speaking to the press recently, Mr. Mmasy explained that the system integrates real-time data with weather forecasts to assess water flow and predict levels in rivers and reservoirs. 

This capability extends to identifying potential flood risks, offering critical insights to safeguard communities and resources.

“We have developed a system that measures water flow and forecasts levels across various water bodies. Updates will be issued every ten days to ensure we have a clear picture of the water situation,” said Mr. Mmasy. 

He noted that the board oversees key water sources, including the Ruvu River, which supplies water to Dar es Salaam, Dodoma, Pwani, and Morogoro regions, ensuring they have sufficient water for their needs.

The director also highlighted ongoing challenges, such as unauthorized farming, grazing, and sand mining near water sources. Despite continuous public education campaigns and collaboration with village leaders, these activities persist. 

He urged residents to respect the 60-meter buffer zone around water sources, a legal requirement aimed at protecting these vital areas.

“Our efforts to protect these zones are for the benefit and future of our nation. We ask everyone to comply and prioritize sustainability,” he added.

Paschal Joseph, a Ruvu sub-basin manager, shared progress in restoring degraded rivers. He revealed that the board had rehabilitated over 16 kilometers of rivers affected by human activities.

Joseph also encouraged communities and agricultural stakeholders to build rainwater harvesting ponds during the rainy season to address water scarcity during dry periods.

Morogoro Press Club chairman Nickson Mkilanya, called for continued collaboration between the board and journalists. 

He assured the board of the media's commitment to raising public awareness about the Wami-Ruvu Basin Board’s efforts and importance.

“Our doors are always open. Journalists have a responsibility to inform citizens about critical issues, and we stand ready to support this mission,” said Mkilanya.

This initiative marks a significant step in ensuring the sustainable use of Tanzania's water resources, benefiting both the environment and communities dependent on these essential systems.

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Airtel and Haier bring 5G smart TVs

By Charles Mkoka

Airtel Tanzania has teamed up with GSM Haier Tanzania to provide improved internet connectivity to Tanzanians through Haier Smart TVs. This exciting collaboration offers smart connectivity with Haier TVs (50-60 inches) for the Christmas and New Year seasons.

Airtel Tanzania's Director of Business, Mr. Joseph Muhere, shared that the partnership aims to make TVs smarter by connecting them to the country’s fastest 5G internet via a new router. Customers purchasing any Haier TV model will receive a free router and a one-month internet package, enabling seamless access to 5G speeds.

Video: Airtel and Haier bring 5G smart TVs

Haier Tanzania's Business Manager, Mr. Ibrahim Kiongozi, expressed his excitement about the partnership, highlighting that it supports Haier’s goal to simplify life for Tanzanians, making the holiday season even more special. He also praised Airtel for strengthening its commitment to connecting Tanzanians to the smart world.

The collaboration, which has grown rapidly since its launch, was showcased with a live demonstration of the Haier Smart TV and 5G router working in a home setup.

This special offer is available at select Haier shops in Dar es Salaam (Mlimani City, Samora, City Centre, Uhuru Street) and Mwanza (Rock City Mall). Airtel continues to lead in providing reliable internet, mobile communication, and financial services across the country.

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Bridging the digital divide: How Tanzania is fighting for affordable internet access for all

By Adonis Byemelwa

In Tanzania, as in much of sub-Saharan Africa, internet access remains a challenge holding progress for millions of people. While the world races ahead with technological advancements, many Tanzanians face barriers preventing them from fully participating in the digital economy. 

Internet services in the country are not only limited in scope but are also disproportionately expensive when compared to more developed nations. This disparity in access to affordable internet is not just an economic issue but a reflection of deeper societal inequalities, particularly gender inequality and social injustice.

The Tanzania Communications Regulatory Authority (TCRA) has highlighted that mobile internet costs in Tanzania are among the highest in the world. For the average Tanzanian, the cost of mobile data can be as high as 1.2% of their monthly income. 

In contrast, in countries like the United States and the United Kingdom, mobile internet often costs less than 0.5% of a person’s income. This stark contrast highlights the difficulties Tanzanians face when trying to access a basic service that has become essential to daily life in other parts of the world.

 For many Tanzanians, the cost of mobile data is simply unaffordable, limiting their ability to connect with the world and access essential services like education, healthcare, and financial services.

But why is internet access in Tanzania so expensive? One of the key factors is the lack of infrastructure. The cost of building and maintaining the infrastructure necessary for widespread internet access is incredibly high, especially in rural areas.

 Tanzania, like many other African nations, still lacks the vast network of broadband cables and data centers that have become commonplace in developed countries. While countries in North America and Europe can rely on decades of investment in high-speed networks, Tanzania is still playing catch-up. 

Building the necessary infrastructure to connect even remote areas requires massive investment, and that cost is passed on to the consumer, making internet access prohibitively expensive.

The high cost of mobile devices also adds another layer of difficulty. Most of the smartphones available in Tanzania are imported, meaning they are subject to high tariffs and taxes. As a result, even basic smartphones, which are essential for internet access, are out of reach for many Tanzanians.

 The average cost of a smartphone can account for a significant portion of a household’s monthly income, making it nearly impossible for many families to afford it. This high cost of technology is compounded by the fact that mobile internet is often unreliable, with slow speeds and limited coverage, particularly in rural areas.

This situation is further exacerbated by the social inequalities that exist in Tanzania. A report by the SOMIC 2023 indicates that while internet access is already limited, women in Tanzania and across sub-Saharan Africa face even greater barriers. According to the report, women in sub-Saharan Africa are 36% less likely than men to use the internet. 

In Tanzania, these barriers are even more pronounced, as women face multiple challenges, including low levels of digital literacy, a lack of affordable devices, and cultural restrictions that discourage women from engaging with technology. This gender gap in digital access mirrors broader social inequalities in Tanzania, where women are often excluded from educational and economic opportunities.

This digital gender divide is also seen in the wider social media landscape. A recent analysis by Kepios revealed that men consistently outnumber women on social media platforms, a trend that is particularly pronounced in certain regions.

 For example, on Facebook, the global audience is 57% male and 43% female, with 1.24 billion male users compared to 939 million female users.

 While platforms like Instagram and TikTok have a more balanced audience, men still outnumber women by 2.3% and 8.5%, respectively. 

In sub-Saharan Africa, this gender gap is even more evident, as women are less likely to use the internet and social media, limiting their ability to participate in the digital world.

The barriers to internet access in Tanzania are not just about affordability or infrastructure—they are also deeply rooted in social and cultural attitudes. Many families in Tanzania still view the internet as a male-dominated space, with women being discouraged from using mobile devices or accessing online platforms. 

This patriarchal mindset is not unique to Tanzania but is prevalent across many parts of Africa. A 2021 study by the Tanzania Gender Networking Programme found that 22% of women who do not own a mobile phone cited family disapproval as the primary reason, while 14% of women in Bangladesh cited similar restrictions.

 These cultural attitudes, coupled with a lack of digital skills and the high cost of internet access, create a situation where many women are excluded from the digital world.

This digital exclusion has far-reaching consequences for the development of Tanzania and other African nations. Without access to the internet, individuals are cut off from opportunities to improve their lives. 

Education becomes harder to access, healthcare information is out of reach, and economic opportunities are limited. In a world where the internet has become an essential tool for personal and professional growth, being disconnected means being left behind.

However, despite these challenges, there is hope for change. Experts like Israel Mbise, a data scientist from Arusha, and former Dar es Salaam Professor Sospeter Muhongo, a renowned geologist, believe that the situation is not beyond repair.

 According to Mbise, Tanzania can make significant strides toward improving internet access by addressing key barriers such as affordability, infrastructure development, and digital literacy. "We need to work on creating a more competitive mobile market," Mbise says. "Reducing taxes and increasing investment in infrastructure would go a long way in making the internet more affordable for everyone."

The government has already begun to take steps in the right direction. The TCRA has implemented policies to encourage the expansion of mobile networks in rural areas and is working to reduce the costs of mobile data. 

These efforts are aimed at making the Internet more affordable for Tanzanians, particularly in underserved areas. At the same time, initiatives to improve digital literacy, especially among women and girls, are critical to bridging the gender gap in internet access. By investing in education and training, Tanzania can empower its citizens to make better use of the digital tools at their disposal.

International organizations and businesses are also stepping up to support these efforts. In Kenya, Rwanda, and other parts of Africa, tech companies are partnering with governments to build more affordable and accessible digital infrastructure. 

These efforts are showing positive results, with mobile internet becoming more affordable and widespread in some areas. If Tanzania can follow this example, it may be able to reduce the cost of internet access and ensure that more people, especially women, can benefit from the digital revolution.

In the end, the story of internet access in Tanzania is one of both challenges and hope. While the road ahead may be long and difficult, there are signs that progress is being made. The government, along with experts like Mbise and Professor Muhingo, are working tirelessly to ensure that Tanzanians can connect to the world and take advantage of the opportunities the internet provides.

 If these efforts are successful, Tanzania could see a future where affordable internet access is no longer a luxury, but a basic right for all its citizens. With the right investments and policies, the digital divide can be closed, and Tanzania can become a fully connected, digital society.

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Harnessing the potential of DIT graduates through the innovation fund

By Alfred Zacharia

The Tanzanian government, through the Tanzania Commission for Science and Technology (COSTECH), is prioritizing innovation as a driver of economic and technological growth.

A recent call to graduates of the Dar es Salaam Institute of Technology (DIT) to utilize the TZS 2.3 billion Innovation Fund is a clear demonstration of this commitment. 

This fund aims to support innovators in transforming their ideas into market-ready solutions, aligning with the national agenda to promote economic empowerment and technological advancement.

Launched during the 9th Science, Technology, and Innovation Conference and Exhibition (STICE2024) by Deputy Prime Minister and Minister of Energy, Dr. Doto Biteko, the Innovation Fund provides critical resources for innovators and researchers. 

Its goal is to ensure their projects meet international competitiveness standards. 

Speaking during DIT's 18th graduation ceremony, COSTECH Director General Dr. Amos Nungu highlighted the potential of this initiative, stating, "These graduates have demonstrated remarkable creativity, and through the Innovation Fund, we believe they can drive transformative changes across various sectors, including technology, energy, industry, agriculture, and the environment."

The fund is part of a broader government strategy led by President Dr. Samia Suluhu Hassan to enhance individual and national economic growth through technological development. 

By focusing on graduates with market-ready innovations, it bridges the gap between academic achievement and practical application, ensuring that research contributes directly to the country’s development.

Graduates were encouraged to make full use of the fund to refine their innovations and contribute to Tanzania's technological and economic progress. 

Dr. Nungu urged them to embrace this opportunity, emphasizing the importance of creativity and innovation in transforming key sectors. He also called on them to uphold ethical practices, pursue lifelong learning, and leverage their skills to strengthen the national economy.

The Innovation Fund is a strategic investment in Tanzania’s future, aiming to turn the creativity of young graduates into solutions that address societal and economic challenges. By channeling resources to promising projects, the fund ensures that innovation becomes a cornerstone of national development. Its success will depend on the active engagement of graduates in transforming their ideas into impactful outcomes.

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