Tanzania is undergoing a digital transformation, reflected by the growing number of people connected to communications and internet services. This is having a profound impact on the country’s social, cultural, and economic frameworks, through enhanced access to key services and improved productivity and efficiency across economic sectors.
Mobile technology is at the center of Tanzania’s digital transformation. Mobile services today connect more people in the country than any other communications technology, with around 42% of the population subscribing to a mobile service in 2018. Mobile internet penetration has nearly quadrupled since 2010 to 18.5%, with more than 8 million new mobile internet subscribers added over that period.
The mobile industry is contributing significantly to the realization of Tanzania’s development goals through various activities and initiatives by mobile operators and other ecosystem players. This report highlights four important contributions the mobile industry is making to the development goals:
- Access to key services – Mobile operators provide affordable access to life-enhancing services for people in underserved communities. Inclusive and innovative business models have emerged from the convergence of various mobile services, particularly connectivity, mobile financial services, digital identity, and M2M and IoT
- Productivity and efficiency – Mobile is driving productivity and efficiency gains in businesses and public institutions, especially in the agricultural sector where the technology is helping to address the knowledge and information gap for farmers and enabling efficient interactions and transactions between key players in the value chain.
- Contribution to economic growth and social development – In 2016 the total value added generated by the mobile operators alone (taking into account direct, indirect, and productivity effects) was around $2.5 billion, equivalent to 5.2% of GDP. The mobile industry also employs more than 1.5 million people, directly and indirectly, equivalent to 2.6% of the population. • Good governance – Mobile is a key channel for Tanzania’s e-government strategy, with public institutions now using mobile money, SMS, and USSD platforms to deliver services, collect payments and engage with the general public
Leveraging mobile technology to realise the development goals in Tanzania requires collaboration by all stakeholders, including the government, development organisations, private sector players and the mobile industry. There is an opportunity for further collaboration among these stakeholders to extend mobile services to unconnected populations; empower women and reduce all forms of inequality; support the emerging tech start-up ecosystem; and deliver the government’s Electronic Revenue Collection System and a centralised identification database. The extent and outcome of collaboration on improving access to and adoption of mobile-based digital services rely on the ability of government to create an enabling environment and the right incentives for partnerships.
Mobile enabling digital transformation in Tanzania
Digital technology can help address a range of socio-economic challenges in any society. This is particularly true in developing countries where large swathes of the population lack access to essential services, mainly due to insufficient resources and weak infrastructure. In many countries, digital technologies and the internet in particular now serve as a platform for improving healthcare, education, commerce, information sharing, employment, and innovation. In turn, this generates measurable economic, social and cultural value, from improving productivity and efficiency in key sectors of the economy to enabling access to life-enhancing services for individuals and communities.
