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Friday 21 February 2020

THE TELECOM SECTOR’S CONTRIBUTION TO THE ECONOMY SHOULD NOT BE UNDERESTIMATED

In Tanzania, digitalisation has become one of the key trends which is seen to be bringing great promise for the country’s growth and development.

Last week, the World Customs Organization (WCO) highlighted that Tanzania could benefit hugely from investing in new digital technologies. Speaking at a meeting in Dar es Salaam, the WCO Secretary General noted that investing in digital technology represented one of the best ways for increasing tax collections and government revenue, which in turn can be reinvested into world class infrastructure.

The WCO Secretary General’s comments highlight yet another benefit that Tanzania is set to reap through investment in digital technology.

To date, digital technology has already brought about tangible benefits for many Tanzanians.

In recent years, Tanzania’s telecom sector has worked hard to invest in different digital emerging trends, which have their own impact on the national economy.

For example, mobile money services are helping to boost financial inclusion by providing previously unbanked individuals with a means of saving money, paying bills and gaining access to the mainstream economy.

Meanwhile, mobile internet and broadband services are having a positive impact on the productivity of businesses by allowing employees to communicate more efficiently and consistently.

Similarly, investing in telecommunications infrastructure has helped ensure reliable internet connectivity, which has improved access to information and services, boosting productivity as a result.

Collectively, these services are helping to improve the lives of countless businesses and individuals.

As Tanzanian’s digital landscape has grown, the sector’s ecosystem has continued to expand in size and adapt accordingly, indirectly employing over 1.5 million people in a range of jobs from IT technicians, distributors and mobile money agents. These jobs are providing many with an opportunity to gain stable employment and contribute to the national economy.

The telecom sector’s contribution to Tanzania’s economy should not be underestimated.

It is, therefore, essential that we continue to support the sector. This will also help ensure it remains a lucrative source of government revenue.

A favourable regulatory environment – alongside incentives for the industry to continue its investment programme – are two clear ways of helping the industry thrive.

It is important that we act now to ensure that this sector continues to bring value to us all.

Mabula Makani
University of Dar es Salaam Business School
20.02.20

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