RELIABLE TELECOM SERVICES WILL NARROW THE GAP BETWEEN URBAN AND RURAL AREAS

Since 2016, the Tanzanian Government has embarked upon an ambitious programme to help transform the country into a middle-income economy by 2025.

One of the key goals of the Development Vision is to create a competitive and sustainable economy with shared benefits.

While working towards making a strong and dynamic economy is – of course – important, it is equally important that every effort is made to ensure that the benefits of the country’s development are shared by all Tanzanians.

To that end, the Tanzanian development organisation, World Vision Tanzania, has developed an initiative designed to narrow the development gap between urban and rural dwellers in the country.

According to World Vision Tanzania, development can be improved in the country’s rural towns and villages by promoting small scale saving groups which comprise of around 30 people. These saving groups allow people to save money, which can then be invested later or used to pay back loans.

Meanwhile, the Government has also worked hard to ensure that Tanzania’s rural communities are connected to the country’s electric power network. By 2022, the Government aims to connect over 7,800 villages to the country’s electricity infrastructure.

In recent years, however, telecom companies have played an increasingly important role in bridging the economic gap between urban and rural areas. Today, it is clear that reliable and accessible telecoms services – most notably mobile internet services – are key infrastructure requirements in helping to narrow the gap between urban and rural areas.

In rural areas, mobile internet has many positive effects on the agricultural sector. For example, farmers have become increasingly reliant on using their mobile phones to check whether conditions, analyse soil, and market their products.

In addition, improvements to accessing mobile internet is also helping to facilitate economic opportunities in remote areas. For example, mobile banking is providing previously unbanked people with a means of obtaining loans and savings which in turn helps boost financial inclusion.

Meanwhile, the introduction of digital health, in particular mobile-health services is helping to improve access to and use of health services, especially for those living in rural and remote areas.

Tanzania’s telecoms companies have certainly made remarkable achievements with regard to improving the development gap. However, barriers to the adoption of mobile internet could cause the pace of recent improvements to slow.

By investing in the next generation of infrastructure, telecom companies can continue to improve mobile internet penetration and ensure more Tanzanians benefit from mobile services.

But in order to invest in the next generation of infrastructure, telecom companies must be convinced that they are investing in a stable, reliable and predictable market. This requires the right balance of regulation and investment incentives.

Let us continue to support this sector and help ensure that the benefits are shared by all.

Christina Kabudi
University of Dar es Salaam Business School (UDBS)
08.02.2020