CONTINUED SUPPORT FOR THE TELECOMS SECTOR IS KEY TO TANZANIA’S ECONOMIC GROWTH

It is well known that Tanzania has witnessed a period of sustained economic growth in the past decade, helping it become one of East Africa’s most prosperous economies. Recent research confirms this, with data indicating that the country’s economy has become one of the fastest growing in Africa.

According to a report by a UK thinktank, Tanzania’s success has been driven by government efforts to industrialise the economy and encourage investments in a range of sectors. As a result, Tanzania has emerged as a major exporter of gold as well as one of Africa’s top tourism destinations. Meanwhile, the Tanzanian government has worked hard to invest in key infrastructure projects including the Standard Gauge Railway system, upgrades to its ports and connecting rural economies across the country to the electrical grid.

The report also highlights that Tanzania’s recent prosperity has been boosted by technological innovations as well as greater connectivity among its population. These developments have been made possible by years of steady investment by Tanzania’s telecom sector which has now invested more than TZS6 trillion in the country.

This investment has gone far in helping to develop Tanzania’s digital landscape, such as the rollout of 4G as well as mobile internet. Similarly, Tanzania’s telecom sector has been central in developing innovative solutions for accessing money and bank accounts. Today, mobile money applications are used by over 25 million Tanzanians and have gone far in boosting the country’s financial inclusion.

Meanwhile, mobile operators have also helped connect countless small to medium sized businesses (SMEs) to the internet, helping to reduce unnecessary costs and boost the profitability of businesses. For example, access to the internet allows businesses to market their products outside their local community and reach many more potential clients.

While Tanzania’s telecom sector has worked hard to help drive innovation and economic development, more needs to be done to support the sector in years to come. Increasing investment in the sector and developing a favorable regulatory environment are two ways of achieving a stable, reliable and predictable market.

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

Lusako Mwasandende
UDBS UDSM
06.03.2020