Tech investment seen driving growth
DAR ES SALAAM: THE government needs to increase investment in digital infrastructure, technology education and youth empowerment to unlock the country’s potential as a technology investment hub.
The country has a growing pool of talented young people, but needs a stronger technology ecosystem to turn their ideas into globally competitive businesses, Nala founder and CEO, Mr Benjamin Fernandes said in an interview with the ‘Daily News’ on the sidelines of the Africa50 General Shareholders Meeting in Dar es Salaam.
“Help us transform the technology ecosystem by investing in infrastructure, education and youth empowerment,” he said.
“If we do that, we will create more technology companies that will attract greater investment and drive private-sector growth.”
Mr Fernandes said technology and artificial intelligence are increasingly central to business, making technology education essential in schools to prepare young people for the modern labour market.
“Technology has become part of every business,” he said, citing applications ranging from music production and trading to entrepreneurship. Tanzania should aim to become one of Africa’s leading technology hubs, he said.
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He said the country’s success in music and creative industries demonstrates its potential to develop other innovation-driven sectors if young entrepreneurs receive greater support.
Nala processes more than 10 billion US dollars in transactions annually across 16 countries, including Kenya, Rwanda, Ghana, Nigeria, South Africa, Egypt, the UK and US, Mr Fernandes said.
About 60 per cent of the company’s revenue comes from the US market. He said Nala is also helping tourism sector by enabling international visitors to make faster, cheaper digital payments to local businesses.
The company recently received approval from the Bank of Tanzania (BoT) to facilitate outward money transfers and is preparing services to enable businesses trading with Kenya, Uganda, Comoros and Burundi to send and receive payments faster.
“Our goal is to ensure that when a trader sells goods in neighbouring countries, they receive payment within five minutes instead of waiting several days,” Mr Fernandes said.
