Tz must turn connectivity into economic opportunity

TANZANIA: TANZANIA’s rapid expansion in smartphone and internet use is creating a new economic opportunity, but also a challenge, turning wider connectivity into higher productivity, new businesses, jobs and access to markets.

For a rice or maize farmer in Mbeya, greater internet access can mean finding buyers beyond the local market, checking prices and accessing information on weather, seeds and farming techniques.

For a young entrepreneur, social media can provide a low-cost way to reach customers and expand sales. The scale of Tanzania’s digital expansion is becoming clearer.

According to the Tanzania Communications Regulatory Authority (TCRA), smartphone users increased 5.16 per cent in the quarter ended June 2026 to more than 31.34 million, from 29.8 million in March. Smartphone penetration rose to 44.74 per cent from 42.50 per cent.

Internet users also increased 6.48 per cent to 62.79 million from 58.97 million, while internet usage rose 11.65 per cent. Internet penetration reached 89.7 per cent during the quarter.

The figures underline Tanzania’s growing digital footprint, but economists and technology experts say the bigger question is whether the country can turn connectivity into economic value.

Tanzania is moving from an economy that uses technology to one that can create value through it, according to economist and lecturer Gilbert Mwabeza.

“We have not yet reached a sufficient level where large numbers of people are using these networks to turn them into platforms for generating income and competing internationally,” said Mr Mwabeza, who lectures at Marian University College in Bagamoyo and is a PhD student at the University of Dar es Salaam.

He said Tanzania already has a policy and infrastructure foundation, but implementation and investment need to move faster than the growth in users.

The country’s Digital Economy Strategic Framework 2024- 2034 and Development Vision 2050 both identify digital transformation as an important driver of long-term development.

Mr Mwabeza said almost every sector could benefit from greater use of technology, including agriculture, finance, manufacturing, tourism, education, healthcare, transport, business and e-commerce.

Agriculture, in particular, offers significant potential because of its importance to the livelihoods of millions of Tanzanians.

“Internet connectivity can enable farmers to access information on crop prices, weather conditions, professional advice, new seed varieties and agricultural inputs. It can also enable them to find buyers directly online and sell their produce,” he said.

The Digital Economy Strategic Framework also highlights technologies such as mobile applications, weather forecasting, artificial intelligence, drones and the Internet of Things as tools that can improve agricultural productivity.

But the expansion of networks alone will not guarantee economic gains. Mr Mwabeza said digital infrastructure needs to be affordable, fast, reliable, secure and accessible, particularly in rural areas where many communities still face limited access to technology.

He also called for greater integration of government systems so information can be shared efficiently and citizens do not have to repeatedly provide the same details to different institutions.

The government plans to expand its network to schools, hospitals, courts and 1,000 agricultural extension centres, he said adding we therefore need to move from coverage to quality, affordability and productive use.

Skills are another major gap. As smartphone ownership rises, Tanzania will need more professionals capable of developing and using digital technologies.

Mr Mwabeza called for greater investment in skills including coding, data analytics, artificial intelligence, cybersecurity, digital marketing, e-commerce, financial technology and freelancing.

“Without this, millions may own smartphones but lack the skills to create value,” he said. Launching the TCRA report, Communication and Information Technology Minister Angellah Kairuki said the government is promoting affordable smartphones and other digital devices to widen participation in the digital economy.

“Affordable access to devices will enable businesses and service providers to participate in the digital economy,” Ms Kairuki said.

Communications expert Jameson Kasati said the latest TCRA figures showed encouraging progress in telecommunications, internet use, mobile money, smartphones and advanced mobile networks.

But he said the next phase should focus on translating those gains into improvements in people’s lives.

“A farmer should use connectivity to obtain market information. A student in a rural village should access quality-learning materials. A small business should reach customers beyond its neighbourhoods. A patient should benefit from digital health services,” said Mr Kasati, Executive Director of Amtec Consulting Limited.

He said communications infrastructure would remain an important foundation for Tanzania’s Development Vision 2050 and its digital economy strategy.

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Tanzania Telecommunications Company Limited (TTCL) is also expanding its network. Public relations manager Ester Mbanguka said the corporation is implementing the second phase of a programme to expand coverage across the country, with completion expected during the current financial year.

Tanzania Posts Corporation(TPC) has also welcomed the expansion of communications services. Marketing and Sales Director Frednand Kabyemela said the growth provides an opportunity for the government, service providers and other stakeholders to assess how they can improve digital services for citizens.

For small businesses, however, affordability remains a concern. Idda Mushi, a Dar es Salaam food entrepreneur who uses TikTok and Instagram to promote her business, said having more people online could help entrepreneurs reach new customers and increase sales.

However, she urged the government to consider the cost and validity of mobile data bundles. “You can buy a weekly bundle and use it up within a day,” she said.

The issue highlights a broader challenge facing Tanzania’s digital transformation. Increasing access is only the first step. For connectivity to generate stronger economic returns, businesses, farmers, students and households need affordable services, appropriate devices, digital skills and platforms that allow them to participate productively.