Smartphone use fuels digital economy growth

DAR ES SALAAM: EXPANDING smartphone base is opening a larger market for digital businesses as rising device ownership and internet use accelerate demand for online services, fintech and digital commerce.

The number of smartphones in use rose 5.16 per cent to 31.34 million in the quarter ended June, from 29.8 million in the previous quarter, according to the latest Tanzania Communications Regulatory Authority’s sector performance report.

Smartphone penetration increased to 44.74 per cent from 42.50 per cent, indicating that almost half of the population now has access to a smartphone.

The growth is significant for businesses seeking to expand digital services, as smartphones provide consumers with access to mobile payments, banking, e-commerce, entertainment and other online platforms.

Feature phones, however, remain dominant, with about 58.4 million devices in use and penetration of 83.38 per cent, slightly down from 83.60 per cent in March.

Information, Information and Communication Technology Minister Angellah Kairuki said the government was promoting access to affordable smartphones and other digital devices to broaden participation in the digital economy.

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

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Internet users increased 6.48 per cent to 62.79 million in June from 58.97 million in March, while internet penetration reached 89.7 per cent. Internet usage rose 11.65 per cent during the period.

Mobile internet remained the dominant access channel, accounting for 37.6 million lines, the report said.

Data consumption also climbed 11.6 per cent to 1,041 petabytes in June from 932 petabytes three months earlier, highlighting growing demand for digital content and services.

The report links the trends to Tanzania’s efforts to implement its Development Vision 2050 and Digital Economy Framework 2024-2034.

For technology companies, the expanding digital user base presents opportunities to develop products and services tailored to increasingly connected consumers.