Arusha electronics firm to boost local tech industry

ARUSHA: THE Tanzania Information and Communication Technology Commission (ICTC) has stated that Arusha-based TanzTech Electronics’ assembly of smartphones and electronics is a key step in boosting the local tech industry.

This initiative aims to strengthen Tanzania’s digital economy while providing affordable, locally made tech solutions.

Recent statistics reveal that TanzTech Electronics that initiated production in 2023 has a monthly assembly capacity of 40,000 smartphones, 30,000 tablets, 15,000 laptops and 10,000 projectors.

The Director General of the ICTC, Dr Nkundwe Mwasaga commended the company for heeding to the government’s call to invest in the local assembly of ICT equipment.

This includes a wide range of devices such as smartphones, tablets, laptops, projectors, solar panels, and other essential technologies, contributing to the country’s growing tech infrastructure.

Dr Mwasaga highlighted that one of the key tasks entrusted to them by President Samia Suluhu Hassan is to identify and attract IT industries to invest in Tanzania, with the goal of fostering the growth of the country’s digital economy.

He emphasised that President Samia consistently advocates for Tanzania to prioritise the growth of its digital economy, support startup companies and encourage the establishment of firms that manufacture IT equipment.

“For individuals to actively engage in the digital economy, they must have access to IT equipment. In Tanzania, the most commonly used devices are smartphones, tablets, and laptops,” he noted.

Some of the equipment incorporates solar panels, harnessing clean energy to deliver IT solutions to areas not covered by the National Grid.

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“As the Commission, our role is to promote IT, and we are committed to supporting industries like TanzTech to grow, especially given the high demand for IT equipment in the country,” he explained.

Dr Mwasaga revealed that, according to the Tanzania Communications Regulatory Authority (TCRA) statistics for the last quarter, 23 million people in the country own and use smartphones, indicating a large market for IT equipment.

He emphasised that the ICT Commission would work closely with TanzTech to ensure that the investor receives the requested incentives, including exemption from value-added tax (VAT), allowing them to sell products at more affordable prices.

TanzTech’s Managing Director, Mr Gurveer Hans, explained that the company assembles various IT products, including smartphones, tablets, laptops, projectors and solar panels.

He noted that VAT is a challenge, as products are taxed twice—once when sold to mobile network operators and again when sold to customers, which drives up prices.

“With VAT exemption, we could sell our smartphones for as low as 150,000/-,” he stated.

In collaboration with Tamisemi, Mr Hans also revealed that they plan to distribute 500 laptops to primary and secondary schools starting this month, with plans to re-enter the market once VAT exemption is granted.

Mr Hans praised President Samia for creating a conducive investment environment, which encouraged the establishment of the factory in 2023.

The Senior Digital Innovation Advisor at ICTC, Dr George Mulamula, shared that Tanzania’s goal is to build an inclusive digital economy that benefits both urban and rural citizens.

He stressed the importance of integrating Swahili into locally manufactured IT devices to enhance accessibility for Tanzanians and support various digital economy activities.