Digital economy vital to trillion-dollar vision

DAR ES SALAAM: TANZANIA must accelerate the growth of its digital economy to achieve its ambition of becoming a one-trillion-USdollar economy by 2050, with stakeholders urging faster reforms to expand e-commerce, strengthen digital infrastructure and equip businesses with digital skills.

The call was made during a two-day e-commerce forum organised by the Tanzania Private Sector Federation (TPSF), where government officials, technology experts and private sector leaders said digital trade has become central to improving productivity, expanding exports and attracting investment under the country’s Vision 2050 agenda.

ICT Commission Director General Dr Nkundwe Moses Mwasaga said Tanzania has already established a solid foundation through investments in digital infrastructure, payment systems and legal reforms, but broader adoption and innovation are now essential.

“The digital revolution is one of the engines that will drive Tanzania towards a onetrillion-dollar economy. E-commerce is no longer an option but a critical pillar of economic transformation,” he said.

He said Tanzania’s estimated three million micro, small and medium-sized enterprises (MSMEs) provide a strong base for expanding online commerce and increasing participation in the digital economy.

According to Dr Mwasaga, government investments in interoperable digital infrastructure, integrated with the Tanzania Instant Payment System (TIPS), together with legislation covering electronic transactions, personal data protection, fair competition and cybercrime, have created an enabling environment for digital business.

Global e-commerce revenue is projected to reach 5.31 trillion US dollars in 2026, according to the Global E-Commerce Compass 2026 report published by E-Commerce DataBase (ECDB), highlighting the scale of opportunities available for emerging economies.

Tanzania National Business Council (TNBC) Executive Secretary, Dr Godwill Wanga said expanding e-commerce offers one of the quickest routes to increasing exports and mobilising investment needed to realise Vision 2050.

However, he said crossborder tax administration, high payment costs, delivery delays and weak integration between global e-commerce platforms and domestic tax systems continue to constrain growth.

Participants also called for major international e-commerce firms to establish local distribution centres in Tanzania to shorten delivery times and improve logistics.

Africa Research Institute for Artificial Intelligence (ARIFA) Executive Director Dennis Mwighusa said limited digital skills remain a major obstacle despite growing access to technology.

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He urged greater investment in digital literacy and capacity building, while stakeholders also recommended developing a dedicated national e-commerce policy to better integrate digital trade into Tanzania’s long-term economic strategy.