Digital entrepreneurship to drive Vision 2050

DAR ES SALAAM: DIGITAL entrepreneurship is rapidly transforming the economic landscape by enabling technology-driven businesses to thrive, boosting productivity and supporting inclusive growth across diverse sectors.

An economist and banker, Dr Hilberbrand Shayo, emphasised the critical role digital businesses play in Tanzania’s pursuit of its ambitious 2050 goal to build a 1 trillion US dollars economy and raise average incomes to 7,000 US dollars per capita.

“Digital entrepreneurship is driving inclusive growth, fostering economic diversification and creating new jobs across multiple sectors,” Dr Shayo said.

He said by bridging gaps in traditional industries and boosting productivity, these technology-driven enterprises are key to integrating more citizens into the formal economy.

He said as Tanzania advances its digital agenda, leveraging such innovation will be vital for sustainable development and improved living standards nationwide.

Digital platforms such as Instagram, WhatsApp Business, Jumi and Kupatana are lowering traditional barriers for entrepreneurs.

Many Tanzanians can now start businesses without the need for costly physical stores or complicated banking systems. Thanks to mobile money services like M-Pesa and Tigo Pesa, transactions have become faster and more accessible across the country.

This shift has expanded market reach beyond local boundaries, enabling entrepreneurs to tap into national and regional customer bases with minimal marketing costs.

Dr Shayo said digital tools that monitor inventory, sales and customer preferences help businesses operate more efficiently and competitively.

He noted that digital business is acting as a powerful equaliser, connecting smallscale producers with larger markets and creating a level playing field.

Continued investment in digital infrastructure and skills development will be crucial to unlocking this potential and ensuring that Tanzania’s digital economy benefits all citizens.

Furthermore, Dr Shayo said the labour market is also evolving alongside this digital boom.

According to the World Bank, the digital economy supported over 200,000 jobs by 2022, spanning e-commerce, fintech, digital marketing and logistics.

Particularly notable is the rise of informal online businesses run by young people and women, who use social media to sell products ranging from clothing to food.

For example, many “mama lishe” vendors now operate via WhatsApp, providing convenient meal deliveries without expensive restaurant setups,” said Dr Shayo adding however, this digital transformation brings challenges.

Traditional roles in retail, banking and media are being reshaped or displaced by automation and direct-toconsumer platforms.

Local market vendors and bank clerks face new competition as the landscape evolves.

As Tanzania marches towards Vision 2050, digital businesses are not just engines of economic growth but also powerful agents of social change and job creation. With the right investments and policy support, the country’s digital economy promises a future where opportunity is accessible to all.