How the communication sector drives economic growth

DAR ES SALAAM residents briefed on the Communication Frequency checker owned by Tanzania Communications Regulatory Authority (TCRA) displayed at their pavilion during the Dar es Salaam International Trade Fair (DITF)at the Mwalimu J. K. Nyerere, Trade Fair Ground along Kilwa Road. (File Photo)

DAR ES SALAAM: TANZANIA’S communication sector has improved significantly during the last six decades, with the construction and expansion of the National Information Communication Technology Broadband Backbone (NICTBB) infrastructure being the most notable.

As the country marks 63rd anniversary of independence, it is obvious that NICTBB has aided service providers in delivering communication services to the public more quickly, reliably and cost-effectively, thus accelerating the national development by allowing citizens to use ICT.

The government says NICTBB facilitates the rapid transfer of high-quality data and information, contributing to the development of the telecommunications sector and thus to the nation’s economic growth.

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The benefits of NICTBB, according to the government, include a reduction in mobile phone interconnection fees and decrease of end-user costs.

The sector’s growth is reflected in the increased use of mobile phones, the internet, financial transactions and the proliferation of various online service delivery systems.

The government data shows that on December 9, 1961, the then Tanganyika had 16,238 landline phones in use across the country, most of which belonged to government institutions and departments.

There were 53,111,246 mobile phone lines and 71,405 landline phones in June 2021. Internet users surpassed 29,152,713 for the first time since the country’s independence.

According to the Tanzania Communications Regulatory Authority (TCRA) communications statistics, quarter ending September 2024, a count of all active SIM cards and fixed lines that have registered activity or have been used at least once in the past three months describes telecom subscriptions.

There are two types of SIM card subscriptions: those subscribed for human communication (Person to Person – P2P) and those for machine communication (Machine to Machine – M2M).

The total number of subscriptions (SIM cards and fixed lines – P2P and M2M) increased from 76.6 million during the previous quarter (quarter ending June 2024) to 80.7 million subscriptions as of September 2024.

Moreover, as of January 2024, there were 67.72 million mobile connections in Tanzania, which is 99 per cent of the country’s population. This is a significant increase from the previous year, when there were 57.42 million mobile connections.

On internet services, statistics presented in the report shows that internet subscriptions and usage is also on the increase. Subscriptions are presented based on the number of lines subscribing internet services and usage is in terms of data traffic.

On internet subscription, the recent TCRA report shows that the number of internet subscribers in Tanzania has surged by five per cent between June and September 2024.

This significant growth reflects the nation’s increasing digital adoption and underscores the potential for economic development and social transformation.

“Internet subscriber numbers have increased from 39.3 million to 41.4 million, indicating a rising demand for connectivity in the digital age,” the report reads in part.

The report indicates that mobile broadband remains the most popular means of accessing the internet, with subscriptions reaching approximately 22.9 million.

This is complemented by 18.3 million subscriptions utilising 2G technology, while fibre technologies, such as Fibre to the Home (FTTH) and Fibre to the Office (FTTO), account for a smaller share with 59,656 and 9,028 subscriptions, respectively.

As of September 2024, mobile wireless subscriptions dominate the market, comprising an impressive 99.7 per cent of all internet subscriptions. The trend underlines the increasing reliance on mobile devices for internet access, driven by the expansion of mobile network infrastructure and competitive pricing among service providers.

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The report also details the monthly internet usage per subscriber, which has seen an upward trend, with users consuming an average of 4,855 MB in September, up from 4,647 MB in July.

This increase in data consumption reflects the growing reliance on internet services for various applications, including social media, streaming and online transactions.

Money transactions are also on the increasing value, thanks to a rise in access and use of digital platforms by mobile telecommunication companies that are helping to boost financial inclusion.

With such success in mind, the government is determined to ensure that all wards in Tanzania will be connected to the NICTBB by 2026.

This is part of the country’s strategy to ensure 80 per cent internet penetration in the country by 2025.

The Ministry of Information, Communication and Technology outlined an ambitious agenda for the 2024/25 fiscal year, focusing on driving Tanzania’s transition into a digital economy.

For the 2024/25 fiscal year, the Ministry planned to generate 100.7bn/-. The revenue, according to the Ministry, would come from various sources, including services provided by the National Communications Backbone, media registrations and related activities.

The Ministry has successfully contributed to the country’s economy in many ways, including: Expanding digital infrastructure, the MICIT has been expanding digital infrastructure, such as the National ICT Broadband Backbone (NICTBB), to improve internet accessibility and establish quality mobile telecom networks.

Moreover, promoting competition, the MICIT has introduced a convergence licensing framework to promote competition and economic efficiency in the sector. This has led to new players and services entering the market, such as voice-over-internet protocol (VoIP) telephony and 3G and LTE mobile services.

Furthermore, bridging the digital divide, the Ministry has worked with the Universal Communications Service Access Fund (UCSAF) to provide subsidies to service providers to roll out services in underserved areas.

Also, through supporting the tech startup ecosystem with incubators and accelerators to drive economic development and job creation.

The communication sector also contributes approximately 1.5 per cent to Tanzania’s national GDP, which is a big boost to the country’s development.

Minister for Information, Communication and Information Technology, Jerry Silaa said recently that the government’s commitment to ICT development is evident in various strategies, including the Third National Five-Year Development Plan (FYDP III), the National Cybersecurity Strategy 2026 and the Financial Sector Development Master Plan.

He said the initiatives aim to build a knowledge-based society and create a conducive environment for ICT growth.

Minister Silaa said that Tanzania’s strides in digital transformation earned global recognition, ranking the country among 46 role model nations in cybersecurity maturity, according to the Global Cybersecurity Index 2024, released by the International Telecommunication Union (ITU) in September 2024.

The report highlights Tanzania’s leadership in East and Southern Africa, underscoring its efforts to secure digital infrastructure and ensure safe access to the digital economy for its citizens.

The Tanzanian government, alongside other African nations, is committed to making digital transformation a reality for all. This workshop provides a critical opportunity to chart the way forward, ensuring Africa can fully leverage digital technology to drive inclusive and sustainable growth.

On the general contribution of the communication sector to the country’s economic growth, the communication sector has contributed to economic growth in a number of ways, including:

Improved service delivery, which has led to better service delivery, increased income and improved living standards.

Also, the communication sector has been a key driver of Tanzania’s socio-economic development and has benefited almost every sector of the economy.

Moreover, the government has implemented initiatives to drive digital economic transformation, including the National Digital Economy Strategy 2024-2034.

On digital skills, TCRA has implemented programmes to cultivate digital skills, including the establishment of digital clubs in schools and universities.