Tech sector is engine of future growth

TANZANIA: TANZANIA wants to become one of Africa’s leading digital economies and it is putting technology at the heart of its journey to Dira 2050.

Backed by massive investments in broadband infrastructure, cybersecurity, innovation and digital skills, the government is positioning the technology sector as a key engine of economic growth, industrialisation and job creation in the decades ahead.

Presenting the Ministry of Communication and Information Technology’s 2026/27 budget estimates in the National Assembly, the docket Minister Angellah Kairuki said the country’s digital transformation agenda is central to achieving Dira 2050’s ambition of building a prosperous, knowledge-based and globally competitive economy.

The message marks a significant shift in the way Tanzania views technology. For many years, information and communication technology was largely seen as a support service for business, government and communication. Today, it is increasingly viewed as a strategic economic sector capable of driving productivity, attracting investment, creating jobs and improving public service delivery.

That thinking is reflected in the Tanzania Development Vision 2050 (Dira 2050), which identifies Digital Transformation as one of the five key drivers expected to accelerate national development over the next quarter century.

The vision sets ambitious targets. By 2050, Tanzania aims to become an industrialised, knowledge-based upper-middle-income economy with a Gross Domestic Product (GDP) of one trillion US dollars and a per capita income of 7,000 US dollars.

Achieving those goals will require much more than traditional investments in roads, railways and energy. It will also depend on how effectively the country embraces digital technologies and innovation.

Recent performance indicators suggest that Tanzania’s digital economy is already gaining momentum.

According to the ministry’s budget estimates, information and communications activities grew by 14.3 per cent in 2024, nearly double the 7.6 per cent recorded in 2023. The sector’s contribution to GDP also rose from 1.5 per cent to 1.6 per cent during the same period.

While those figures may appear modest compared to sectors such as agriculture, mining or manufacturing, they point to a rapidly expanding segment of the economy whose influence extends far beyond its direct contribution to GDP.

Growth has been driven by increased use of mobile phones, social media platforms, digital financial services, virtual meetings and online business transactions. The digital revolution is steadily changing the way Tanzanians communicate, learn, trade, access services and conduct business.

Mobile connectivity alone tells an impressive story. Registered mobile phone subscriptions increased from 90.4 million to 111.9 million by March 2026, reflecting growing demand for digital services and expanding access to financial inclusion through mobile money platforms.

The growing penetration of mobile technology has created opportunities for innovation across multiple sectors, including agriculture, healthcare, education, tourism, transport and financial services.

As smartphone ownership continues to rise, Tanzania is increasingly positioning itself to benefit from emerging digital opportunities that are transforming economies across Africa and beyond.

Building the digital foundation

At the centre of Tanzania’s digital ambitions lies one critical requirement: Infrastructure. Just as roads, railways and ports are essential for moving goods and people, digital infrastructure is essential for moving information, data and digital services.

Over the past few years, the government has invested heavily in expanding telecommunications infrastructure, particularly in underserved rural areas.

During the current administration, 758 telecommunications towers have been constructed in 688 wards nationwide, while 304 existing towers have been upgraded from basic 2G services to 3G and 4G connectivity.

These projects have improved communications access for approximately 8.5 million people, while upgraded facilities have enhanced services for another 4.2 million citizens.

The impact extends far beyond mobile phone usage. Improved connectivity allows farmers to access market information, enables students to participate in online learning, supports remote healthcare consultations and facilitates access to financial services in areas previously excluded from the digital economy.

At the same time, implementation of the Rural Telecommunications Project continues to narrow the digital divide between urban and rural communities.

Under the programme, 636 telecommunications towers are being constructed across 443 wards. By March 2026, 456 towers had already been completed, representing 72 per cent of the overall target.

Once fully operational, the project is expected to bring communications services to approximately 2.5 million additional Tanzanians.

Such investments are crucial because digital inclusion has become increasingly important for economic participation and social development.

Without reliable internet access and communications infrastructure, large segments of the population risk being left behind in a world that is becoming increasingly digital.

Fibre backbone creating regional opportunities

Beyond domestic connectivity, Tanzania is also strengthening its position as a regional digital hub. The National ICT Broadband Backbone has emerged as one of the country’s most strategic infrastructure projects.

The government has already completed fibre optic backbone construction in 86 districts and connected seven neighbouring countries to the network.

Plans are also under way to extend connectivity to the Democratic Republic of Congo (DRC). The significance of this project goes beyond telecommunications. As regional economies become increasingly interconnected, data traffic is becoming as important as the movement of goods through ports, roads and railways.

The ability to transport data quickly, securely and affordably has become a major determinant of competitiveness in the modern economy. By expanding regional fibre connectivity, Tanzania is positioning itself to play a larger role in East and Central Africa’s digital ecosystem while generating new opportunities in data services, digital trade and technology investment.

This aligns closely with Dira 2050’s broader ambition of transforming Tanzania into a leading regional logistics and connectivity hub. Digital government transforming service delivery One of the most visible impacts of technology is occurring within government itself.

The Digital Tanzania Project continues to modernise public administration by expanding online services and improving digital governance systems. The objective is simple: Make government services faster, more transparent, more accessible and more efficient.

Across the world, digital government platforms have proven effective in reducing bureaucracy, lowering administrative costs and improving accountability. For Tanzania, the benefits could be substantial. Citizens increasingly expect to access services online, whether applying for permits, obtaining official documents, paying fees or accessing public information.

Dira 2050 recognises this reality and sets a target of ensuring that more than 80 per cent of government services are accessible through secure and user-friendly digital platforms by 2050. Achieving this goal would not only improve public service delivery but also strengthen transparency, accountability and citizen engagement.

It would also help reduce transaction costs for businesses, making Tanzania a more attractive destination for investment. Digital skills becoming the new currency Infrastructure alone, however, will not guarantee success. The true value of digital transformation lies in people.

Dira 2050 acknowledges that future competitiveness will depend largely on the country’s ability to develop a digitally skilled workforce capable of adapting to rapidly evolving technologies. The rise of artificial intelligence, automation, robotics, data analytics and advanced computing is reshaping labour markets across the world.

Jobs that did not exist a decade ago are becoming increasingly important, while traditional occupations are being transformed by technology. Recognising this challenge, the government is investing in digital skills development and specialised ICT training.

Plans to establish the National Digital Technology Institute represent an important step towards building local expertise in emerging technologies. The institution is expected to help produce the highly skilled workforce needed to support Tanzania’s digital ambitions.

Dira 2050 further sets a target of ensuring that at least 70 per cent of Tanzanians possess digital literacy skills by 2050. Achieving that objective will require sustained investment in education, training and lifelong learning programmes.

It will also require closer collaboration between educational institutions, government and the private sector to ensure skills development remains aligned with evolving labour market needs. Innovation and entrepreneurship Another important pillar of Tanzania’s digital strategy is innovation.

Around the world, technology startups have become major drivers of economic growth, job creation and productivity improvements. Countries that successfully nurture innovation ecosystems often generate significant economic value through locally developed technologies and digital solutions. Tanzania hopes to replicate some of that success.

The planned ICT Innovation Park and satellite innovation centres are intended to create environments where entrepreneurs, researchers and technology innovators can develop solutions to local challenges. Such initiatives could support innovation in sectors ranging from agriculture and healthcare to education, manufacturing and financial services.

Dira 2050 places strong emphasis on science, technology, research and development as critical drivers of future growth. The vision calls for stronger collaboration between universities, research institutions and industry, recognising that innovation often emerges where knowledge creation and commercial application intersect.

If successfully implemented, these initiatives could help Tanzania move from being primarily a consumer of technology to becoming a producer of innovative digital solutions. As digital adoption expands, so do risks. Cybersecurity has become one of the defining challenges of the digital age.

From cybercrime and data breaches to online fraud and misinformation, digital threats are growing in scale and sophistication worldwide. Tanzania is increasingly recognising that trust is essential for a successful digital economy. Individuals and businesses will only embrace digital services if they are confident their information is secure and their privacy protected.

The establishment of the Personal Data Protection Commission represents an important milestone in strengthening data governance. The commission oversees privacy protection, registration of data processors and investigation of data-related complaints.

Meanwhile, continued investment in cybersecurity systems is expected to strengthen the country’s resilience against evolving digital threats. Building robust cybersecurity frameworks will be critical not only for protecting citizens but also for attracting technology investment and supporting growth in digital commerce.

Private sector key to success While government is providing leadership and infrastructure, the private sector will play a decisive role in determining the success of Tanzania’s digital transformation. Te l e c o m m u n i c a t i o n s companies, technology firms, financial institutions, startups and investors will all contribute to building the digital ecosystem envisioned under Vision 2050.

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Public-private partnerships have already contributed significantly to telecommunications infrastructure expansion. Going forward, greater private sector participation will be required in areas such as innovation financing, digital services, technology manufacturing, skills development and research.

Creating an enabling business environment will therefore remain essential. Investors seek predictable policies, efficient regulation and strong institutions. The more effectively Tanzania creates those conditions, the greater its ability to attract capital and technology needed to accelerate digital transformation.

Looking towards 2050 The digital economy is no longer a future concept. It is already reshaping how societies function, how businesses compete and how governments deliver services.

For Tanzania, the challenge is not whether to embrace digital transformation, but how quickly and effectively it can do so. The investments currently being made in telecommunications infrastructure, broadband connectivity, digital government systems, innovation hubs, cybersecurity and skills development suggest the country is laying important foundations for the future.

Yet infrastructure alone will not deliver Vision 2050. Success will ultimately depend on building a digitally skilled population, fostering innovation, strengthening institutions and ensuring that the benefits of technology reach all citizens, regardless of location or income level.

If those conditions are met, technology could become one of the most powerful engines driving Tanzania’s transformation into a prosperous, knowledge-based and globally competitive economy.

As Dira 2050 makes clear, digital transformation is no longer simply about technology. It is about productivity, competitiveness, opportunity and national development. And for Tanzania, it may well become one of the defining forces shaping the country’s future over the next 25 years.