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How banks, telcos in Tanzania are tackling internet outage

ATM pic

The internet outage that began on May 12, 2024 has hit banking services hard in Tanzania. PHOTO | FILE

What you need to know:

  • Service providers, including banks, insurance and telecom companies, among others, have been busy working out ways of enhancing their internal systems as the nationwide internet disruption entered its third day on Tuesday

Dar es Salaam. Service providers, including banks, insurance and telecom companies, among others, have been busy working out ways of enhancing their internal systems as the nationwide internet disruption entered its third day on Tuesday.

The going has been tough for Tanzania and several other African countries due to an internet outage that began on Sunday, inconveniencing businesses, service providers and consumers alike.

As such, service providers have been ramping up efforts to utilise their own internal systems in efforts to ensure that they remain in business and continue serving their clients.

For instance, the National Health Insurance Fund (NHIF) said on Tuesday that its systems still continue to provide service as usual despite the ongoing internet connectivity challenge.

Meanwhile, the Tanzania Bankers Association (TBA) said banks have enhanced the operational capabilities of their physical bransches to accommodate the influx of walk-in customers.

One of the worst internet disruptions in Tanzania started on Sunday, with the Tanzania Communications Regulatory Authority (TCRA) saying the problem was occasioned by damage to the subsea cable systems operated by the Eastern Africa Submarine Cable System (Eassy) and the Seychelles East African Communication (Seacom).

The disruption, the TCRA said, occurred in Mozambique and South Africa.

Commenting on the matter, the Tigo Tanzania chief technical and information officer, Mr Emmanuel Mallya, said the firm was still providing internet services, thanks to its connection to another link (the northern link).

As such, when the Southern link was disrupted, Tigo immediately connected to the northern link.

“We are a shareholder for Eassy and that is why we have been resilient during this difficult time,” he said.

At some point, he said, Tigo was almost fully recovering, but with the huge number of consumers shifting to the company, services were prone to disruptions during peak hours.

“A lasting solution to this challenge lies in the need for the government to invite more investors in the sector and from what I know, a company known as 2 Africa is currently eyeing the sector and could finally make it before June this year,” Mr Mallya said.

According to the TBA chairman Mr Theobald Sabi, bankers were fully aware of disruptions that the current internet outage was causing to their banking operations, especially affecting the alternative banking services to uphold customer’s experience.

“We are actively working with service providers to restore connectivity and return to normal operations as quickly as possible. In the interim, banks have enhanced the operational capabilities of their physical branches to accommodate the influx of walk-in customers who were otherwise served via the impacted alternative channels.”

Mr Sabi added that on behalf of the association, he appreciated customers’ patience and understanding since the problem began. 

For her part, the NHIF acting communications manager, Ms Grace Michael, said, “Our system is stable and we are continuing to provide services as usual. We haven’t received complaints from service providers.”

She added even if there will be a challenges, their service providers have already been informed of alternative ways of continuing to provide services.

“We are provide service to patients so we must ensure that there are other alternatives in case of challenges with internet connectivity.”

The TCRA director general, Dr Jabiri Bakari, said on Tuesday that the situation will return to normal, depending on how soon the operators get alternative links.

“As for now, it is difficult to know how soon the situation will normalize,” he said, adding that operators were working around the clock to restore normalcy and that some progress can be seen.

Going forward, he said, some investors were in the pipeline, including 2 Africa, who have expressed their intention to start providing undersea cables services.

With an increase in the number of operators, said Dr Bakari, Tanzania would be on the right path to becoming resilient on the subject.

On Tuesday, Mr Bakari said in a public notice that following the internet outage challenge that occurred on Sunday efforts were still ongoing by telecom service providers in ensuring the services is improved.

“We are continuing to make a close follow-up on the matter and ensure that access to internet services is made available by all internet providers,” he said.

Commenting on that, head of the Medical Council, Dr Harold Adamson, shared similar views.

“We always have alternative backup in case of any challenge related to internet,” he said.

Dr Adamson added that their customers continue to receive services, adding their members use alternative backup systems in case of any challenge.