Taxes and bureaucracy: The two barriers to Airtel’s digital vision
Managing Director of Airtel Tanzania Charles Kamoto speaks during a communications sector stakeholders’ meeting organised by the Ministry of Communications and Information Technology in Dodoma. PHOTO | COURTESY
Dodoma. Airtel Tanzania has proposed a raft of fiscal and regulatory reforms aimed at accelerating digital inclusion, including tax relief on telecom services and faster approvals for rural infrastructure deployment.
The proposals were tabled during a performance review session convened by the Ministry of Communications and Information Technology in Dodoma, bringing together regulators, telecom operators, development partners and private sector players to assess progress under the National Development Vision 2050 and the Tanzania Digital Economy Development Strategy 2024–2034.
Speaking at the meeting, Airtel Tanzania Managing Director Mr Charles Kamoto urged the government to lower excise duty on telecom services from 17 percent to 10 percent, arguing that the move would reduce the cost burden on consumers and expand access to digital services.
He further called for the reinstatement of VAT exemption on smartphones to improve device affordability, and expediting Environmental Impact Assessment (EIA) approvals to fast-track rural network rollout.
“As Tanzania advances toward Dira 2050, Airtel Tanzania remains committed not only as a telecommunications provider but as a strategic partner in national development. Together, through strong public–private collaboration, we can build a connected, inclusive and prosperous digital future for all Tanzanians,” said Mr Kamoto.
Between 2021 and 2025, Airtel Tanzania invested $316 million in network expansion and modernisation. The firm currently operates 3,385 sites nationwide, nearly all of them 4G-enabled, with 139 supporting 5G services. It has also deployed 3,722 kilometres of fibre optic infrastructure to strengthen domestic and cross-border connectivity.
The company is constructing a data centre in Arusha to enhance service resilience and reduce latency in the Northern Zone, and has participated in the landing of the 2Africa submarine cable to bolster international bandwidth capacity.
Airtel Tanzania serves 20.4 million customers and reported annualised revenue of $430 million with a 47.5 percent EBITDA margin in the 2024/25 financial year. From 2021 to 2025, the company paid $643 million in taxes and regulatory fees and distributed $110 million in dividends to the Government of Tanzania.
The session was officiated by the Minister for Communications and Information Technology, Angellah Kairuki, who emphasised the importance of closer collaboration between the public and private sectors to fast-track the implementation of national digital policies.
She called for the operationalisation of the monitoring framework for the National Digital Economy Strategy, launched in 2024 by Samia Suluhu Hassan, and the establishment of a Digital Economy Satellite Account to better measure ICT’s contribution to GDP.
The minister reiterated the government’s commitment to eliminating communication “zero spots” by 2030, enhancing infrastructure sharing, advancing the National Space Programme and finalising protections for Critical Information Infrastructure in line with the Cybercrimes Act of 2015.
