Chinese ICT investment to fuel 10-year digital economy strategy

Dar es Salaam. Tanzania’s drive to build a robust digital economy is gathering speed as over 600 foreign companies, primarily from China, prepare to invest in the country’s electronic manufacturing sector.

This development is expected to reduce the country’s reliance on imported ICT equipment, foster job creation, and establish Tanzania as a hub for technology innovation in Africa.

The recent signing of a Memorandum of Understanding (MoU) between the government and China Electronic Information Service Co. Ltd. (CECIS), a subsidiary of China Electronic Corporation (CEC), marks a critical step in Tanzania’s digital transformation journey.

This agreement follows President Samia Suluhu Hassan’s visit to China in September, where she emphasised the importance of cooperation in digital technology and skills transfer during discussions with Chinese leaders and enterprise executives.

The collaboration is expected to accelerate the implementation of Tanzania’s 10-year Digital Economy Framework (2024–2034), which aims to position the country as a regional leader in digital economy, innovation and manufacturing.

According to the Director General of the Information and Communication Technology Commission (ICTC), Dr Moses Mwasaga, the collaboration will support the establishment of more than 600 companies focused on manufacturing computer and electronic equipment.

“Our goal is to make Tanzania a hub for electronic and computer manufacturing in Africa. By connecting these foreign investors with our young, innovative Tanzanians through incubation centres, we will ignite an ICT revolution in the country,” said Dr Mwasaga.

This initiative comes at a time when Tanzania is laying the groundwork to reduce its dependence on imported ICT equipment.

A key part of the strategy is the establishment of an advanced laboratory dedicated to manufacturing ICT devices locally, spearheaded by a partnership between ICTC and the Tanzania Industrial Research and Development Organisation (TIRDO).

Dr Mwasaga told The Citizen that the move to domestically produce ICT equipment is crucial for Tanzania’s digital future.

“Currently, all our ICT equipment is imported, a costly practice that drains foreign currency reserves and exposes us to counterfeit goods. The investment from China will allow us to manufacture high-quality equipment locally, reducing costs and fostering technological self-sufficiency,” he added.

The partnership with Chinese companies is expected to generate significant employment opportunities, especially for Tanzania’s young graduates.

“The arrival of foreign investors remains a significant opportunity for our country to achieve its development goals over the next 10 years. Many graduates will have places to work, unlike the current situation,” Dr Mwasaga noted.

In her remarks during the MoU signing on October 23, 2024, Deputy Minister for Information, Communication, and Information Technology, Ms Maryprisca Mahundi, stated that the MoU aligns with the government’s long-term policy of strengthening cooperation to enhance the digital economy.

“This collaboration will maximise the potential of our digital initiatives, enhance the capacity of our ICT professionals, and attract further investment, ultimately driving job creation and economic development,” Ms Mahundi said.

One of the key components of the MoU is technology transfer. Dr Mwasaga insisted that the Chinese companies are not only investing in Tanzania but are also entering into partnerships with local firms to jointly run factories and promote skill development.