Dar es Salaam. Tanzania’s digital landscape is experiencing rapid transformation, characterised by a significant increase in internet connectivity that promises to benefit the country’s economy.
A recent report indicates nearly seven million new internet users emerged in just three months.
This growth coincides with Tanzania’s commitment to developing a digital economy, guided by the Digital Economy Strategic Framework 2024-2034, which was launched in July 2024.
The framework aims to stimulate economic growth by focusing on digital infrastructure, connectivity, and technological advancements.
A primary objective is to expand broadband access and enhance network quality to ensure that all Tanzanians, particularly in rural and underserved areas, have reliable internet access.
According to a report from the Tanzania Communications Regulatory Authority (TCRA), internet subscriptions have risen from 41.4 million in the third quarter of 2024 to 48 million by the year’s end.
This increase reflects the growing demand for digital services, driven by government policies and the need for connectivity in education, business, and other sectors.
Mobile broadband is the most common means of internet access, with 25.6 million subscriptions as of December 2024.
This underscores the ongoing reliance on mobile networks, as most Tanzanians use mobile phones to connect to the internet.
Despite the expansion of mobile broadband, older technologies like 2G networks are still in use, especially in rural areas where mobile phones are the primary means of communication.
Over 22 million Tanzanians continue to use 2G services, highlighting the persistence of older technologies.
However, the country is making progress in adopting faster internet technologies.
Fibre-optic services, including Fibre to the Home (FTTH) and Fibre to the Office (FTTO), are growing but at a slower rate, with FTTH reaching 71,661 subscriptions and FTTO at 11,540 by the end of 2024.
The TCRA Director General, Dr Jabiri Bakari, attributes the growth in internet usage to government initiatives focused on improving the business environment and attracting investment.
These initiatives encompass better infrastructure, policy reforms, and efforts to connect rural areas to the national electricity grid, all of which have contributed to increased internet availability.
Dr Bakari emphasised the importance of fostering innovation and competition as the number of internet users rises.
He stated, “Several factors are driving this growth, such as connecting electricity to rural areas and making internet services available at home, which has boosted demand. Consequently, the internet spectrum has expanded.”
He also mentioned the emergence of digital clubs that engage younger generations, particularly in rural areas, in the digital economy.
Furthermore, Dr Bakari highlighted the role of artificial intelligence (AI) in facilitating digital transformation.
Sectors such as education, infrastructure, and healthcare are increasingly adopting AI technologies to enhance service delivery.
He anticipates further growth in AI applications and stressed the need for cross-sector collaboration to integrate AI responsibly and sustainably into Tanzanian society.
The TCRA report also indicates advancements in mobile network coverage.
As of December 2024, 4G services covered 88 percent of the population, an increase from 84.9 percent in the previous quarter.
Coverage for 3G services rose to 91 percent, while 2G coverage increased to 98.1 percent.
Although the rollout of 5G services is slower, it is progressing, with coverage reaching 20 percent in December, up from 18 percent in September 2024.
This expansion of 4G, 3G, and 5G networks is expected to enhance access to high-speed internet throughout the country.
The rise in internet usage is also supported by a growing number of communication devices.
By December 2024, smartphone penetration had reached 35.99 percent, up from 33.85 percent in September.
Feature phone penetration also grew, reaching 87.39 percent from 84.83 percent.
These figures reflect an expanding digital consumer base and increasing reliance on mobile devices for internet access.
Dr Lutengano Mwinuka, an economics lecturer at the University of Dodoma, emphasized the economic significance of internet usage.
He pointed out that the internet provides access to crucial market and social information, improving communication and financial transactions.
For example, mobile banking and mobile money services are playing a vital role in facilitating the flow of money, contributing to economic growth.
However, Dr Mwinuka expressed concerns about the affordability of smartphones, noting that while internet usage is rising, the cost of mobile phones remains a barrier, particularly in rural areas.
He called on the government to reduce taxes on mobile phone imports to make smartphones more affordable.
He also praised mobile companies that have introduced phone loan schemes to help bridge the affordability gap and enable more Tanzanians to join the digital economy.
