Tanzania moves to lower prices of locally manufactured electronics

Dar es Salaam. Tanzania is taking steps to ensure that locally manufactured electronic products are more affordable than imported alternatives, as part of a wider strategy to boost local industries and create employment opportunities.

The Information and Communication Technology Commission (ICTC), which oversees the implementation of the national ICT policy and sectoral growth, has intensified efforts to support local investors in the technology manufacturing sector.

This initiative aligns with the country’s vision of fostering a robust digital economy.

“If someone has invested their capital in a local factory, their products should be more affordable than imported goods. We will work with them to make sure that locally manufactured products are cost-effective so that we can create more jobs in Tanzania,” said the commission’s Director General, Dr Nkundwe Mwasaga, during his recent visit to Tanzatech Electronics Limited in Arusha on 23 February 2025.

The ICTC plays a key role in promoting ICT companies, including startups, to enhance Tanzania’s competitiveness in the digital economy.

President Samia Suluhu Hassan has repeatedly emphasised the importance of developing Tanzania’s digital economy by supporting youth-led enterprises and locally manufactured ICT equipment.

“The President directed us to find investors who will establish factories to produce various ICT products here in Tanzania so that we can work together to drive the digital economy agenda,” Dr Mwasaga stated.

He urged young Tanzanians to take inspiration from those who are already setting up local manufacturing industries, highlighting the vast market for digital products.

The government’s goal is to strengthen local industries and expand the market for ICT equipment, including mobile phones, laptops, and other electronic devices.

“We are continuously working to attract investors who can establish ICT manufacturing industries in the country,” Dr Mwasaga said, adding that the digital economy initiative would significantly improve the livelihoods of young people and enhance key sectors such as agriculture, livestock, and commerce.

By manufacturing ICT products locally, he explained, it would also become easier to develop digital solutions that address socio-economic challenges, a crucial step towards achieving a fully integrated digital economy.

Despite these efforts, local manufacturers continue to face major hurdles, particularly taxation. The Managing Director of Tanzatech Electronics Limited, Mr Gurveer Hans, noted that multiple layers of taxation along the production and distribution chain make locally produced products more expensive for consumers.

“We import raw materials from our partners in China, but we are burdened by heavy taxes, which make locally made products costly for consumers,” he said. He urged the government to consider reducing taxes to make locally produced ICT equipment more competitive in the market.

Tanzania has been actively pushing for a transition to a digital economy, driven by investments in ICT infrastructure, policy reforms, and support for local innovations.

The government’s commitment to making local ICT products affordable aligns with its broader strategy of reducing dependence on imported goods while fostering homegrown solutions.

The ICT Commission’s role in facilitating partnerships and encouraging investment in local technology manufacturing is expected to be instrumental in Tanzania’s digital transformation journey.

Ensuring affordability and accessibility of locally made devices will accelerate digital inclusion and innovation across various sectors.

With increasing demand for ICT products and solutions, fostering local manufacturing will not only create employment but also strengthen Tanzania’s position in the regional digital economy.

If effectively implemented, the government’s initiative could lay a strong foundation for a self-reliant and technologically advanced nation.