Thriving tech ecosystem propels Tanzania’s digital journey

Dar es Salaam. Tanzania is poised to become a major player in Africa’s (Information and Communications Technology) ICT landscape, as highlighted by recent assessments and a presentation by Dr Nkundwe Mwasaga, the director general of the Tanzania ICT Commission.

Dr Mwasaga’s presentation, delivered on March 18, 2024, outlined Tanzania’s progress towards becoming a digital powerhouse in Africa. He identified key areas of development and opportunities for growth, showcasing a clear path for Tanzania’s success.

It was in an assessment meeting on the progression of information, communication, and information technology in Tanzania on March 18, 2024.

The appraisal highlighted key areas of development and opportunities for growth, illuminating the path through which Tanzania can compete and excel within the ICT landscape in Africa.

One of the pivotal aspects underscored in Dr Mwasaga’s presentation was the proliferation of ICT innovation hubs across the country.

With more than 54 innovation hubs currently operational, predominantly driven by the private sector, Tanzania is nurturing a vibrant ecosystem for tech-driven entrepreneurship.

Additionally, the imminent establishment of eight Jamii ICT Innovation Hubs strategically located across various zones promises to further catalyse innovation and technological advancement.

Reflecting on Tanzania’s performance against its income group and region, Dr Mwasaga elucidated the nation’s commendable standing.

Ranking 24th among lower-middle-income countries and 9th within Africa, Tanzania boasts superior performance across multiple pillars and sub-pillars of ICT development, including access, governance, trust, and regulation.

“This positioning underscores our commitment to fostering an inclusive and conducive environment for ICT growth and development,” he said.

The role of the private sector in driving Tanzania’s ICT agenda cannot be overstated. As per the African Development Bank, ICT contributes seven percent to Africa’s cumulative GDP, while Tanzania’s ICT sector alone contributes 1.5 percent to its GDP.

Leveraging regional collaborations such as the East African Community (EAC), the Southern African Development Community (SADC), and the African Continental Free Trade Area (AfCFTA), Dr Mwasaga noted that Tanzania’s startups were primed to access vast markets comprising millions of consumers and billions of dollars in GDP.

Dr Mwasaga emphasised the demographic dividend and digital readiness of Tanzania’s populace, stating, “With a youthful population comprising 33 percent between the ages of 15 and 34, coupled with increasing internet penetration and smartphone ownership, Tanzania is poised to harness the power of its human capital for digital innovation and entrepreneurship.”

Moreover, he said, the burgeoning number of graduates in the field of ICT underscored Tanzania’s commitment to nurturing a skilled workforce capable of driving technological transformation.

In 2022, more than 2,166 students graduated in the field of ICT, according to the Tanzania Commission for Universities (TCU).

The burgeoning startup ecosystem in Tanzania also reflected the country’s growing digital landscape. With a 15 percent increase in the number of known startups and a remarkable 14.65 percent growth in startup employment in 2022, Tanzania’s entrepreneurial spirit is thriving.

“These startups not only contribute to economic growth but also serve as catalysts for job creation and innovation, propelling Tanzania towards its digital aspirations,” he noted.

Comparative analyses of ICT contributions to GDP within the East African Community (EAC) further highlight Tanzania’s potential for digital leadership.

While countries like Rwanda, Kenya, and Uganda have made significant strides in leveraging ICT for economic growth, Tanzania’s trajectory is equally promising.

“By fostering private sector participation through competitive tendering methods and collaborative initiatives with local governments, we aim to accelerate the development of our digital infrastructure and amplify the sector’s contribution to GDP,” Dr Mwasaga said.

An ICT expert based in Dar es Salaam, Dr Jonathan Mburi, said the presentation, which he had come across, only underscored the country’s resolute commitment to becoming a digital economy hub in East Africa and beyond.

“With a robust ecosystem of innovation hubs, a mushrooming startup landscape, and strategic collaborations regionally and continentally, Tanzania stands poised to seize the opportunities of the digital age and emerge as a trailblazer in Africa’s ICT landscape,” he said.

“However, he pointed out that existing challenges, especially those facing Tanzanian startups, must be addressed appropriately.

‘It is true that Tanzania, through the ICTC, has made great efforts to create an enabling environment, but more effort is needed, especially in the case of startups, to attract more investors,” he said.

But, Dr Mwasaga aptly said, “Tanzania’s digital journey is not just about technological advancement; it’s about unlocking the immense potential of our people and propelling our nation towards sustainable growth and prosperity in the digital era.”