How internet boom is changing Tanzania’s digital landscape

Tanzania’s digital landscape is witnessing transformative changes, with nearly seven million new internet users emerging over the past three months. This surge is not just a number but a testament to Tanzania’s strategic moves towards a digital future. The Digital Economy Strategic Framework 2024-2034 underscores this commitment, aiming to propel economic growth through enhanced digital infrastructure and connectivity.

One of the framework’s primary goals is to bolster broadband access and ensure network quality improvements for all Tanzanians. This focus is particularly crucial for rural and underserved regions, where the gap in digital accessibility must be bridged. Despite the increasing reliance on mobile broadband, which boasted 25.6 million subscriptions as of December 2024, older 2G networks remain predominant in rural areas, with over 22 million Tanzanians still using these services.

Fiber-optic services, though growing slowly, present promising potential with 71,661 FTTH and 11,540 FTTO subscriptions recorded in 2024. As these numbers indicate, the backbone of a robust internet infrastructure is being progressively developed, geared towards a future-ready Tanzania.

Dr Jabiri Bakari, the TCRA Director General, attributes the internet usage boom to government-driven improvements in the business environment and sustained investment influx. The emergence of digital clubs engaging younger demographics highlights a push towards integrating the digital economy into every corner of Tanzania.

The usage of artificial intelligence (AI) is poised to transform sectors such as education, infrastructure, and healthcare. Dr Bakari anticipates significant AI growth, emphasizing cross-sector collaboration for responsible integration.

As of late 2024, 4G services cover 88% of the population, with notable increases in 3G and 2G coverage. Although the rollout of 5G services is gradually advancing, reaching 20% of the population, the overall enhancement of network quality ensures better access to high-speed internet.

Dr Lutengano Mwinuka notes the economic impact of rising internet usage, particularly in communication and financial transactions. With smartphone penetration climbing to 35.99% and feature phone use at 87.39%, more Tanzanians are connecting to digital services.

While digital adoption is on the rise, the affordability of smartphones remains a hurdle. Dr Mwinuka urges the government to lower taxes on mobile phones and praises mobile companies for introducing loan schemes to facilitate broader access to the digital economy.