Tanzania: How Tanzania's Telecoms Sector Is Supporting the Country's Economic Growth

Telecoms transmission tower

Tanzania's economy has seen a period of steady economic growth for several years, helping the country reach its ambitious target of becoming a lower-middle-income economy five years ahead of schedule.

At the same time, Tanzania has worked hard to improve the overall business environment, providing businesses with stability and support to encourage inclusive economic growth.

Indeed, according to the World Bank, the country's overall Ease of Doing Business Score has increased steadily from 49.7 per cent in 2015 to 54.5 in 2020. Source:

Statistics such as these show that the country has made a number of structural reforms, which have helped new businesses prosper.

At the same time, Tanzania's business environment has also been strengthened by the country's growing digital landscape.

In recent years, the country's digital infrastructure - such as submarine internet cables, the ICT Broadband Backbone (NICTBB) and the current roll-out of 4G - has connected a significant part of the population to internet services.

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These developments are having a number of tangible benefits for the Tanzanian economy. For instance, the expansion of mobile money has provided countless people with a way of managing their finances and making payments.

Elsewhere, there are new and end exciting business opportunities that have emerged in the field of e-commerce, linking SMEs to wider markets and encouraging the transfer of knowledge between them and larger businesses.

Meanwhile, the country's telecom providers are also creating innovative solutions to help provide the foundations for the next generation of businesses and entrepreneurs.

For example, Tigo Business - a service provided by one of the country's main operators - has been specifically tailored for the needs of businesses of all sizes.

Tigo Business provides a comprehensive service for internet connectivity, cloud data storage and voice solutions.

For SMEs in particular, these services provide a valuable opportunity to gain access to new markets and build relationships with new customers.

Given that micro, small, and medium-sized enterprises contribute to roughly 27 per cent on the country's GDP and employ over 5.2 million, it is easy to see how services such as these are playing their part in propelling the country forward.

The telecoms sector has supported the country's growth. In order to help companies like Tigo continue to make business-supportive solutions, it is important that we continue to work closely with the sector. By encouraging regulation that supports efficiency and business operations, we can continue to ensure that the telecoms sector continues to drive economic growth.

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