Telecoms & IT
From The Report: Tanzania 2018
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Tanzania’s telecoms industry is considered as a model for development in sub-Saharan Africa. The sector has recorded rapid growth in activity, supported by some of the lowest user tariffs in Africa, speedy smartphone and mobile broadband uptake, and steady investment in infrastructure and next-generation service expansion. However, sustaining growth will require telecoms operators to navigate a handful of obstacles, including one of the highest tax rates in Africa, as well as a recent push by the government to expedite required initial public offerings on the Dar es Salaam Stock Exchange. Although these challenges could weigh on future revenues, the country’s relatively low levels of mobile broadband penetration, combined with demand for cashless banking services and new investment in infrastructure, should keep telecoms growing steadily over the medium term. Improvements in and expansion of ICT services have accelerated in Tanzania over the last decade, supported by new submarine cable connectivity, successful completion of a National ICT Broadband Backbone project and rising investment in mobile broadband networks. However, the country’s large rural population and substantial small and medium-sized enterprise segment means that internet penetration remains low and ICT services are out of reach for most businesses. Steadily rising demand for next-generation services and rapid growth in e-government and e-payment systems could see that change in the coming years, with internet adoption, mobile broadband network coverage and digital financial services set to continue on a strong growth path into 2018. This chapter contains an interview with James Kilaba, Director-General, Tanzania Communications Regulatory Authority.

Articles from this Chapter

Overview

Upwardly mobile: The country’s successful telecoms legacy looks set to continue
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One of the most bullish outlooks of any sector in the country can be found in Tanzania’s telecoms industry. Already a model for development in sub-Saharan Africa, the sector has recorded rapid recent growth in activity, supported by some of the lowest user tariffs in Africa, speedy smartphone and mobile broadband uptake, and steady investment in infrastructure and next-generation service expansion. As is the case in many of Africa’s telecoms markets, the mobile money and data segments…

Analysis

Aiming to expand: Growth anticipated as new laws improve the investment climate
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The steady process of telecoms liberalisation in Tanzania has seen private investment in the sector soar in recent years, as mobile operators invest heavily in broadening next-generation services and mobilemoney platforms. In a bid to ensure that the domestic economy benefits from the increased activity in the sector, successive presidential administrations have sought to widen the ability of local investors to own stakes in the country’s mobile firms. As a result, the previous government’s…

Interview

Unlocking potential: James Kilaba, Director-General, Tanzania Communications Regulatory Authority, on ICT’s role in evolving the economy
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Interview:James Kilaba, Director-General, Tanzania Communications Regulatory Authority What is the greatest challenge to boosting ICT use in Tanzania and sub-Saharan Africa? JAMES KILABA: One challenge is inadequate power supply. Nearly one in five people in the world live without access to electricity, many of them located beyond the reach of the current grid system. Of these 1.2bn people, 95% are in sub-Saharan Africa and developing countries in Asia. Based on these figures, ICT service…

Analysis

Supporting access: Infrastructure around the country continues to improve
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With explosive growth in mobile broadband uptake since 2012, Tanzania’s rapidly expanding 3G and 4G networks are driving urban telecoms growth and benefitting from significant capital expenditure in recent times. However, 3G coverage remains limited to just 35% of the population, while 4G services do not extend beyond urban areas at present. The government and the private sector are working in tandem to reduce access gaps, with the goal of attaining nationwide communications and internet…

Overview

Foundation for growth: Digital development continues across all IT segments
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Improvements in and expansion of ICT services has accelerated in Tanzania over the last decade, supported by new submarine cable connectivity, successful completion of a National ICT Broadband Backbone project and rising investment in mobile broadband networks. Martin Warioba, managing partner of WS Technology Consulting, told OBG, “Local ICT firms providing networking, hardware, software and project management solutions should benefit from the increasing focus on IT services from the public…