Tanzania's digital dividend
Rapid growth in mobile data has been accompanied by much greater investment in fixed broadband as Tanzania seeks a digital future.
Tanzania's digital sector has experienced rapid growth over the past two decades, driven by the widespread adoption of mobile technology. Mobile connections now outnumber people in the country, with 79 million active mobile connections equivalent to 114% of the population, and 20.2 million internet users, or 29% of the population. Over 85.8% of mobile connections utilize broadband technologies, indicating a rapid transition away from basic voice services.
The mobile sector's growth can be attributed to market liberalization, falling handset prices, and the introduction of mobile money, which has brought financial services to millions of people for the first time. Competition among mobile network operators, including Vodacom Tanzania, Airtel Tanzania, Yas Tanzania, Halotel, and the state-owned Tanzania Telecommunication Corporation (TTCL), remains intense, shifting focus from basic voice services to higher-value digital services and mobile broadband.
With smartphone ownership on the rise, mobile data traffic in East Africa is projected to grow by 20% to 25% annually, primarily driven by video streaming, social media, cloud applications, and digital financial services. This expansion is fueled by strong capital investment, with Vodacom Tanzania's 5G network launched in 2022, followed by Airtel Tanzania's expansion in 2024.
Meanwhile, Halotel has invested in fibre transmission and mobile infrastructure outside major urban centers to extend broadband access to underdeveloped districts.
Recognizing the importance of fixed broadband infrastructure, Tanzania has launched its National ICT Broadband Backbone (NICTBB) project. Managed by TTCL, the NICTBB fibre network spans over 15,000 kilometers, connecting major cities and linking Tanzania to neighboring countries. Recent projects include a 183-kilometer line to connect with the Democratic Republic of Congo and the Dar es Salaam Metropolitan Network, which will enhance capacity in the country's economic hub.
The NICTBB backbone is becoming increasingly vital as Tanzania positions itself as a regional digital gateway. International traffic enters the country via several subsea cables, positioning Tanzania as an ICT hub. Vodacom, Airtel, Halotel, and Yas have deployed fibre infrastructure in commercial and industrial areas to support cloud-based systems, secure banking links, and real-time data transmission for mining firms.
Digital platforms also empower farmers by providing market information, financial services, and agricultural guidance.
The Tanzanian government supports this digital transformation through the $150 million Digital Tanzania Project, funded by the World Bank. The initiative aims to improve rural connectivity, cybersecurity, and digital skills development while expanding broadband access to schools, healthcare facilities, and local government offices. Additionally, the government is transitioning to e-government services to reduce transaction costs and enhance transparency.
Satellite connectivity plays a crucial role in extending broadband access to rural areas, where laying terrestrial networks would be prohibitively expensive. Low Earth Orbit (LEO) satellite systems offer faster broadband connections suitable for everyday internet use, as they orbit closer to Earth than traditional geostationary satellites, reducing data transmission delays and costs.
Tanzania has established ten data centres in Dar es Salaam and one in Dodoma, operated by six carriers, including Wingu Africa. These centers aim to reduce latency and storage costs by hosting data locally, rather than relying on overseas data centres.
Written by urgent.news from Africa Business's reporting — not their text. Machine-written — it may contain errors, so check the original before relying on it.
