20 years ago, no one would have believed that the internet would become the biggest part of our lives. To emphasize, the internet has started and continues to revolutionize how people live. Remember how hard it was to reach someone by phone in the 2000s? Do you recall sending a letter through a bus just to send greetings to a long-lost family member you hadn’t seen or heard from in years? Do you remember how expensive to send Phone Letter famously knows as Barua ya Simu? Now, you can do all that with just a digital device and the internet. Your friends and family can show you where they are, what the weather is like, and much more thanks to the internet. But we shouldn’t miss the bigger picture: government revenue. The adoption of the internet has significantly increased government and individual revenues, both directly and indirectly. Let's dive in.
The Rise of Internet Connectivity and Its Impact on the Digital Economy
Look around today, Tanzania is undergoing the biggest digital transformation that few could have imagined two decades ago. The internet is no longer just a tool for communication, it’s reshaping industries, communities, and economies. Now so many businesses are found online and can be accessed through social media. According to recent data from TCRA quarterly 2024 report, internet subscriptions in Tanzania raised to 41.4 million by September 2024, marking a 5% increase from June of the same year. This rise in connectivity is directly linked to the growth of the digital economy, which is creating new opportunities and transforming daily life.
From Basic Connection to Life-Changing Innovations
In the early 2000s, the idea of everyone owning a smartphone seemed like a distant dream. Everyone would look at you like you are coming from a wealth family, owning a digital device was so much associated with wealth. The thought of connecting people across continents in real-time was almost unimaginable. Today, however, the rapid spread of mobile internet services has made this possible. The majority of internet connections in Tanzania are now accessed through mobile devices, further supported by growing 5G networks and the promising introduction of 6G in urban centers. The dream of making world connected as village is finally coming through.
The increased availability of mobile internet is not just a convenience it’s a revolution. Farmers are now using mobile apps to check market prices, weather forecasts and updates from respective authorities. Students and co-workers can attend virtual meeting and learning platforms. The healthcare industry is moving towards telemedicine, making it easier for remote communities to access medical advice, we can see that from the innovations like Dawa Mkononi and others. With the rise of digital platforms, services that were once considered luxuries are now available at the tap of a screen. Imagine being able to get food, car services and even book your nails appointments without leaving your house.
Fueling the Digital Economy
This growth in internet access is driving Tanzania’s digital economy. A relevant example is the rise of mobile money services M-Pesa, Tigo Pesa, Airtel Money, Azam Pay, you name it, which have become an alternative of financial transactions in the country. The TCRA report highlights that mobile money accounts grew from 55.7 million in June 2024 to 60.8 million in September 2024, reflecting the increasing reliance on digital transactions. Mobile money has empowered small businesses, enabling them to trade without traditional banking. People can now save, borrow, and transfer funds all from their phones. Mobile transactions have become a source of employment to many, providing some relief from the rising unemployment rate in Tanzania, which has now surpassed 2.38%, according to Statista Insights.
Moreover, the impact on government revenue is undeniable. Digital platforms and services are creating new streams of revenue, both directly through taxation and indirectly through increased economic activity. As more businesses go online, the government collects more in taxes from e-commerce, digital services, and mobile money transactions. The internet is not just connecting people, yet again it's enriching the nation.
The Backbone of a Growing Economy
The growth of the digital economy is tied to the strength of Tanzania’s internet infrastructure. The rollout of high-speed broadband services has paved the way for more advanced digital solutions, from e-commerce to cloud-based technologies. Faster internet means faster transactions, better customer experiences, and more innovative business models. For the first time, Tanzanian entrepreneurs are exploring into global markets with relative ease. Purchasing products from international brands within few minutes.
One key area where internet connectivity is making a significant difference is in education. More students are now able to access online courses, tutorials, and resources, opening up a world of learning opportunities that was once reserved for the privileged few. Likewise, in agriculture, farmers can connect with markets directly, cutting out middlemen and increasing their profits. The potential for growth in these sectors is immense.
A Future Full of Possibilities
While internet connectivity is rapidly expanding, there are still challenges. Many people in rural areas struggle with poor access to reliable and affordable internet services. This is a reason to why LP Digital rolled out a “Mtandao Ni Data Campaing” to raise awareness on the rise of data prices that hinders the use of digital platforms especially in rural area. Digital literacy also remains a challenge for those who are unfamiliar with technology, this is why LP Digital stays commited to empower youth and women with necessary digital skills through Digital Tanzania program and other related programs under the organization. However, the pace of development is encouraging, and the government, along with the private sector and non for profit organizations, is making significant investments to improve the situation.
As Tanzania continues to embrace digitalization, the opportunities for economic growth and social development will only increase. With greater connectivity, more people will have access to digital services, whether for business, education, or personal use. The rise of the internet is not just about faster connections; it’s about opening doors to new possibilities and reshaping Tanzania’s economic landscape.
Driving Digital Literacy for Social Change: The LP Digital Initiative
Through various digital programs, including Digital Tanzania, Dijito na Mimi Fellowship, and the She-Tech Incubator, LP Digital has empowered over 1,000 youth and women from diverse sectors and backgrounds with comprehensive, in-person digital skills training. Additionally, LP Digital launched its Digital Skills Online Courses, presented in an interactive format, which has reached over 500,000 people in just three months.
LP Digital's mission is to ensure that every youth and woman is equipped to leverage digital platforms for personal and professional growth. The organization emphasizes digital inclusion, providing participants with practical skills such as social media management, digital marketing, coding, and financial literacy. By offering both in-person and online training, LP Digital is bridging the digital divide, ensuring that even those in remote areas have access to life-changing opportunities through technology.
The organization also launched a Digital Skills Club in primary and secondary schools, providing a supportive community where members can collaborate, share knowledge, and enhance their digital competencies. By fostering a culture of continuous learning, the Digital Skills Club further amplifies LP Digital's mission to ensure that every boy and girl is equipped to leverage digital platforms for personal and professional growth.
The long-term goal is to create a generation of digitally literate individuals who can harness the power of technology to improve their livelihoods, contribute to the digital economy, and drive social change in Tanzania and beyond.
Recommendations:
Through the course of 4 years, LP Digital has encountered several observations that needs serious attention to ensure that Tanzania maximize the utilization of internet growth and social development. LP Digital recommends
- Expand internet infrastructure in rural areas ddressing the challenges faced by rural communities in accessing reliable internet services is important. By investing in reliable infrastructure, Tanzania can ensure that the benefits of the digital economy reach all citizens, promoting equality in access to opportunities.
- Expand and Support Digital Literacy Programs – government should provide unwavering support to organizations and stakeholders who are willingly trying to make positive change through digital innovation. Expand programs like LP Digital’s training for youth and women will help bridge the digital divide, enabling more individuals to participate in the growing digital economy.
- Integrate digital skills into education curricula - educational institutions should prepare students for a digital future by integrating digital skills into school curricula, ensuring that future generations are equipped to thrive.
- Encouraging small businesses to engage in e-commerce will further enhance economic opportunities and increase government revenue through taxes on digital transactions. This can only be done if the policies and regulations are in place to favour and provide inclusive environment to the entrepreneurs.
Conclusion
The internet has come a long way in Tanzania, from being a tool for communication to becoming the driving force behind the country’s digital economy. With connectivity on the rise and the digital economy expanding, Tanzania is poised for even greater growth in the coming years. As we move forward, the internet will continue to revolutionize lives, empower businesses, and boost government revenues, making it an essential pillar of Tanzania’s development in the digital age.
October, 2024