Tanzania accelerates digital transformation

DODOMA: DIGITAL transformation has been hyped as one of the key drivers that can significantly propel Tanzania towards its Dira 2050 goals.

The transformation is expected to enhance economic growth, improve service delivery, and foster innovation through digital technologies.

Realizing this, investment in the communications sector in terms of budget allocations, completing and executing new infrastructure, and building human capital are unavoidable.

This is why since President Dr Samia Suluhu Hassan assumed power for her second term, her government has been pushing for the execution of strategic infrastructure projects that will significantly enhance the anticipated transformation.

As of April 2026, the government, through the Universal Communications Service Access Fund (UCSAF), had already entered into agreements with service providers to deliver communication services to 2,293 wards comprising 5,489 villages with a population of 32,568,216.

Upon completion of these projects, a total of 2,454 towers will have been constructed.

Furthermore, out of these wards, 1,979 wards comprising 5,074 villages and 29,257,814 residents are receiving communication services through the 2,151 towers already constructed.

Implementation is ongoing in 301 wards with 301 towers across 388 villages and approximately 3,177,600 residents.

The latest UCSAF report shows that the 758-ower construction project has been completed, benefiting 8.5 million citizens.

On 10 April 2026, the launch ceremony for the 758-tower construction project was held and was officiated by President Samia Suluhu Hassan.

Also, the government, through UCSAF, is continuing with the implementation of the project to construct 287 towers in 287 wards with the objective of delivering communication services to villages under Phase Ten (10).

The official launch of the implementation of this project took place on December 5, 2025. The implementation period is 15 months, and a total of 29bn/- has been allocated for its implementation.

Apart from that, the government is planning to execute a strategic project for delivering communication services in strategic areas such as SGR/MGR, TAZARA, border areas, and National Parks.

Regarding the project, various steps have been undertaken, including the completion of data collection (identification), information analysis, verification, and procurement.

Under the project, a total of 280 towers are expected to be constructed in order to provide communication services in these strategic areas and to enable citizens to benefit from those services.

To maintain the speed of these projects and others, the Minister for Communications and Information Technology, Angellah Kairuki, tabled a budget of 222.6bn/- for the 2026/27 financial year, with 94.1 percent allocated to development projects aimed at boosting the country’s digital economy transformation.

Tabling the plan in April this year, Minister Kairuki highlighted a strategic shift toward expanding digital infrastructure, supporting ICT startups, and strengthening cybersecurity nationwide.

The government aims to accelerate the development of ICT infrastructure to ensure communication services reach all citizens, especially those in rural areas.

Minister Kairuki listed eight key priorities, including the construction and reinforcement of the National ICT Broadband Backbone, a step that will increase the speed, security, and quality of internet services.

Likewise, the government will continue to improve the Physical Addressing and Postcode system to streamline the delivery of social, economic, and governmental services.

In addition, the Ministry has emphasized increasing communication availability in rural areas to ensure citizens in peripheral areas are not left behind in the digital revolution.

Alongside this, the government will continue to strengthen the capacity of public institutions in carrying out ICT responsibilities to enhance efficiency, transparency, and accountability.

To foster innovation and employment, the Ministry plans to proceed with the construction of ICT innovation hubs (ICT Parks), which will help nurture young talent and generate technological solutions.

This measure aims to stimulate innovation and increase youth contribution to the growth of the digital economy.

Other priorities include strengthening e-government services, enhancing cybersecurity, building ICT skills among youth, and strengthening collaboration with the private sector.

Overall, these priorities reflect the government’s commitment to building a digital Tanzania with strong, inclusive, and innovative communication for the benefit of all citizens.

In October this year, UCSAF and the Tanzania Institute of Education (TET) signed a Memorandum of Understanding (MoU), which aligns with Dira 2050’s target of digital transformation as an economic driver.

The deal will see the two parties team up to invest in digital educational content and build teacher capacity—a critical step in preparing students to participate fully in the digital economy.

In executing this role, UCSAF recognises that the availability of communication infrastructure alone is not enough to bring about digital transformation without suitable content and the skills to use these technologies for public benefit.

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Consequently, UCSAF is collaborating with other sectors, including the education sector, to ensure society has the capacity to utilise services stemming from the presence of communication and technology overall.

Furthermore, the education sector is among the key sectors that stand to benefit from ICT advancements. The use of technology in teaching and learning plays a major role in expanding access to knowledge, improving the quality of education, and narrowing the gap in learning opportunities between urban and rural areas.

So far, UCSAF has executed several projects in the education sector. This includes the implementation of a project to supply public schools with ICT equipment alongside connecting them to the internet, where over 1,121 schools have so far been provided with ICT equipment, including computers, projectors, and printers.

This ICT training for secondary school teachers aims to equip teachers with the ability to use ICT equipment in instruction. So far, a total of 4,410 teachers have undergone this training provided by experts from the** University of Dar es Salaam (UDSM), **the University of Dodoma (UDOM), Mbeya University of Science and Technology (MUST), the Open University of Tanzania (OUT), and Dar es Salaam Institute of Technology (DIT).

There is also the “ICT for Girls” training initiative, which aims to build digital usage skills among young women.

Since the country eyes a digital economy, enhancing startups is a crucial aspect. This is because they drive the digital economy by introducing new technologies, creating jobs, and solving local and global market problems.

In boosting startups, the government introduced tax measures under the 2026 Finance Act intended to support startups and improve the business environment.

The measures include a one-year tax holiday for qualifying new startups under changes to the presumptive tax regime, an increase in the presumptive taxation threshold from 100m/- to 200m/- and a reduction in the retained earnings taxation threshold from 30 percent to 15 per cent of profits.

Minister for Finance, Amb Khamis Mussa Omar, said the government would work with domestic institutions, international investors, and development partners to strengthen startup financing and promote private-sector development.

Speaking during a stakeholder session on the Tanzania Alternative Financing and Innovation Initiative on the second day of Tanzania Startup Week 2026 in Dar es Salaam, Minister Omar said the government targets attracting private investors to support the initiative and strengthen professional management.

“We plan to have a fund of funds, which basically means the fund should not be investing directly in the startups but through fund managers,” he said.

Tanzania and the Democratic Republic of Congo (DRC) are currently pursuing the construction of a national fiber-optic cable from Kigoma in Tanzania to Kalemie in DRC’s Tanganyika Province through Lake Tanganyika, aimed at improving digital connectivity between the two countries.

However, in September this year, the two sides agreed to fast-track the establishment of the Joint Economic Commission (JEC) to accelerate the fiber-optic cable project across Lake Tanganyika and other projects expected to boost the economies of the two EAC member states.

The commitment was reaffirmed by the Minister for Foreign Affairs and East African Cooperation, Dr Mahmoud Thabit Kombo, during a farewell meeting with the DRC’s Ambassador to Tanzania, Jean Pierre Massala, who completed his tour of duty in the country in September this year.

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