Tanzania’s 117 million telecom subscriptions signal a remarkable expansion in digital connectivity. But having more people connected is only part of the equation. The bigger question is whether those connections are helping people earn more, build businesses and participate more fully in the digital economy.
Data from the Tanzania Communications Regulatory Authority (TCRA) shows that total subscriptions increased by 4.51 per cent to 111.9 million in March. Internet subscriptions also continued to grow, reaching 62.79 million, while data usage climbed from 932 petabytes to 1,041 petabytes during the quarter.
The figures show that more Tanzanians are getting connected, but access does not always mean people are using these services for productive activities. Smartphone penetration increased from 42.50 per cent to 44.74 per cent, while mobile broadband subscriptions reached 37.57 million. However, 24.62 million subscriptions are still on 2G networks, limiting access to many digital services and opportunities available through faster networks.
Mobile money remains a major part of Tanzania’s digital economy, with accounts reaching 87.05 million. Meanwhile, 5G population coverage increased to 34.18 per cent, signalling continued investment in next-generation connectivity.
However, connectivity alone does not guarantee economic inclusion. Economist Gilbert Mwabeza of Marian University College in Bagamoyo argues that Tanzania still has a long way to go before large sections of the population are using digital networks to generate income and compete in international markets. Much of the current activity remains focused on social media and communication rather than business development, digital services and cross-border trade.
For small businesses and farmers, the opportunity is significant. A farmer in Mbeya, for example, could use online platforms to compare prices, connect directly with buyers and reduce reliance on intermediaries. But that requires more than a mobile connection. Affordable smartphones, reliable internet access, digital skills and relevant online services are equally important.
Tanzania’s challenge now goes beyond expanding internet access. The bigger task is ensuring people and businesses can turn connectivity into real opportunities. The country’s Digital Economy Strategic Framework 2024–2034 sets out this ambition, but delivering on it will depend on investment and effective execution.
For Tanzania, the next stage of digital development should focus less on how many people are connected and more on what those connections enable. The real measure of progress will be whether digital access helps businesses grow, creates jobs, improves household incomes and gives citizens greater opportunities to participate in the wider economy.
