Overview
Tanzania’s Information and Communication Technology (ICT) sector is experiencing significant growth, positioning it as a key driver of the nation’s economic development. The Tanzanian government has prioritized the expansion of the digital infrastructure to support this growth. It launched the 2Africa subsea cable in August 2023, enhancing the country’s connectivity by interlinking Europe, Africa, and Asia. Additionally, the National ICT Broadband Backbone (NICTBB) continues to improve internet speed and accessibility nationwide.
Efforts to expand mobile broadband coverage have yielded positive results. By the end of 2025, 3G network coverage reached 85.7% of the population, while 4G coverage was projected at 26.16%. Supported by the World Bank, the Digital Tanzania Project aims to enhance the digital economy by increasing access to high-quality internet services and improving the government’s capacity to deliver digital public services.
Tanzania’s telecommunications sector remains highly competitive, with multiple service providers obtaining licenses and establishing operations. Mobile money services, such as M-Pesa, have revolutionized financial transactions, driving financial inclusion and transforming the economic landscape.
The rise of tech startups and innovation hubs across the country reflects a burgeoning entrepreneurial spirit. Government initiatives, including the National ICT Policy and investments in fiber optic connectivity, have bolstered digital accessibility and spurred growth in sectors like healthcare, agriculture, and education.
Despite these advancements, challenges persist. The digital divide remains pronounced, with urban areas benefiting more from ICT developments than rural regions. Barriers to digital adoption include the high cost of internet-enabled devices, low levels of digital literacy, concerns over online privacy, and inadequate infrastructure such as electricity. Additionally, Small and Medium-sized Enterprises (SMEs) and government personnel often lack familiarity with digital technologies, hindering the effective delivery of e-government services.
Opportunities for U.S. companies
• 5G infrastructure, Open RAN, and private networks
• Cloud & data center development
• Cybersecurity platforms and SOC services
• AI solutions for logistics, agriculture, finance, and health
• Enterprise software (ERP, CRM, HRM)
• Fintech infrastructure (fraud, credit scoring, boundaries & compliance)
• IoT devices for energy, mining, and utilities