Tanzania Investment and Consultant Group Ltd

| Economic Research Centre

Advancing Tanzania's Digital Economy
August 29, 2024  
ICT Development in Tanzania - Position in East Africa and Africa Summary of Tanzania's Position: ICT Development Index (IDI) 2024 provides key insights into the state of Tanzania's digital economy development Tanzania's digital economy is on a path of growth, but it needs targeted interventions to overcome its current limitations. By addressing these challenges, Tanzania […]

ICT Development in Tanzania - Position in East Africa and Africa

  1. Overall IDI Score for Tanzania (2024):
    • Score: 43.1 out of 100.
    • Rank within Africa: Tanzania has an IDI score of 43.1, placing it towards the middle of the range for African countries. Africa's IDI scores range significantly, with some countries scoring as low as 21.3 and others reaching up to 84.7.
  2. Comparison with Other East African Countries:
    • Kenya: With an IDI score of 58.5, Kenya outperforms Tanzania significantly in terms of ICT development.
    • Uganda: Uganda, with a score of 40.4, is slightly behind Tanzania but still within a similar range.
    • Rwanda: Rwanda has made significant strides with an IDI score of 46.8, placing it slightly above Tanzania in the region.
    • Burundi: At the lower end, Burundi has a much lower IDI score of 24.4, indicating it lags behind Tanzania and other East African nations.
  3. Africa-wide Comparison:
    • South Africa: One of the leading countries in Africa in terms of ICT, with an IDI score of 83.6, showing advanced ICT infrastructure and usage.
    • Nigeria: A major economy in Africa, Nigeria has an IDI score of 46.9, which is higher than Tanzania but still not among the top performers.
    • Egypt: With an IDI score of 76.8, Egypt is among the higher-ranked countries in Africa.
    • Ethiopia: Ethiopia scores significantly lower at 39.8, reflecting the challenges it faces in ICT development compared to Tanzania.

Summary of Tanzania's Position:

  • Within East Africa: Tanzania is positioned in the middle, with Rwanda and Kenya performing better in ICT development, while Uganda and Burundi lag slightly behind.
  • Within Africa: Tanzania’s ICT score is moderate. While it does better than some countries like Ethiopia and Burundi, it remains far behind leading African nations like South Africa and Egypt.

ICT Development Index (IDI) 2024 provides key insights into the state of Tanzania's digital economy development

Tanzania's digital economy is on a path of growth, but it needs targeted interventions to overcome its current limitations. By addressing these challenges, Tanzania can move closer to realizing the full potential of its digital economy, aligning itself with regional leaders and contributing to broader economic development.

  1. Moderate Progress in Digital Infrastructure and Connectivity
  • Tanzania's IDI score of 43.1 suggests that while the country has made progress in digital infrastructure, it still faces significant challenges in achieving widespread and effective digital connectivity.
  • The gap between Tanzania and higher-performing East African countries like Kenya (58.5) and Rwanda (46.8) indicates that there is still substantial room for improvement, particularly in expanding access to digital services and infrastructure.
  1. Relative Position in East Africa
  • Within East Africa, Tanzania's position is middle-tier. It is ahead of countries like Uganda (40.4) and Burundi (24.4) but lags behind Rwanda and Kenya. This suggests that while Tanzania is making strides in its digital economy, it is not yet a leader in the region.
  • The higher scores of Rwanda and Kenya reflect better access to digital infrastructure, more effective digital policy implementation, and possibly greater adoption of digital services among their populations. Tanzania can look to these countries for best practices in driving digital economy growth.
  1. Challenges in Universal Connectivity
  • The gap between Tanzania’s score and those of more developed African countries like South Africa (83.6) highlights the challenges Tanzania faces in achieving universal and meaningful connectivity.
  • These challenges may include insufficient infrastructure in rural areas, limited access to affordable and reliable internet services, and a lower rate of digital literacy, which are essential for a thriving digital economy.
  1. Opportunities for Growth
  • Tanzania’s current standing offers significant opportunities for growth. By improving infrastructure, expanding internet access, and investing in digital skills development, Tanzania can enhance its digital economy.
  • There is also an opportunity to leverage regional cooperation within East Africa, adopting successful policies from neighboring countries and collaborating on regional digital initiatives.
  1. Impact on the Digital Economy
  • The moderate IDI score reflects a digital economy that is still in its developing stages. While there is a foundation, more needs to be done to harness the full potential of digital technologies in driving economic growth, improving public services, and enhancing overall quality of life.
  • To boost its digital economy, Tanzania will need to address the digital divide, ensure that digital infrastructure reaches underserved areas, and promote the adoption of digital technologies across different sectors of the economy.
  1. Policy Implications
  • The Tanzanian government’s focus should include expanding digital infrastructure, promoting digital literacy, reducing the cost of internet access, and creating an enabling environment for digital businesses.
  • Policies that encourage innovation, investment in technology, and partnerships between public and private sectors will be crucial for accelerating the digital economy.

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