Tanzania Investment and Consultant Group Ltd

| Economic Research Centre

Digital Transmission Driving Tanzania's Economic Growth
May 21, 2024  
Number of Telecom and Mobile Money Subscriptions (2023): In 2023, Tanzania had a total of 70,290,876 telecom subscriptions, with Vodacom leading the market with 21,272,484 subscriptions, followed by Tigo with 19,698,263. Airtel had 19,146,016 subscriptions, while Hallotel and TTCL had 8,529,919 and 1,644,194 subscriptions, respectively. For mobile money subscriptions, the total stood at 52,875,129. Vodacom […]

Number of Telecom and Mobile Money Subscriptions (2023):

In 2023, Tanzania had a total of 70,290,876 telecom subscriptions, with Vodacom leading the market with 21,272,484 subscriptions, followed by Tigo with 19,698,263. Airtel had 19,146,016 subscriptions, while Hallotel and TTCL had 8,529,919 and 1,644,194 subscriptions, respectively.

For mobile money subscriptions, the total stood at 52,875,129. Vodacom led again with 20,043,178 subscriptions, followed by Tigo with 16,260,532. Airtel had 11,166,688 subscriptions, while Hallotel and TTCL had 4,034,261 and 1,370,470 subscriptions, respectively.

Trends in Subscriptions (Past Three Years):

Between 2021 and 2023, mobile subscriptions in Tanzania grew from 54,044,384 to 70,215,144, indicating a steady increase. Fixed subscriptions, on the other hand, fluctuated slightly from 71,834 in 2021 to 75,132 in 2023.

The penetration rate of mobile subscriptions also saw a notable increase, from 88% in 2021 to 111% in 2023, indicating that there were more mobile subscriptions than the total population.

Mobile Money Transactions:

The number of mobile money transactions increased significantly from 3,752,084,894 in 2021 to 5,273,086,154 in 2023. This indicates a growing reliance on mobile money services for financial transactions in Tanzania.

The number of mobile money subscriptions also saw substantial growth during this period, from 35,285,767 in 2021 to 52,875,129 in 2023, indicating an expanding user base for mobile financial services.

Internet Subscription:

Internet subscriptions in Tanzania witnessed steady growth from 29,103,482 in 2021 to 35,885,592 in 2023. This growth is indicative of increasing internet penetration and access to online services, which is crucial for information dissemination, education, and economic development.

Number of internet users in Africa as of January 2024, by country.

As of January 2024, Tanzania is among the top ten African countries with the highest number of internet users. Nigeria leads the continent with over 103 million users, followed by Egypt with more than 82 million. In these leading digital markets, the majority of web traffic, over 86.2%, comes from mobile devices, while around 13.3% is from PCs. This trend is driven by the lower cost and lesser infrastructure requirements of mobile connections compared to fixed-line internet for desktop PCs.

Looking ahead, Africa's internet user base is expected to grow significantly. From 2024 to 2029, the number of users is projected to increase by 337.3 million, marking a growth rate of 51.79%. By 2029, the continent's internet user count is anticipated to reach 1.1 billion, despite an online penetration rate of 43%, which is still below the global average of approximately 68%.

Tanzania's digital transmission and information economy:

Tanzania's progress in digital transformation and its significance for the country's information economy. It emphasizes the need for continued investment in digital infrastructure, policies, and skills development to harness the full potential of digital technologies for economic and social development.

  1. Digital Connectivity Growth: The steady increase in telecom and mobile money subscriptions over the past years, along with the rise in internet subscriptions, indicates the country's expanding digital connectivity. This growth is essential for facilitating communication, accessing information, and conducting financial transactions.
  2. Mobile Money Adoption: The significant growth in mobile money subscriptions and transactions reflects the increasing adoption of digital financial services in Tanzania. Mobile money has become a crucial aspect of the country's financial ecosystem, enabling access to banking services, promoting financial inclusion, and driving economic activity.
  3. Internet Access: The rise in internet subscriptions signifies the growing access to online services and information dissemination. Internet access plays a vital role in education, enabling e-learning opportunities, and supports economic development through e-commerce, entrepreneurship, and access to global markets.
  4. Penetration Levels: The penetration levels exceeding 100% for mobile subscriptions indicate that many Tanzanians have multiple mobile phone subscriptions, highlighting the widespread use of mobile devices for communication and accessing digital services.
  5. Information Economy: The data reflects the importance of the information economy in Tanzania's development. The increasing reliance on digital technologies for communication, financial transactions, and access to information underscores the role of the digital sector in driving economic growth and innovation.

Tanzania's digital transmission roles in driving economic growth:

Tanzania's digital transmission infrastructure plays a crucial role in driving economic growth by enhancing connectivity, promoting financial inclusion, fostering entrepreneurship and innovation, improving productivity, and facilitating access to global markets and government services.

  1. Enhanced Connectivity: The expansion of telecom subscriptions, mobile money services, and internet access improves connectivity across the country. This connectivity facilitates communication, enables access to markets, and fosters collaboration among businesses, ultimately leading to increased economic activity.
  2. Financial Inclusion: Mobile money services provide access to basic financial services for a significant portion of the population who were previously underserved by traditional banking infrastructure. This inclusion leads to greater participation in formal economic activities, savings, and investment, contributing to overall economic growth.
  3. Increased Efficiency: Digital transmission streamlines business operations, reduces transaction costs, and increases efficiency in various sectors such as finance, agriculture, and commerce. Mobile banking and online transactions enable faster and more secure payments, reducing the time and resources required for financial transactions.
  4. Entrepreneurship and Innovation: Improved connectivity and access to information through digital transmission empower entrepreneurs and innovators. They can leverage digital platforms to launch businesses, access markets, and develop new products and services tailored to local needs. This fosters entrepreneurship and stimulates innovation, driving economic growth and job creation.
  5. Access to Information and Education: Internet access and digital platforms provide access to information, education, and training opportunities, enabling individuals to acquire new skills and knowledge. This supports human capital development, improves productivity, and enhances the quality of the workforce, all of which are essential for sustained economic growth.
  6. Global Market Access: Digital transmission enables Tanzanian businesses to access global markets, expanding their reach beyond domestic borders. E-commerce platforms allow small and medium-sized enterprises (SMEs) to market their products and services internationally, increasing export opportunities and contributing to foreign exchange earnings.
  7. Government Efficiency and Service Delivery: Digital transmission facilitates e-government services, improving the efficiency of public administration and service delivery. Online platforms for tax payments, business registration, and other government services reduce bureaucracy, corruption, and transaction costs, fostering a more conducive environment for business and economic growth.

Brief overview of Tanzania's digital landscape.

Data Presentation:

Telecom and Mobile Money Subscriptions (2023)

Service

Airtel

Halotel

Tigo

TTCL

Vodacom

Total

Telecom Subscriptions

19,146,016

8,529,919

19,698,263

1,644,194

21,272,484

70,290,876

Mobile Money Subscriptions

11,166,688

4,034,261

16,260,532

1,370,470

20,043,178

52,875,129

Trends in Subscriptions (Past Three Years)

Year

Mobile Subscriptions

Fixed Subscriptions

Total

Penetration

2021

54,044,384

71,834

54,116,218

88%

2022

60,192,331

84,696

60,277,027

98%

2023

70,215,144

75,132

70,290,276

111%

Mobile Money Transactions

Year

No. of Subscription

No. of Transactions

2021

35,285,767

3,752,084,894

2022

40,953,496

4,195,899,414

2023

52,875,129

5,273,086,154

Internet Subscription


Year


No. of Internet subscriptions

2021

29,103,482

2022

31,172,544

2023

35,885,592

Source: TCRA Report 2023.

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