Digital technology is transforming Tanzania’s employment landscape by expanding job opportunities, increasing business efficiency, and driving innovation. The 2025 Employment Study found that 82% of respondents believe digitalization has significantly increased employment opportunities, particularly in sectors like e-commerce, financial services, and remote work.

This article explores how digital technology is shaping employment trends, the impact of digital platforms, and the challenges and opportunities for workers in Tanzania.

Impact of Digitalization on Employment

• 82% of respondents believe digital technology has expanded job opportunities.
• 16% reported job losses due to automation replacing traditional roles.
• Only 2% stated that digitalization had no impact, showing that technology is reshaping Tanzania’s job market.

Key Ways Digital Technology is Driving Employment Growth

1. E-Commerce and Online Businesses

The rise of online marketplaces, digital payments, and mobile banking has allowed small businesses and entrepreneurs to create new jobs.

• 35% of respondents engage in e-commerce, selling goods through platforms like Facebook and Instagram.
• 29% run businesses on social media, leveraging digital advertising to reach customers.
• 25% work in online service industries, including freelance writing, web development, and virtual assistance.

2. Mobile Money and Digital Financial Services

Mobile money services like M-Pesa and Tigo Pesa have created jobs in financial technology, agency banking, and mobile payments.

• 42% of respondents reported employment growth in mobile money services.
• 34% work in fintech startups, supporting innovations in digital banking and online payments.

3. Digital Platforms for Employment Matching

Technology has improved access to job opportunities through digital job portals and remote work platforms.

• 36% of respondents use job search platforms like BrighterMonday to find formal employment.
• 32% work remotely via global platforms like Upwork and Fiverr.

4. Digital Transformation in Traditional Sectors

Technology is improving employment opportunities in agriculture, manufacturing, and retail.

• 28% of digital jobs are in agriculture, using e-farming apps for market access.
• 22% are in manufacturing, where automation increases efficiency.
• 35% work in retail, using digital payments and online stores.

Challenges in Digital Employment Growth

Despite its benefits, digital technology also presents challenges that need to be addressed.

• 44% of respondents lack affordable internet, making online job access difficult.
• 36% identified a skills gap, meaning workers need training in digital literacy.

Opportunities for Expanding Digital Employment

1. Expanding Digital Skills Training

To bridge the skills gap, more investment is needed in technical education and IT training.

• 38% of respondents want training in ICT, coding, and data analytics.
• 35% prefer digital marketing skills, which are crucial for online business growth.

2. Promoting Digital Infrastructure Development

Expanding internet coverage and reducing data costs can improve employment access.

• 45% job growth expected if internet access becomes more affordable.
• 38% increase projected if 5G networks expand to rural areas.

3. Strengthening E-Government and Digital Policy

Simplifying online business registration and tax filing can increase formal employment.

• 40% job growth expected if business registration becomes fully digital.

Conclusion and Policy Recommendations

Digital technology is a major driver of employment in Tanzania, but internet access, digital literacy, and policy support are needed to maximize its impact.

Key Recommendations:

1. Expand ICT and Digital Skills Training – Invest in coding, e-commerce, and fintech skills.
2. Lower Internet and Smartphone Costs – Provide affordable data plans and digital devices.
3. Develop Digital-Friendly Policies – Simplify online business registration and tax compliance.
4. Encourage Remote Work and Digital Startups – Create incentives for tech-based employment.

NOTE:

The research and case studies presented in this report were conducted by Tanzania Investment and Consulting Group Limited (TICGL) to analyze employment trends, macroeconomic stability, and job creation dynamics in Tanzania. The study covered a sample size of 2,500 respondents, representing diverse economic sectors and geographic regions. A mixed-methods approach was employed, integrating quantitative surveys (85%), structured interviews (10%), and focus group discussions (5%) to gather both statistical data and qualitative insights. The research was conducted across six key regions: Dar es Salaam (25% of respondents), Mwanza (18%), Arusha (15%), Dodoma (14%), Mbeya (12%), and Morogoro (16%), ensuring a balance between urban and rural employment patterns.

The findings indicate that Tanzania’s workforce is 71.8% informal (25.95 million workers) and 28.2% formal (10.17 million workers), highlighting a significant divide in job security, wages, and access to social protection. Among the 2,500 surveyed individuals, formal employment accounts for 23% (550 individuals), predominantly in government (32% of formal jobs), banking and financial services (25%), manufacturing (18%), and education and healthcare (15%). On the other hand, informal employment constitutes 49% (1,170 individuals), with key sectors including agriculture (35% of informal workers), small businesses and trade (28%), transportation (15%), and casual labor (12%). The remaining 27% (650 individuals) were unemployed, with youth unemployment (ages 18–35) reaching 33%, significantly higher than the national average of 9.2%.

Employment trends indicate that formal employment is projected to rise to 38% by 2030, driven by industrialization, digital transformation, and policy reforms. However, major barriers continue to slow the transition, including limited job availability (42%), skills mismatches (26%), and bureaucratic challenges (21%). The study also found that women make up 65% of the informal workforce, primarily due to barriers in accessing formal jobs, while 72% of youth are engaged in informal employment due to limited entry-level job opportunities.

To bridge the gap between formal and informal employment, Tanzania must focus on expanding SME growth, strengthening vocational training programs, improving access to financial services for small businesses, and reducing bureaucratic hurdles for business registration. This report emphasizes the key trends, challenges, and opportunities shaping Tanzania’s employment landscape and highlights the role of public-private partnerships, investment in digital workforce expansion, and targeted policy interventions in creating a more structured and inclusive workforce by 2030.