ICT & Digital Services Investment in Tanzania

Overview

Tanzania’s ICT and digital services sector is undergoing a transformative boom, positioning the country as one of Africa’s fastest-growing digital economies. With over 90 million registered mobile phone lines as of April 2025—a 22.9% increase from the previous year—and internet users surging by 32.3% to 49.3 million, Tanzania is rapidly expanding digital connectivity and adoption. This growth is supported by the government’s ambitious Ten-Year Digital Economy Strategy (2024-2034), which aims to integrate ICT deeply into all aspects of society and the economy, fostering innovation, inclusion, and sustainable development.

Strategic Importance and Growth Potential

Tanzania’s digital transformation is driven by:

  • Expanding mobile and internet infrastructure: By April 2025, 109 out of 139 districts are connected to the National Communication Backbone, with ongoing submarine and terrestrial infrastructure projects.
  • Increasing mobile broadband coverage, which rose from 72% in 2022 to 83% in 2023, alongside widespread 4G coverage (88%) and emerging 5G networks (20% coverage).
  • Rapid growth in mobile money users, now at 66.5 million, reflecting the sector’s critical role in financial inclusion and digital commerce.
  • A competitive ICT market with 136 providers offering diverse digital and value-added services, up 11.5% from the previous year.


    • The ICT sector’s revenue is forecasted to grow at a compound annual growth rate (CAGR) of nearly 10% through 2029, reaching over $900 million, while digital commerce transaction values are expected to surge at 27.6% annually, hitting $7.15 billion by 2029.

    Investment Opportunities

  • Telecommunications Infrastructure: Expansion and upgrade of mobile networks, fiber optic cables, data centers, and satellite communications to enhance connectivity and coverage.
  • Digital Financial Services (Fintech): Development of mobile money platforms, digital wallets, payment gateways, and blockchain-based financial solutions to serve Tanzania’s large unbanked population.
  • Software Development and IT Services: Opportunities in custom software, enterprise solutions, cloud computing, cybersecurity, and AI-driven applications.
  • E-Commerce and Digital Marketplaces: Platforms connecting consumers and businesses, leveraging rising internet penetration and mobile usage.
  • Digital Content and Media: Growth in digital advertising, streaming services, gaming, and educational platforms.
  • Smart City and IoT Solutions: Investments in urban digital infrastructure, smart grids, traffic management, and public safety systems.
  • ICT Skills Development and Training: Establishment of innovation hubs, coding academies, and digital literacy programs to build a skilled workforce.

    • Why Partner with Vuka Labs?

    Investing in Tanzania’s ICT sector requires navigating a dynamic regulatory environment, identifying high-potential opportunities, and building local partnerships. Vuka Labs offers:

  • Comprehensive Market Insights: We provide up-to-date data on digital trends, user demographics, and sector forecasts to inform your investment strategy.
  • Regulatory Navigation: Expertise in Tanzania’s ICT policies, licensing procedures, and compliance requirements ensures smooth market entry.
  • Local Partnerships: We connect you with telecom operators, fintech innovators, government agencies, and technology hubs.
  • Project Facilitation: From feasibility studies to operational setup, we support your investment journey end-to-end.
  • Access to Incentives: Guidance on leveraging government programs, tax breaks, and digital economy initiatives.
  • Sustainability and Inclusion Focus: We help align your projects with Tanzania’s digital inclusion goals, maximizing social impact and market reach.

    • Government Support and Incentives

    • Tax exemptions on ICT equipment and software imports.
    • VAT exemptions and accelerated depreciation for ICT investments.
    • Support from the Tanzania Investment Centre (TIC) and Ministry of Information, Communication and Information Technology.
    • Implementation of the National ICT Policy and Digital Economy Strategy providing a clear roadmap for sector growth.
    • Public-private partnerships to foster innovation and infrastructure development.

    Economic and Social Impact

    • ICT sector growth contributes significantly to GDP and employment.
    • Digital financial services have expanded financial inclusion, with over 66 million mobile money users.
    • Enhanced connectivity supports other sectors such as agriculture, health, education, and manufacturing.
    • Digital transformation improves government service delivery, tax collection, and citizen engagement.
    • The sector fosters entrepreneurship and innovation, particularly among youth and women.

    Call to Action

    Partner with Vuka Labs to unlock Tanzania’s booming ICT and digital services market. From regulatory guidance and market entry to partnership facilitation and operational support, we are your trusted ally in building successful digital ventures in Tanzania.

    Contact Our Team