GOT IT COVERED
The increasing importance of ICT for business and GDP comes as no surprise to Tanzania, which has been successfully overhauling the sector at home and in the region.
Tanzania's telecoms industry has over the last year gone through considerable changes in almost all aspects, including content, medium, and regulations. New laws regarding ownership of media as well as a redefined mission from the state broadcaster are paving the way for the country's telecoms and IT sector to become a regional leader in all senses.
In July 2017, the country hosted the Mobile 360 Telecom Conference in Dar es Salaam, bringing together Tanzania's major private sector and civil society players to find solutions to some of the challenges the country is facing with its telecoms industry. Tanzania faces problems such as poor connectivity and infrastructure, a lack of human capital, and budgetary constraints. Combined, these issues have made it difficult to extend telecoms service to rural areas.
Tanzania has several mobile network operators, the largest of which are Vodacom, Airtel, Tigo, and Halotel. The South African Vodacom has over 10 million subscribers in Tanzania and entered the country's market in 1999, quickly becoming the largest operator. Vodacom's GSM and GPRS coverage reach over 75% of the population, and its EDGE coverage reaches approximately 50% of the population. Airtel is the country's second-largest operator by total wireless customers, claiming some 1.7 million users, or about 26% of the market. Tigo markets itself as a lifestyle brand, offering a full range of voice, text, and high-speed internet. Tigo has some of the best coverage in the country, opening over 500 new network sites just between 2013 and 2014. Halotel, the state-owned operator of Vietnam, has invested over USD1 billion in Tanzania. It became the first company approved to lay its own fiberoptic cable in the country, and has since laid more than 18,000km of cable in 26 regions of the country. In terms of voice telecoms subscriptions, Vodacom holds 32% of the market share, Tigo has 28%, Airtel holds 26%, and Halotel claims 9%.
In July 2017, Vodacom Tanzania received approval from the capital markets regulator to extend its IPO until the end of the month, following a much-celebrated decision by the government to allow foreign nationals to buy shares on the Dar es Salaam Stock Exchange. The company is confident the extension will boost investment from internationals and hopes to be listed on the stock exchange no later than early 2H2017. The IPO began in April of the same year, when participation was restricted to Tanzanians; however, a slow uptake led the telecoms provider to extend the offering by three weeks. The July extension was Vodacom's second such extension. Local law requires Tanzanian telecoms providers to guarantee at least 25% local ownership at the IPO.
The country's third-largest operator, Airtel, was also in the midst of an IPO in July 2017. Through its IPO, the company is expected to bring in TZS25 billion, a sum considerably less than expected; considering Airtel holds a 26% subscription market share, analysts anticipated a much higher share offer, closer to its competitor's Vodacom Tanzania, which is seeking a TZS476 billion market share.
With the continued evolution of industry players, products and services are evolving in tandem. The number of mobile payments and financial transactions have been growing steadily. The country has more than 17.3 million mobile money subscriptions, with the market divided with three main players: Airtel Money, M-Pesa, and Tigo Pesa.
TBY sat down with Eric Mwenda, the CEO of Wia Group, an ICT leader in the country. “Tanzania is beginning to demonstrate and market its capacity in the industry," Mwenda said. “Today, we have incubators all over the country and a lot of young people are becoming involved in the sector. These young people are providing solutions locally, and the next challenge will be to start driving these local content applications internally and externally."
GOT IT COVERED
TABLE OF CONTENTS
Guest Speaker
Hon. Patricia Scotland, Secretary General, Commonwealth of Nations
TBY talks to Hon. Patricia Scotland, Secretary General of the Commonwealth of Nations, on the advantages of being a member of the Commonwealth, the need to celebrate diversity, and Tanzania's war against corruption.
read articleGuest Speaker
Libérat Mfumukeko, Secretary-General, East African Community (EAC)
TBY talks to Libérat Mfumukeko, Secretary-General of the East African Community (EAC), on Tanzania's importance to the EAC, the major achievements of regional integration, and obstacles ahead of a monetary union.
read articleInterview
Raymond P. Mbilinyi, Executive Secretary , Tanzania National Business Council (TNBC)
TBY talks to Raymond P. Mbilinyi, Executive Secretary of Tanzania National Business Council (TNBC), on its work to support the private sector in the country, tackling challenges in the economy, and clamping down on corruption.
read articleReview: Banking
The Quest for Depth
If Tanzania is to meet its 2025 vision of attaining middle-income status, it will need to corral its bank-centric financial and capital markets for greater depth by extending participation and rendering credit more accessible to SMEs, women, and the young to spur economic growth.
read articleInterview
Dr. Baghayo A. Saqware, Commissioner , Insurance, Tanzania Insurance Regulatory Authority (TIRA)
TBY talks to Dr. Baghayo A. Saqware, Commissioner of Insurance, Tanzania Insurance Regulatory Authority (TIRA), on achieving universal healthcare coverage, the brilliance of microinsurance, and how to partner with public and private entities to increase the industry's penetration.
read articleReview
Legal Thunder
With the stepping down of Minister of Energy and Minerals Sospeter Muhongo in May 2017 over transparency issues and the introduction of three new laws that give the government the right to renegotiate or revoke existing mining and oil and gas rights, private players in the country are unsure of what future lies ahead. On the other hand, project-specific developments bode well for a sector in need of a breakthrough.
read articleInterview
Kapuulya Musomba, Managing Director, Tanzania Petroleum Development Company (TPDC)
TBY talks to Kapuulya Musomba, Acting Managing Director of Tanzania Petroleum Development Company (TPDC), on the planned expansion of the Mtwara-Dar es Salaam natural gas pipeline, entering northern industrial hubs, and empowering nascent industries.
read articleInterview
Marc Den Hartog, Managing Director, Shell/BG Tanzania
TBY talks to Marc Den Hartog, Managing Director of Shell/BG Tanzania, on the critical need for economies of scale, the importance of developing LNG for export, and why renewables must be taken into account in any long-term plan.
read articleInterview
Hon. Charles Mwijage, Minister, Industry, Trade and Investment
TBY talks to Hon. Charles Mwijage, Minister of Industry, Trade and Investment, on how to reach middle-income status, employing the private sector toward this end, and what sets the country apart from the rest of East Africa.
read articleFocus: Helium
Discoveries of Magna-tude
Despite being the second most common element in the universe, helium is in short supply on earth. With global reserves of the gas steadily dwindling, and demand steadily increasing, the discovery of a whopping 1.53 billion cbm of helium in underground chambers in Tanzania could not have come at a better moment.
read articleInterview
Gilliard W. Ngewe, Director General, Surface and Marine Transport Regulatory Agency (SUMATRA)
TBY talks to Gilliard W. Ngewe, Director General of Surface and Marine Transport Regulatory Agency (SUMATRA), on transportation budget allocation and cross-sector dialog and partnerships.
read articleInterview
Jared H. Zerbe, CEO, Tanzania International Container Terminal Services Limited (TICTS)
TBY talks to Jared H. Zerbe, CEO of Tanzania International Container Terminal Services Limited (TICTS), on regional trade flows and Tanzania's potential to take a leading role in orchestrating cargo movement.
read articleFocus: Tanzania Strategic Cities Project (TSCP)
East Africa’s “Geneva”
If Rome wasn't built in a day, it is not surprising that Tanzania's project to revamp eight of its largest cities is entering its eighth year of implementation. A release of further funds from the World Bank has given the project a new lease of life.
read articleReview
Lost in the Maize
Agriculture accounts for 30% of Tanzania's GDP, and the sector has experienced above-average output in recent years compared to the rest of the African continent. However, the sector's development is held back by poor rural farming practices and general infrastructure bottlenecks.
read articleInterview
Fred Kafeero, Tanzania Representative, Food and Agriculture Organization (FAO)
TBY talks to Fred Kafeero, Tanzania Representative of the Food and Agriculture Organization (FAO), on the organization's long-term support for Tanzania's development, recent initiatives in agriculture, and financing.
read articleFocus: 2020 Irrigation Target
Reap What You Sow
In 2006, the Tanzanian Ministry of Water and Irrigation set a target for Tanzania's agriculture sector: to irrigate 1 million ha of land by 2020. More than 10 years on and moving ever closer to the deadline, this target has not yet been met, though the first seeds are being sown.
read articleFocus: Southern Circuit Tourism
Hidden Gems
Tourism is frequently described as the jewel in Tanzania's economic crown. In 2016 alone, the industry contributed over USD2 billion in revenues. However, for at least three years, the government has expressed concern that tourism is not well distributed across the country.
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