MOBILE OPERATORS
From investors to youth entrepreneurs, mobile operators offer a vast range of products and services to advance the country's ICT sector.
What do upcoming IPO listings mean for your company and Tanzania's technological and financial make up?
SUNIL COLASO We are doing this IPO in compliance with Tanzanian law. However, it is clear that an IPO will help improve the transparency of a business among all stakeholders, as well as raise capital for continued investments in an industry that requires significant investment over time. More importantly, local Tanzanians have an opportunity to participate in the growth and progress of the company. The news that the IPO will be opened up to international individuals and companies is also a positive development. The move will open up Dar es Salaam Stock Exchange (DSE) to the world by bringing in more players and making it a more active and dynamic stock exchange.
IAN FERRAO From a financial point of view, the listings will be transformational for DSE, adding a significant amount of market capitalization. Vodacom has been present at various roadshows in the region, and this brings more visibility to DSE, which will hopefully go a long way toward improving the liquidity and levels of trading volumes. This will be beneficial for all companies that are currently listed on DSE and improve the financial landscape more generally for Tanzania. From a technology point of view, our vision is to lead Tanzania into the digital age and use the latest developments to continue changing lives here. In line with this vision, we are evolving our technology at the same pace as most emerging markets. Using M-Pesa, we can turn Tanzania cashless faster than any other market.
Which global advances in communication would Tanzania benefit from taking up more rapidly or more widely?
SC Consumers here like a simple value proposition. Today, 90% of our sales are made through bundles, which take care of basic needs and ensure reliability and simplicity. Similarly, SMS is our biggest market in Tanzania, with many customers responding to SMS technology in terms of promotions. Airtel has worked with this demand, and is developing products that are easy to use and cater to this desire for reliability. According to the Tanzania Communications Regulatory Authority's (TCRA) current report on data usage, data traffic has grown from 12% to 40% from 2011 to 2016. We are investing heavily in our network to ensure we continue to provide quality data services that suit customers' growing needs.
IF We are truly missing well-developed local content. I am driving for more local Swahili apps in the market as this will rapidly drive internet penetration. We are different from surrounding markets in which English is the primary language, and apps from the outside can be quickly and easily replicated and brought to those markets. Swahili content would be extremely popular in Tanzania, and if the right people came into the market and were able to drive this, then we could have booming local content development here in-country. Vodacom is doing its bit to encourage this. We have partnerships with a number of local entrepreneurs and tech start-ups. One example is M-Paper, where we virtually distribute local newspapers, making them available for download. This partnership is starting to thrive, which has driven us to be on the lookout for more such partnerships to develop.
How are you harnessing industry developments to boost social and youth empowerment?
SC Airtel has pioneered what we call Vsomo, an educational lab for vocational training. We have partnered with the government on about 10 vocational professions. It is a mobile-based training and hence can be done at the convenience of the participant. The participant studies the theory on an app, and once he/she passes the theory, he/she can obtain a practical training certificate from a government institution. With the certificate, he/she can apply for a job or start an apprenticeship. More than 30,000 people completed the training on the app in the last year. We have also developed a program called Amsha Popo, which is a franchising model that enables young people to own a store of 10sqm. Today, we have more than 500 such stores in Tanzania, with more than half of them profitable in the first two months of opening. This is a great model to empower young people and has a massive brand impact, taking Airtel closer to the consumer.
IF Youth are incredibly important given that 35% of the population is below the age of 14. As consumers, they are coming on-stream now and will probably adopt data faster than older customers. We are focused on education, health, and financial inclusion, and have many active programs in those areas. M-Pesa allows young people to seek loans to start businesses. We use their usage history and consumer profiles to help banks vet credit and allow them to lend money to start businesses.
MOBILE OPERATORS
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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