Tanzania’s digital economy on track as internet penetration soars to 85pc

Speaking on the sector’s performance, TCRA director general Jabir Bakari said the rise in internet penetration highlights the impact of sustained policy and infrastructure investments.

“Improved connectivity is expanding access to information, supporting innovation, and enabling more citizens to participate meaningfully in economic activities,” he said.

Mobile broadband remains the leading means of access, accounting for 32.7 million subscriptions, or 56 percent of total connections.

Meanwhile, 2G technology continues to serve 24.9 million users, particularly in rural and low-income areas. Fibre-based internet is still limited, with FTTH and FTTO subscriptions at 123,052 and 16,265 respectively, pointing to opportunities for high-speed fixed broadband expansion.

Overall telecommunications subscriptions rose 7.7 percent, from 99.3 million in September to 106.9 million in December, while data traffic increased 9.5 percent, from 738 to 808 petabytes, reflecting higher consumption of online services, applications, and digital content.

Device ownership is also on the rise. Smartphone penetration reached 41.82 percent, up from 39.53 percent, while feature phone ownership climbed to 87.11 percent. Modems, tablets and computers also saw gradual adoption, supporting wider access to digital services.

Dar es Salaam remains the country’s largest telecom market, with 19.68 million active subscriptions, though growth is being observed across other regions as network coverage expands.

Infrastructure investment has accelerated mobile network rollouts, with the number of telecom towers increasing from 9,745 to 10,029, and 5G population coverage rising from 28.9 percent to 30.1 percent.

The report, aligned with International Telecommunication Union (ITU) standards, provides detailed statistics for telecommunications, internet, broadcasting, postal and courier services, offering a comprehensive view of sector performance.

Commenting on the report, Chief Operating Officer of Serengeti Byte Michael Mallya said the milestone signals that Tanzania has firmly entered the digital society era.

“For content creators, audiences, brands, and institutions are online, opening opportunities in video, podcasts, education, entertainment and local-language storytelling. Creators can now reach regional and global markets, monetising through brand partnerships, advertising and subscriptions,” he said.

He added that businesses, particularly SMEs, are increasingly adopting digital platforms to reach customers efficiently.

“Challenges remain, digital literacy gaps, data costs, online trust, and rural connectivity, but addressing these through skills training, secure payments, and infrastructure investment will convert connectivity into sustainable economic growth,” he noted.

Students are also benefiting. Student at Dar es Salaam Institute of Technology HappyGod Emmanuel said the internet has become “our classroom, library and workspace.” He explained that online access allows students to learn coding, access research materials, collaborate on projects, and build portfolios even before graduation.

“The internet enables us to turn ideas into solutions without waiting for traditional systems,” he said.

Dr Bakari emphasised that the communications sector’s resilience and growth underpin Tanzania’s broader Dira 2050 vision and the ambition to become a $1 trillion economy, positioning the country as a leading digital economy hub in East Africa.