Digital economy ‘to contribute $1bn to Tanzania’s GDP by 2034’

The conference, under the ICT Commission, comes at a critical moment as Tanzania begins implementing its 10-year Digital Economy Strategic Framework (2024–2034), which positions information and communication technology (ICT) as a catalyst for productivity across all sectors, including agriculture, health, finance, education and industry.

The framework sets out ambitious numerical targets aimed at accelerating digital adoption and increasing the sector’s contribution to the national economy.

Over the full 10-year period to 2034, the digital economy is expected to generate more than $1.1 billion in GDP, reinforcing its role as a key growth engine aligned with Tanzania’s development visions.

Also, at the centre of the strategy is the goal of doubling the ICT sector’s contribution to gross domestic product to three percent by 2029, up from about 1.5 percent in 2022/23.

Opening the conference, the minister for Communication and Information Technology, Ms Angellah Kairuki, said digital transformation was no longer optional but a necessity if Tanzania is to achieve inclusive and sustainable development.

“Digital transformation is an unavoidable requirement. It must be fair, inclusive and designed to leave no one behind, while creating jobs for youth and women and strengthening national self-reliance,” she said.

That is why, she noted, collaboration between the public and private sectors is critical if, “we are to deliver on these targets on time.”

Available efforts

To support this shift, government efforts over recent years have focused heavily on expanding digital infrastructure nationwide.

According to the ministry, by December 2025 a total of 758 communication towers had been constructed and switched on, extending connectivity to previously unserved areas, while 304 towers were upgraded from 2G to 3G and 4G.

In addition, about 660 public institutions have already been connected to high-speed internet, with a target of reaching at least 900 service points nationwide.

These investments are intended to support the strategy’s target of achieving 80 percent broadband and internet user penetration by 2029. Experts at the conference agreed that broadband expansion remains the foundation of a functional digital economy.

The Director General of the ICT Commission, Dr Nkundwe Mwasaga, said reliable and affordable internet is what enables innovation hubs, e-government services and digital businesses to flourish.

“Without connectivity, the digital economy remains a concept. With it, we unlock efficiency, transparency and new markets,” Dr Mwasaga said. He added that Tanzania has already put in place close to 95 percent of the required digital infrastructure, shifting the focus from building networks to driving innovation, skills and service delivery.

“We are now at a stage where we are opening doors for Tanzanian innovators to establish solutions that can drive the national economy while improving the livelihoods of young people,” he said.

Beyond infrastructure, the framework places strong emphasis on skills and innovation.

The government aims to achieve 90 percent digital literacy among citizens by 2029, recognising digital skills as a basic requirement for participation in modern economic life.

In the education sector alone, the strategy targets the training of 80,000 teachers in digital competencies by 2028.

At the same time, the framework seeks to deepen financial inclusion through technology, with mobile money penetration targeted to exceed 70 percent nationwide.

Innovation hubs are being established in all regions to nurture startups, with the goal of supporting the creation of at least 1,000 new startups over the next five years.

Through public-private partnerships, private investors are increasingly involved in data centres, fintech platforms and digital public services. Ms Kairuki said startups are clearly recognised as key drivers of growth.

“Young innovators have the potential to create jobs rather than wait for employment. Our role is to build a supportive policy, financial and institutional environment,” she said. At the exhibition area, youth-led startups showcased digital solutions in agriculture, health, education and climate resilience.

A software developer from Dodoma, Ms Jane Michael, said access to innovation hubs and government-backed programmes had reduced entry barriers, but more support was needed.

“What we need now is faster access to capital and opportunities through public procurement,” she said. While launching the digital economy strategy in 2024, President Samia Suluhu Hassan underscored Tanzania’s determination to adapt and lead in the digital age.

“The time for change is upon us, and we must capitalise on our national strengths to chart a course toward new horizons,” she said.

As such, the minister directed the commission to strengthen support frameworks so local digital products can compete regionally and globally, while safeguarding cybersecurity and the ethical use of emerging technologies such as artificial intelligence.