Driving economic growth through affordable youth connectivity

ByDinesh Balsingh

In the dynamic landscape of Tanzania’s telecommunications sector, the transformative power of technology in shaping socio-economic landscapes cannot be overstated. Telecommunication stands as the bedrock of innovation, fostering economic prosperity, and driving societal advancement. Mobile money services, in particular, have emerged as the cornerstone of financial inclusion, democratizing access to formal financial services for 72 percent of Tanzanians.

Despite commendable strides, challenges persist, notably the burden of taxation & levies hindering affordability and slowing down digital adoption. It’s a critical juncture that continues to demand visionary leadership and strategic foresight to overcome these obstacles.

The policy reforms that resulted in removal of Mobile Money transaction levy, airtime levy and the reduction in Right of Way charges, effective from July 2023 are accelerating the growth of the Telecommunication sector especially on expansion of fiber coverage across Tanzania. Reforms in the sector signifies the commitment our leaders have, coupled with improvements in cybersecurity and data protection, all these developments mark significant milestones toward realizing a digitally inclusive society. The growth trajectory aligns with Tanzania’s ambitious development plan, aiming to increase internet users and double the communication sector’s contribution to GDP by 2026.

As the country experiences robust economic growth, with the World Bank projecting a substantial Gross Domestic Product (GDP) growth rate of 5.6 percent this year and a long-term potential of around six percent growth rate by 2025, the telecommunications sector players hold an integral role to play in the projected economy’s growth.

Tanzania’s youthful population is growing rapidly, making it a significant demographic force, with 50 percent of the country’s estimated 60 million people under 18 and more than 70 percent under 30. Most of this population owns smartphones, and the use cases would increase as they get employed or employ themselves as some start their entrepreneurial journey. Our brand promise is to provide quality products and services that are convenient, reliable and affordable to this growing customer base.

Airtel Tanzania’s strategic investments in network expansion and service enhancement aim to democratise access to technology and catalyze socio-economic progress. Through partnerships and initiatives like subsidized site constructions through UCSAF and international fiber connectivity such as the 2Africa cable, Airtel Tanzania leads the charge towards digital empowerment. Investments in digital literacy and access to smart devices further aim to bridge the digital divide, ensuring ICT benefits are accessible to all Tanzanians.

One point that stands out for me from the recently released report by Tanzania Communications Authority (TCRA) for the third quarter of the financial year 2023/2024 is the increased use of voice calls. The report establishes that in general, more voice minutes were spent on on-net calls which accounted for 53 percent compared to off-net calls (47 percent), indicating customers’ preference for calling within the same network, building a strong, connected community.

This is not only a steadfast testament to the affordability of the products and services but also improved quality of the services.

The TCRA statistics report indicates that Airtel's call quality of service hold the first position with a score of 97.2 percent.

As a service provider, our role becomes increasingly pivotal in supporting businesses to propel job creation, foster innovation, and contribute to tax revenue. It is even interesting to witness a crucial demography of Tanzania’s population, young people, using voice calls as well as data. The youth will play a significant role in the growth of the country’s economy.

The subsidized site construction partnership with UCSAF has seen Airtel Tanzania recently commercially launch 34 new towers as part of a contract with mobile telecom companies to build 758 towers across 713 wards in the country. Our company was responsible for 217 towers and has completed over 75 towers. I believe we are the first telecom company in the country to finish and operate towers under the contract.

We believe that continued collaboration and visionary policymaking are essential to unlock the full potential of the ICT sector. Bold initiatives such as VAT exemptions on smart devices are crucial to bridging the gap between infrastructure and utilisation.

Addressing barriers like the cost of acquiring smartphones is essential for ensuring that advancements in digital infrastructure translate into tangible benefits for the population.

As we embark on this journey of thought leadership and collaboration, let us pave the way for a future where technology serves as a catalyst for equitable growth and prosperity. Together, through dialogue and innovation, we can create a digitally inclusive society where opportunities abound for every Tanzanian.

Dinesh Balsingh is the managing director of Airtel Tanzania