Sunday, August 25

Tanzania’s telecoms sector can contribute to her industrialization agenda


By John Nangi (UCC, UDSM)

It is well-known that the Government is striving to drive the country towards its goal of becoming a semi-industrialised, middle income country by 2025.

Within this, a specific
priority area is fostering economic growth and industrialisation across the
country and envisages an important role for the private sector in driving the
country towards this.

To date, the private sector
has already proven its credentials when it comes to its contribution to the
economy. Taking one of the country’s major sectors – telecommunications – as an
example, it is easy to see the economic benefits.

In 2016 alone, the economic
contribution of the mobile industry was $2.5 billion. This is set to rise to
more than $4 billion by 2020 – accounting for more than 6 per cent of
Tanzania’s GDP[A1] .

If we want to guarantee and
support this added value, it is essential the right market conditions are

Currently we have eight telecommunications
firms operating in Tanzania. While more may seem better, sadly the opposite is
the case for the telecommunications sector.

Reducing the number of
companies will encourage greater investment into the sector, which subsequently
improves the customer experience.

By merging two companies
together, current customers of either will be able to use the services provided
by both. Customers will therefore get better value for money, with access to a
broader and stronger network.

Encouraging the consolidation
of the sector, by merging two operators, would bring about tangible benefits
and allow the sector to continue providing and developing the high-quality
services we are becoming accustomed to.



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