Tanzania’s digital economy is gaining strong momentum as internet penetration across the country has climbed to 85 percent, marking a major milestone in the government’s drive toward a digitally inclusive and innovation-led economy.
The rapid growth in internet access is being attributed to sustained investments in telecommunications infrastructure, expanding mobile broadband coverage, and increased affordability of smartphones and data services. These developments have significantly widened access to digital platforms for businesses, consumers, and public institutions alike.
According to industry stakeholders, the surge in connectivity is reshaping key sectors of the economy, including finance, trade, education, health, and media, while creating new opportunities for startups and small enterprises to reach wider markets through digital platforms.
Government initiatives promoting digital transformation, such as e-government services, digital payments, and online business registration, have also played a central role in accelerating internet adoption. Mobile money services, in particular, continue to drive financial inclusion by enabling millions of Tanzanians to participate in the formal economy.
The improved digital landscape has strengthened Tanzania’s position within the regional digital economy, supporting cross-border trade, remote work, and technology-driven entrepreneurship. Analysts say the rising penetration rate signals growing investor confidence and provides a strong foundation for innovation, job creation, and productivity growth.
However, experts caution that while access has improved, challenges remain in ensuring quality of service, cybersecurity, digital skills development, and rural connectivity. Addressing these gaps will be critical to sustaining growth and ensuring that the benefits of digitalisation are shared equitably across the country.
As Tanzania continues to expand its digital infrastructure and regulatory framework, stakeholders remain optimistic that the country is on track to fully harness the economic and social benefits of a connected society.
