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News Analysis: Tanzania achieves remarkable development in ICT

Xinhua, May 18, 2016 Adjust font size:

Tanzania has achieved remarkable development in Information and Communication Technology (ICT), becoming the first country in Africa where mobile phone companies have agreed to shared money transactions (interoperability).

Through the system, mobile phone owners can send money to any mobile phone company at reduced cost, making Tanzania lead other countries in mobile money banking with an average of 4.5 trillion Tanzanian shillings (2.2 billion U.S. dollars) in transaction per month.

According to the Global microsope, Tanzania is ranked sixth among 55 countries in Africa with good environment for mobile money transactions.

Development of National ICT broadband backbone (NICTBB) in the East African nation has also caused major boost to economic growth, reduced cost of communication from 20,000 dollars per month in over 1,000 km to 160 dollars per month, being 99 percent reduction.

It has also reduced cost for final end users from 0.06 dollars per minute in 2009 to 0.03 dollars per minute in 2013 as well as reduced internet cost from 16.45 dollars per gigabyte in 2009 to 4.11 dollars per gigabyte in 2013.

The revelation was made by the deputy minister for Works, Infrastructure and Communication, Edwin Ngonyani during the launch of the National ICT Policy 2016 here.

He said interconnection fees have also reduced 0.05 dollars per minute in 2007 to 0.02 dollars per minute in 2013.

"Other developments include ability to connect many citizens with communication through ICT, acknowledgement of ICT experts and establishment ICT departments in various government department." he noted.

According to the deputy minister, the new policy which is the improved version of the 2003 policy now open room for new development of ICT in the country, calling on all stakeholders to exploit opportunities in the sector.

Mr Ngonyani also noted that the ICT sector is one of the key pillars in national economic growth as it has direct contribution as well as through other sectors.

Other stakeholders who spoke during the launch praised the government for the bold step, saying it will open up ICT investments in the country.

Embassy of Finland in Dar es Salaam's counselor for Economic Growth, Oskar Kass said access to information is a very important right to every citizen, thus the new policy should focus on that.

"ICT open up new business opportunities and development for people especially youths with innovative minds" he said, adding that Tanzania has a growing technology with many youths trying use technology to create new things

He commended the government for giving helping hand to private sector to bring ICT services at affordable cost but there is need to have local content. Kass added that the new policy will bring more innovation and more investments.

Representing the Tanzania Private Sector Foundation (TPSF), Louise Acaro noted that the new policy will offer guidelines to private sector investors in ICT.

"In the past there were no official guidelines for investment in ICT, causing a lot of problems and confusion for local investors who eyed investing in the sector," he said.

He urged members of the private sector to take time and read the policy in readiness to tap any opportunities for investment in the sector. Endit