BUSINESS is booming online all over the world and digital economy is the new thing. Those who are yet to transition to this new normal are losing big time. Aren’t they?

Like other developing countries, Tanzania is undergoing digital transformation as reflected in the growing number of people connected to communication devices and internet services.

Director of External Affairs at Vodacom Tanzania Foundation Rosalynn Mworia says digital transformation is key to a nation’s digital economy because among others, it improves efficiency and ease of doing business, reduces the cost of doing business, cuts time in service delivery, improves convenience of accessing services and eases reach to consumers.

Mworia was speaking during a Policy Forum Breakfast held month to disseminate findings of a study entitled ‘Tanzania digital transformation journey: What is the contribution to economic growth and social development?’

According to her, currently mobile services are at the center of Tanzania’s digital transformation, whereby more than 50 per cent of the population is subscribed to a mobile service which is not the case with other communication technologies.

She further noted that mobile connectivity in Tanzania has enormous positive impact on agriculture and health. On agriculture, the study found that users of value-added services pilot were 39 per cent more likely to report increased income in a given year than those who did not.

The service used unstructured supplementary service data (USSD), push SMS subscriptions, interactive voice response (IVR) and helpline to provide farmers with market information, weather forecasts, and agronomic advice on 10 strategic crops.

The study also found that switching to bulk mobile money payments from individual cash payments led to efficiencies and cost savings for traders and exporters of agricultural produce and products.

Farmers could receive loans and payments directly via their mobile phones, saving travel time and cost to collect cash payments. It is estimated that 300 farmers saved about USD 8000 and 6000 hours.

On health, Mworia said that through digital transformation there has been an improvement in nutrition awareness and tremendous improvement on eating habits.

In Tanzania, text messaging services on topics such as healthy pregnancy and healthy baby have greatly improved nutrition of newborns by providing mothers with informat5ion on child development, best practices as well as reminders on essential healthcare services.

The survey found that 73 per cent of experienced service users implement appropriate breastfeeding practices compared to 64 per cent of non-users. She said that although 48 per cent of Tanzanians is covered by mobile internet, most do not use it hence usage gap!

She said the barriers to using mobile internet include affordability, lack of awareness, illiteracy and lack of digital skills. By increasing the cost of mobile connectivity, sector-specific taxes such as excise duties on mobile services deter the adoption and use of mobile services for low-income people especially. In turn, it limits the positive impact of mobile services on the economy and society.

Andrew Mahiga, Director of Policy, Research, Advocacy and Lobbying Tanzania Private Sector Foundation (TPSF) said there is need for the government and members of the private sector to make joint efforts as a way of easily moving forward with Tanzania’s digital transformation agenda.

“Everyone has a role to play in digital transformation for the benefit of the entire nation. We shouldn’t wait for laws, policies, but advise wisely to enable this sector to grow,” he said.

Mahiga said that the sector touches almost every other sector, making it very important to sectors like agriculture, health and education.

TIGO Tanzania’s Chief Officer, Angalica Tesha said that technology in Tanzania today is revolutionizing the economy and creating a host of job opportunities for the nation’s youth.

Mobile money and internet-based transactions, for example, have changed the financial sector, empowered women and small retailers and transformed the education system, she said.

Dr Gasper Balthazary Consultant on trade facilitation at the University of Dar es Salaam, said that there is limited skills in digital entrepreneurship and e-commerce, thus, making it necessary to invest in capacity building.

He advised the government and other key players to put in place an enabling regulatory environment for e-commerce development which is key for building trust among users.

Mteganda Hussein, a participant, called for the review and rewriting of Tanzania’s ICT policies so that they conform to the current situation.

Former Minister for Communications and Information Technology Dr Faustine Ndugulile, was recently quoted as saying; “The digital transformation is one of the government’s agenda as it is included in the Tanzania Development Vision 2025 and in the ruling party’s manifesto.”

He further noted that the government intends to increase broadband reach from 40 per cent to 80 per cent, improve digital literacy nationwide, enable affordability of digital services and review the industry’s legal and regulatory framework as part of its ICT priorities.

In a bigger picture; Africa’s digital ambitions include to create an integrated and inclusive society and an economy that improves the quality of life for its citizens.

It also envisages investing in digital infrastructure, savvy workforce, e-commerce platforms, financial services and an ecosystem that encourages digital entrepreneurship.

But there is digital divide which is widening and threatening inclusion for all.

“We’re lagging on the digital front, internet penetration, quality and affordability are low compared to the rest of the world,” reads the vision.

“COVID-19 has massively impacted African economies, and has further exacerbated these digital divides.”

There is hope because the youth are driving digital transformation. Young Africans are capitalizing on new technologies to launch startups and to find solutions to the continent’s problems.

The challenge for Africa is providing its youth with the knowledge and skills needed for the emerging world of work. The growth of digital tech, mainly driven by the mobile revolution has been one of the bright spots for Africa’s development.

Driving socio-economic: transformation, increasing efficient production and distribution of goods and services, opening new opportunities for income generation, enhancing connectivity between people, societies and organizations.

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