Telecoms

Tanzania's telecoms sector anchors the country's digital economy and financial inclusion strategy, with four licensed mobile network operators serving more than 60 million subscriptions, mobile money penetration reaching nearly 90%, and commercial 5G now live alongside an expanding National ICT Broadband Backbone covering 13,820 km of fiber.

The sector underpins Tanzania's transition to a knowledge-based economy and remains central to financial access for the majority of adults, with mobile money serving as the primary financial channel across both urban and rural areas.

Formal financial service usage reached 76% in 2023, supported by mobile platforms that have transformed person-to-person transfers, merchant payments, and government collections.

Major projects defining the sector include the National ICT Broadband Backbone (NICTBB), planned to total 16,280 km of fiber optic cable connecting all regions and districts, with 13,820 km already completed by 2025 linking all 31 mainland regions, 109 out of 139 districts, and Zanzibar.

Cross-border NICTBB connectivity extends to Zambia, Malawi, Kenya, Uganda, Rwanda, and Burundi, with procedures underway to extend the backbone to the Democratic Republic of Congo.

Commercial 5G rollout in Dar es Salaam and selected urban hubs, digital ID infrastructure through NIDA, and ICT corridor investments under FYDP IV further reinforce Tanzania's positioning as a regional digital hub, with the framework targeting near-universal broadband coverage by 2030/31.

Telecoms attracted 5 investment projects worth USD 809 million registered through TISEZA in 2024, underscoring strong investor appetite in the sector.

Internet

Internet penetration in Tanzania is expanding rapidly, driven predominantly by mobile broadband, with fixed-line subscriptions representing a marginal share of total internet access.

The National ICT Broadband Backbone (NICTBB) forms the spine of national connectivity, with 13,820 km of fiber optic cable deployed out of a planned 16,280 km, linking all 31 mainland regions, 109 out of 139 districts, and Zanzibar.

The Government plans to connect an additional 11 districts during the 2025/26 financial year, while cross-border fiber links serve Zambia, Malawi, Kenya, Uganda, Rwanda, and Burundi.

4G networks cover main urban centres, while commercial 5G has launched in Dar es Salaam and select hubs, with FYDP IV prioritizing expansion of both 4G and 5G coverage as core accelerators of the digital economy.

Mobile Market

Tanzania's mobile market is served by four main mobile network operators—Vodacom Tanzania, Airtel Tanzania, Tigo (Yas), and Halotel—competing across voice, data, and digital financial services.

Total mobile subscriptions exceed 60 million SIMs nationwide, supporting a population estimated at 70 million and reflecting widespread multi-SIM usage.

Vodacom holds the largest market share by subscribers and revenue, followed by Airtel and Tigo, with Halotel maintaining strong rural penetration.

The Tanzania Communications Regulatory Authority (TCRA) regulates mobile licensing, spectrum allocation, quality of service, and competition, ensuring a level playing field as operators invest in 4G densification and 5G deployment.

Mobile Money

Mobile money is the leading channel for financial inclusion in Tanzania, with penetration reaching nearly 90% of the adult population and the Financial Inclusion Index (TanFiX) rising to 0.81 in 2024 from 0.72 in 2023.

The main providers—M-Pesa (Vodacom), Tigo Pesa, Airtel Money, and HaloPesa—drive person-to-person transfers, merchant payments, bill payments, and government revenue collections across urban and rural Tanzania.

Bank-mobile money interoperability through the Tanzania Instant Payment System (TIPS) enables seamless transfers between wallets and bank accounts, reinforcing mobile money as the rails of the broader digital finance ecosystem.

Formal financial service usage rose to 76% in 2023, with mobile money the principal driver compared to traditional bank account ownership at 22%.

Fintech

Tanzania's fintech ecosystem is expanding rapidly into digital lending, micro-savings, insurance distribution, and SME credit scoring, building on the mobile money distribution rails operated by the four MNOs.

The Bank of Tanzania regulates fintech under the National Payment Systems Act, with growing emphasis on regulatory sandboxes that allow innovators to test new products under supervised conditions.

Cross-cutting partnerships between banks, mobile money operators, and fintech startups are deepening access to credit and digital financial products, with insurtech, regtech, and embedded finance emerging as high-growth segments.

Policies

The Ministry of Communication and Information Technology leads policy direction for the telecoms sector, aligning sectoral strategy with Tanzania Development Vision 2050 and FYDP IV objectives for a digitally empowered society.

The Tanzania Communications Regulatory Authority (TCRA) is the primary regulator, overseeing licensing, spectrum allocation, quality of service standards, tariff oversight, and consumer protection across mobile, internet, and broadcasting services.

The Universal Communications Service Access Fund (UCSAF) extends connectivity to underserved rural areas, financing tower construction and last-mile infrastructure to support universal access goals.

The National ICT Policy guides digital transformation, e-government rollout, ICT skills development, and innovation, while Vision 2050 targets at least 70% digital literacy and over 80% of government services delivered through secure digital platforms.

The Bank of Tanzania regulates mobile money providers and fintech operators under the National Payment Systems Act, with TIPS interoperability and emerging sandbox frameworks supporting safe innovation.

Investment Opportunities

5G commercial deployment offers significant investment potential across network rollout, spectrum acquisition, and active-passive infrastructure sharing as operators scale capacity beyond Dar es Salaam.

Fintech applications—including digital lending platforms, insurtech, regtech, and SME credit scoring solutions—benefit from a growing addressable market driven by 90% mobile money penetration and real-time payment interoperability.

Fiber infrastructure presents opportunities in national backbone extension, metropolitan fiber rings, and fiber-to-the-home rollouts in Dar es Salaam, Dodoma, Arusha, and Mwanza.

Data centre investments are gaining momentum in response to data sovereignty trends, rising enterprise cloud demand, and the need for in-country hosting capacity.

Tower and passive infrastructure sharing through neutral hosts opens entry points for specialist towercos and infrastructure funds seeking long-tenor, contracted revenue streams.

Digital ID infrastructure integration with the national identification system creates downstream opportunities in KYC, e-government, and authentication services across financial and telecom platforms.

ICT corridor projects under the latest national development plan further broaden the investment pipeline for both domestic and international investors.

Last Update: May 2026

References

1. https://www.tiseza.go.tz/uploads/documents/en-1745479851-TIC%202024%20Investment%20FactSheet.pdf (Guide reference #6)
2. https://www.fsdt.or.tz/wp-content/uploads/2023/07/FinScope-Tanzania-2023-Full-Report-Insights-that-Drive-Innovation.pdf (Guide reference #16)
3. https://www.bot.go.tz/Publications/Regular/Annual%20Report/en/2026022607584561.pdf (Guide reference #17)
4. https://www.mawasiliano.go.tz/uploads/documents/sw-1747383343-SUMMARY_HOTUBA_YA_BAJETI_2025-26_FINAL[1].pdf (Guide reference #33)