By Business Insider Correspondent
Tanzania is positioning itself to become a leading digital innovation hub in East Africa, leveraging its youthful population and growing startup ecosystem.
Ranked 7th in the 2024 East African Startup Ecosystem Index by StartupBlink, the country is seeking to raise its regional standing through targeted reforms and investment in entrepreneurship.
The government’s strategy focuses on building tech hubs, improving digital skills, and expanding access to funding for startups.
These efforts are also seen as a way to address structural unemployment.
In March 2024, the Information and Communication Technologies Commission (ICTC) reported that 21 million Tanzanians aged 15 to 34 were self-employed in tech and innovation-related fields, including startups and online businesses – about 33% of the total population, based on the 2022 census figure of 61.7 million.
Tanzania also benefits from strong digital growth. According to the Tanzania Communications Regulatory Authority (TCRA), internet subscriptions rose 86% between 2020 and 2024. Combined with a demographic profile in which over 60% of the population is under age 25, as reported by the World FactBook, this momentum supports the country’s digital ambitions.
However, Tanzania still trails regional leaders Kenya and Rwanda, ranked 1st and 3rd respectively in East Africa by the World Bank’s digital maturity index. Closing this gap will require investments in digital infrastructure, streamlined administrative processes, and greater private sector participation.
Examples from across the continent – such as Rwanda’s data center partnerships and Nigeria’s fintech development – offer models for Tanzania to follow. If its reforms continue, Tanzania could soon emerge among East Africa’s top five tech hubs.
SOURCE: ECOFIN AGENCY
