New Year! New Opportunities! Tanzania’s Internet Economy

[ronald.babikanyisa]

It’s the dawn of a brand new year, and also a rare leap year! There has been a feeling in the atmosphere since last year’s elections were held, which was mistakenly diagnosed as pre-election jitters. This misdiagnosed feeling is still being felt throughout the nation. It is a feeling of hope; a feeling that a nations potential can actually be fulfilled in our lifetimes. Tanzania’s mobile network providers such as Tigo already have nationwide coverage and facilities such as Tigo Pesa, and internet that facilitate mobile banking for all.

Traditional brick and mortar businesses have embraced facilities provided but all major networks such as Tigo Pesa, however 2016 will see most existing Small and medium sized enterprises invest expanding their business reach at the cheapest cost to them, searching for ways to provide nationwide access to their products.

Jumia Tanzania believes there is a common misconception, that a business has to grow within its means, to the point where servicing a nation becomes a feasible. We predict that Tanzania will reap the Internet’s potential for social and economic gains in 2016 as it continues to invest in infrastructure and the broader ecosystem for innovation.

Tanzania’s Internet economy rests on two pillars, namely, “core infrastructure” and “conditions for usage.” Core infrastructure includes aspects of the enabling environment – i.e. physical infrastructure and characteristics of the business environment, such as mobile and Internet coverage, electricity, availability of skills, education levels, and perceptions of corruption. Conditions for usage include those that influence access, awareness, availability and attractiveness. They include a range of drivers, from the cost of devices and price of packages to factors affecting citizen awareness, such as education levels, usage and relevance of services.

Several internet ventures have emerged in Tanzania servicing markets in the retail, hospitality, real estate, and employment industries thus far in Tanzania and other East African Markets to take advantage to the prevailing wave of change silently hitting the African continent.

Regardless of the industry you are in or the size of your business, recent technological advances, combined with the enthusiasm society as a whole has embraced change forces us to have a positive outlook for 2016.