Tanzania is experiencing a significant digital transformation driven by mobile technology. As the nation embarks on this journey, the imperative to enhance existing ecosystems and inspire a paradigm shift in attitudes becomes increasingly paramount. For the members’ engagement in August, the CEOrt brought together captains of industry and key stakeholders from the Public Sector for a knowledge sharing session on ‘Digital Transformation through Innovation and Collaboration.’ Beyond the exchange of best practices and deepened insights into strategies for fostering innovation, this session accentuated the gaps that exist within Tanzania’s regulatory and educational frameworks, impeding faster adoption of digital development.
The potential for collaboration between large corporations and dynamic tech startups and fintech enterprises is substantial. Over time, the landscape of startup innovation has evolved, witnessing active involvement from the private sector, developmental partners, and concerted efforts from associations. As the release of Tanzania’s forthcoming startup policy looms, innovators are brimming with anticipation for the prospects of thriving within an increasingly robust entrepreneurial ecosystem. However, as highlighted by Ms. Zuweina Farah, Founder of SNDBX and Director of External Affairs & Vodacom Foundation, during the panel discussion, there are several hurdles that must be addressed before the complete realisation of comprehensive digital transformation.
A significant policy aimed at propelling technology adoption in Tanzania is the introduction of the Regulatory Sandbox Framework. This framework presents a novel avenue whereby fintech companies can collaborate with established financial institutions and mobile network operators, enabling them to trial their applications under controlled conditions before launching them to the wider market. While this initiative undoubtedly signifies progress, its tangible implementation is still pending.
In a nation where digital transformation is epitomised by mobile technology, the strength of connectivity plays a key role in shaping the effectiveness of infrastructure development. As reflected in the Tanzania Communications Regulatory Authority’s Quarter 4 report for the fiscal year 2022/2023, there was a noteworthy 3.6% increase in total telecom subscriptions, culminating in 64.1 million subscribers by June 2023, compared to 61.9 million in March 2023. Additionally, annual internet subscriptions have consistently showcased an impressive average growth rate of 17% per annum. This transformative shift is poised to substantially impact the country’s social, cultural, and economic frameworks, enabling improved access to essential services and enhancing productivity and efficiency across diverse sectors. Nonetheless, while these figures effectively quantify the extent of connectivity access, they offer little insight into the utilisation patterns of these services. Consequently, these insights can be critiqued as only providing a partial perspective on the nation’s digital transformation journey. Constructing the digital economy we aspire to necessitates the establishment of regulatory frameworks that actively stimulate and encourage the use of these technological advancements.
According to the findings derived from a survey question posed at the start of the session to assess organisations’ utilisation of cloud computing technologies, an equitable portion of respondents (32.7%) either achieved complete migration to the cloud or opted for a hybrid approach, combining on-premises and cloud solutions to cater to specific requirements. Notably, data sovereignty could play a role in influencing these patterns, given the potential implication on data management and security. Furthermore, the survey results stress the complex interplay between technological advancements and regulatory considerations, revealing the multifaceted nature of decisions surrounding digital adoption.
Even as the startup landscape gains traction, the issue of ensuring the lasting viability of these entities remains a hurdle. More collaborative efforts are necessary to ensure these accelerators, incubators and hubs sustain themselves rather than depending on outside funding to support the startups within. Businesses are encouraged to actively engage with startups, facilitating corridors of partnership and collaboration in order to impart vital business sustainability skills to these young organisations. Such initiatives constitute a crucial facet of the broader educational enhancement efforts aimed to drive the nation’s transformation toward a digital future.
Mr. George Mulamula, CEO of Technovate and a trailblazer in the realm of tech innovation hubs in Tanzania, agrees that education stands as the pivotal driver of the nation’s digital future. Illustrating his point with an example, he shed light on the abundance of graduates who, while numerous, lack the novel ideas essential to cultivate an innovative mindset. Further compounding this issue is the prevalence of the “copycat syndrome,” wherein ideas are repetitively regurgitated without true innovation. Boot camps aimed at nurturing innovation within startups have been infrequent and, consequently, their overall impact has been limited. To address these challenges, the integration of design thinking skills within our overarching educational systems is imperative. This approach will help ensure that innovators craft their creations in direct response to real socioeconomic needs, thus enhancing the overall landscape of innovation.
Hon. Nape Nnauye, Minister for Information, Communication, and Information Technology, said it best when speaking to industry captains at the dialogue session. “We need to create ecosystems that support startups, that encourage risk-taking, and that celebrate both success and the valuable lessons from failure,” he mentioned. These remarks resonate with the broader theme of the event, highlighting the significance of collaboration, resilience, and adaptability in steering the nation’s digital future. While education primarily falls under the functions of the Government and Academia, the Private Sector also plays a crucial role in collaborating to ensure its relevance. Beyond financial support through scholarships, internships, and sponsorships, businesses are in a position to provide valuable insights into the skills and knowledge required in the rapidly evolving job market. This ensures that educational programs align with real-world needs, equipping students with the practical skills they will need to thrive.