This newsletters takes a deep dive into Tanzania's telecommunications sector, examining its role in the economy, recent industry developments, and the fiscal challenges it faces. The publication also sets out reform proposals aimed at enhancing the sector's performance.
Key highlights:
- Telecom subscriptions: 106.94 million in December 2025 which was a 23.13% Year-on-Year (YoY) growth.
- Internet subscriptions: Increased to 58.12 million in December 2025 reflecting a 20.98% YoY increase from 2024. Internet penetration rate is at 85.3%.
- Mobile money subscription: A 20.98% YoY increase in active accounts by December 2025 which translates to 76.47 million subscribers.
- Network coverage: Population coverage reached 94.2% for 4G and 30.1% for 5G while geographical coverage is at 77.3% and 10.5% respectively.
- Sector investment: Expansion of broadband coverage (new 4G sites and fibre network), capacity enhancements and modernisation of IT infrastructure.
- Tax contributions: VAT and excise duty revenue from telecommunication sector reduced by 1% to TZS 480 billion in the six months to December 2025.
- Persistent challenges: Despite strong growth, the same key obstacles that have been mentioned in the past few years continue to hinder progress: High excise duty rates, mobile money levy on cash withdrawals, infrastructure limitation in rural areas and affordability barriers for smartphones continue to impact the sector achieving its true potential.
- Key policy recommendations: Reduction of excise duty rate, reinstatement of VAT exemptions on smartphones, abolishment of mobile money withdrawal levy and centralisation of advertisement levy collection for improved compliance.
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