Tanzania Calls for More Investment in Digital Infrastructure
Tanzania · TECHNOLOGY
Key Facts
- —What happened Deputy Minister Dr Switbert Mkama called on 8 September 2026 for more public and private investment in digital infrastructure to support National Development Vision 2050.
- —The numbers The 2026/27 information and communications technology budget is Sh222.6 billion (about US$90 million), with 94.1 percent set aside for development spending.
- —Rural push The budget includes Sh40 billion (about US$16 million) for 636 communication towers in rural areas and Sh103.6 billion (about US$42 million) for the National ICT Broadband Backbone.
- —Private capital Helios Towers Tanzania aims to reach 4,500 sites by the end of 2026, up from more than 4,000, with over 1,900 of its existing sites already in rural areas.
- —What comes next Tanzania plans two data centres in Dodoma and Zanzibar, five zonal technology centres, and start-up financing of Sh5 billion (about US$2 million) for about 50 firms.
Tanzania is stepping up its push for digital infrastructure investment, with a Sh222.6 billion (about US$90 million) information and communications technology budget for 2026/27 and a direct appeal for more private capital to build a competitive digital economy.
Tanzania wants more public and private money flowing into communications networks, innovation and human capital as it positions itself as a regional connectivity hub. Deputy Minister Dr Switbert Mkama made the call on 8 September 2026, framing digital infrastructure as central to the country’s National Development Vision 2050.
A budget built for digital infrastructure investment
The 2026/27 information and communications technology budget totals Sh222.6 billion (about US$90 million). Of that, 94.1 percent is earmarked for development spending, a signal that the government is prioritising construction over running costs.
The largest single item is Sh103.6 billion (about US$42 million) for the National ICT Broadband Backbone. Another Sh40 billion (about US$16 million) will fund 636 communication towers in rural areas, extending coverage where commercial operators have been slow to build.
The Tanzania Digital Project receives Sh12.2 billion (about US$5 million). The budget also covers two data centres in Dodoma and Zanzibar, five zonal technology centres, and 32 One-Stop Service Centres.
Start-up financing of Sh5 billion (about US$2 million) is planned for about 50 firms. The government says it is creating a “favourable investment environment” for the sector.
Private operators are already spending
Helios Towers Tanzania marked its 15th anniversary with a clear expansion target. The firm said it aimed to reach 4,500 sites by the end of 2026, up from more than 4,000, with over 1,900 sites already in rural areas.
Executives from Yas Tanzania, Airtel Tanzania and Vodacom Tanzania also attended. Vodacom’s managing director Philip Besiimire said every tower built in a village without reliable mobile service connects people to healthcare, payments and market information.
These commitments show that private capital is responding to the same logic driving government policy. Rural coverage, data capacity and backbone links are all expanding at the same time.
Digital sovereignty and regional ambition
Tanzania is not building networks for their own sake. The government’s 2024–2034 Digital Economy Strategy and Dira 2050 frame digital infrastructure as core state power, industrialisation and growth policy.
The country is extending backbone links toward the Democratic Republic of Congo. That move positions Tanzania as a regional connectivity hub, not just a domestic market.
Building national data capacity in Dodoma and Zanzibar also matters. It reduces reliance on foreign data centres and keeps more digital value inside the country.
This fits a wider pattern across the continent, where governments are treating connectivity as strategic infrastructure. The race for digital influence is part of the broader contest covered in Africa: The New Scramble.
Who gains and who loses
Rural communities stand to gain the most from the 636 new communication towers. Better coverage means access to mobile money, government services and market information that were previously out of reach.
Local start-ups benefit from the Sh5 billion (about US$2 million) financing pool, though the amount is modest for about 50 firms. That works out to roughly Sh100 million (about US$40,000) per company if spread evenly.
Established tower operators like Helios Towers Tanzania and YAS gain from a policy environment that encourages network expansion. Their existing investments become more valuable as the government pushes for universal coverage.
The main risk is execution. Large infrastructure budgets do not always translate into completed projects, and rural tower construction faces high costs and difficult logistics.
The regional read-through
Tanzania’s push mirrors moves in Kenya, Rwanda and Uganda, where governments are courting private capital for digital infrastructure. The difference is Tanzania’s explicit link to backbone links toward the Democratic Republic of Congo.
That cross-border dimension gives the strategy a geopolitical weight. A country that controls key connectivity routes can influence trade, data flows and investment across a wider region.
For investors, the signal is clear: Tanzania wants partners who can build, operate and finance digital assets. The government is offering a policy framework and a growing market in return.
What to watch next
The two data centres in Dodoma and Zanzibar are the projects to track. Their completion would mark a significant step toward domestic data sovereignty.
The 636 rural towers are also a concrete test of delivery. If they are built on schedule, the government’s credibility on infrastructure will strengthen.
Helios Towers Tanzania’s year-end target of 4,500 sites offers a private-sector benchmark. Hitting that number would confirm that commercial operators are matching public ambition with capital.
Frequently asked questions
How much is Tanzania spending on digital infrastructure in 2026/27?
Tanzania has budgeted Sh222.6 billion (about US$90 million) for information and communications technology in 2026/27, with 94.1 percent allocated to development spending.
What are the main projects in Tanzania’s digital infrastructure plan?
The plan includes Sh103.6 billion (about US$42 million) for the National ICT Broadband Backbone, Sh40 billion (about US$16 million) for 636 rural communication towers, and two data centres in Dodoma and Zanzibar.
Which private companies are investing in Tanzania’s digital networks?
Helios Towers Tanzania aims to reach 4,500 sites by the end of 2026, up from more than 4,000, with over 1,900 of them in rural areas.
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