Tanzania Telecom Sector Should Be Declared Critical Infrastructure, Report Says

The article argues that Tanzania should formally recognise telecommunications infrastructure as Critical Economic Infrastructure (CEI) because it now functions as the backbone of the modern economy in much the same way as roads, electricity, and water systems. It highlights that the country’s “digital grid” enables everyday economic and social activity, from mobile money transactions in urban markets to agricultural financing in rural areas, as well as access to education and public services.

According to data from the Tanzania Communications Regulatory Authority,  the sector has expanded rapidly in recent years, with mobile subscriptions rising from 52.8 million in 2021 to 111.9 million in 2026, and mobile internet users increasing from 29 million to 58.9 million over the same period. This growth reflects widespread digital adoption across the country, but it also places increasing pressure on existing infrastructure.

Despite this expansion, the physical telecommunications network remains relatively limited, with just over 10,000 towers serving tens of millions of smartphone users. The article argues that this imbalance is creating structural strain on network quality and coverage, especially in rural and underserved regions where expanding infrastructure is more expensive and less commercially attractive.

The report also emphasises that telecom operators face significant financial constraints that limit further investment. These include low average revenue per user, high costs of expanding into low-income or rural areas, and a combined tax and levy burden estimated at nearly half of sector revenues. Because many operators are part of multinational groups, investment decisions are influenced by global returns, meaning that countries with lower profitability risk receiving less infrastructure funding over time.

Finally, the article calls for a policy shift in Tanzania’s approach to telecommunications, arguing that it should be treated less as a revenue-generating sector and more as foundational infrastructure that drives long-term economic growth. It recommends reducing regulatory friction, lowering deployment costs, and improving investment conditions to accelerate network expansion. The broader message is that achieving long-term development goals, including ambitions for a trillion-dollar economy, will depend heavily on strengthening and protecting the country’s digital infrastructure.