Africa-Press – Tanzania. Dar es Salaam.
Technology experts yesterday outlined issues that should be implemented in order for Tanzania to attract investment from big tech companies and significantly benefit from the digital economy.
Outlined issues include: increasing market size, grooming more digital experts, having predictable regulations, global citizenship, improving infrastructure, enhancing political stands and centralizing service provision for startups.
This comes amid increasing the big-tech’s interest in the African content shortly after Twitter said it was opening its first African office in Ghana, with Amazon expressing intention to invest $280 million in opening its first African office in South Africa.
Microsoft is also working with the Nigerian government to accelerate digital transformation in the country over the next three years, a clear testimony that the continent has a huge untapped market.
Microsoft is also investing in building the Africa Development Centre (ADC) and the Microsoft Africa Research Institute (Mari) in Kenya.
Also, the ADC is planning to invest $100 million in new tech within the first five years, while Mari uses Artificial Intelligence (AI) cloud tech to improve productivity.
Speaking to The Citizen, Smart Africa Group’s (SAG) chief executive officer Edwin Bruno said Tanzania’s market size, which is low compared to that of Kenya, Ghana, Nigeria and South Africa, had to be increased.
He said market size enables investors to make decisions on investment, citing areas like Financial Technology (Fintech).
According to him, Tanzania’s market will be found to have a market size of $200 million, while Nigeria, Kenya and South Africa’s have $1 billion, $400 million and $700 million respectively.
“Calculations on the market size will enable investors to know possible market share. Through conventions they will project the possible growth rate including expected expenditure in expertise and marketing,” he said, adding: “That is why they prefer markets like Ghana, Nigeria and South Africa to Tanzania.”
He said the government’s promise to increase internet penetration to 80 percent come 2025 and tax waiver on smartphone imports as a positive move in increasing the number of internet users and therefore market size.
According to him, internet connectivity and facilitation of digital payment systems should be put into consideration, warning that on-going discussion on digital payments is not healthy to the country’s ecosystem.
Regarding experts, he said the country has a serious shortage of engineers (developers) capable of developing systems, saying whenever they are available; they are inefficient and expensive, forcing investors to consider recruiting from abroad.
Sahara Ventures chief executive officer and Startups Organization’s board member Jumanne Mtambalike said Tanzania should significantly invest in experts.
He said while Kenya and Ghana respectively produce over 60,000 and 100,000 engineers as compared to the relatively small Tanzanian number.
“Tanzania should seriously invest in the area of talent. Universities and colleges should strive at producing digital skills and talents in order to fuel the ecosystem and attract investment,” he said.
Regarding regulatory frameworks, Mr Bruno said Tanzania’s unpredictable regulations scared investors, especially when management and regimes changed.
“Regulations should be predictable, live longer and innovation stakeholders must be involved whenever changes are required,” he said.
Mr Mtambalike said good policies and regulations increase investor confidence of capital protection and safe exit from stock markets whenever the decision is inevitable, calling for creation of a conducive investment climate for big tech investment.
Citing the recent report by African Arena, global citizenship focuses on expatriates and the diaspora, saying the duo are matured innovation entrepreneurial ecosystems with pre-requisite professions from abroad who come to work the country’s ecosystems.
“In Kenya, there are World Bank (WB) and the International Monetary Fund (IMF) experts who collaborate with locals in starting companies and ease capital attraction,” he said.
According to him, Nigeria was doing exceptionally well in the area through remittances, noting that the diaspora significantly contributed to the country’s economy and capital inflows.
He said political leaders in Nigeria, Ghana, South Africa, Egypt, Kenya and few others attracting investment from big tech companies are well exposed, understand dynamics, high involvement with the youth, promote their countries and create conducive investment climate.
“Ghanaian President (Nana Akufo-Addo) personally welcomed Twitter as they opened its office, likewise to his South African counterpart Cyril Ramaphosa when Amazon chose the southern African country,” he said.
For her part, Ms Asha Abinallah said regulation bodies dealing with startups are not centralized creating inconveniences and sometimes discouraging young innovators in the country.
“This is unlike our Kenyan close competitions where services for young innovators are centralized and take little time to attend them,” she said.
Yesterday, deputy minister for Communication and Information Technology, Mr Andrea Kundo said the government was working to improve the investment climate and safety of invested capital by reviewing the ICT and Banking Policies.
“Already we have sound political stability. We are currently improving the country’s international relations and instil ICT concept to children from the tender age,” he said.
