By Peter Nyanje
When Africa’s tech revolution is celebrated, three cities dominate the headlines: Lagos, Nairobi, and Kigali. Lagos is churning out billion-dollar unicorns, Nairobi has earned the moniker Silicon Savannah, and Kigali’s state-driven digital transformation is attracting admiration worldwide. Yet, one city that ought to be on that list – Dar es Salaam – is glaringly absent.
This absence is not just a matter of pride; it reflects missed opportunities. Tanzania is East Africa’s second-largest economy with a fast-growing youth population, yet it remains a spectator in the continent’s digital race.
While Kenya leveraged fintech through M-Pesa and Rwanda built coding academies to fuel its innovation drive, Tanzania is still trailing behind, forfeiting billions in investment, thousands of jobs, and a chance at global recognition.
Why we fell behind
Let’s be frank: Tanzania’s lag in the tech ecosystem is not because of a lack of talent or ambition. It is a failure of environment.
Policy inconsistency and regulatory uncertainty have discouraged experimentation. Where Kenya allowed fintech innovators to “test and learn,” Tanzania often tied them up in red tape. Investors crave stability and Tanzania has not offered enough of it.
Capital is another missing link. Lagos and Nairobi didn’t grow by luck; they nurtured ecosystems of venture funds, accelerators, and angel investors. Tanzanian start-ups, meanwhile, remain starved of financing, with many collapsing before they can scale.
Then there is the education gap. Rwanda cleverly tapped global institutions like Carnegie Mellon to churn out skilled graduates for its innovation economy. Tanzanian universities, by contrast, remain trapped in outdated curricula with limited focus on entrepreneurship or digital skills.
And let’s not ignore digital infrastructure. While Kigali boasts near-universal 4G/5G coverage, large parts of Tanzania remain poorly connected. Without affordable, reliable internet, dreams of scaling digital businesses remain just that – dreams.
The cost of sitting out
The consequences are painful. Foreign direct investment is bypassing Tanzania, heading instead to the “big three.”
Our young people – Africa’s most valuable resource – are left with shrinking options, at a time when they could be powering a thriving digital economy. Globally, Tanzania is still branded as the land of Serengeti and Kilimanjaro, while our neighbours are rebranded as innovation powerhouses.
This narrative matters. Perception shapes investment, talent flows, and diplomatic partnerships. By staying out of the tech story, Tanzania is quietly relegating itself to the margins of Africa’s economic transformation.
What must change
But Tanzania’s missed moment need not be permanent. The country can still turn the tide – if it chooses bold reforms now.
- Stabilise policy and regulations. Clear, predictable rules for fintech, e-commerce, and start-ups will restore investor trust.
- Invest in human capital. Coding bootcamps, digital literacy, and serious academia-industry linkages must be prioritised.
- Open the doors to capital. Government-backed venture funds and partnerships with private investors can seed local innovation.
- Build infrastructure that works. Affordable internet and reliable electricity are the oxygen of digital economies.
- Nurture innovation spaces. Dar es Salaam, Arusha, and Dodoma need hubs and incubators that act as the nerve centres of creativity, much like iHub did for Nairobi.
And finally
Tanzania has the demographics, the market, and the geography to become a serious tech player.
What it lacks is urgency. Lagos, Nairobi, and Kigali show us that innovation ecosystems are built – not inherited. If Tanzania is willing to invest in its people, provide enabling policies, and welcome capital, it can still claim a seat at the table. The time to act is now. Another decade of hesitation will not only cost us investment but also risk condemning a generation of Tanzanian youth to the sidelines of Africa’s digital future.
