ABOUT DIGITAL ECONOMY
In the recent years we have witnessed major transformation in the communication sector, from migration from analog to digital television broadcasting to Simcard registration by biometric data and with massive adaptation of use of mobile money services Tanzania is in a better footing in digital economy.
Digital economy is a resultant of digitization of infrastructure and digitalization of processes and systems that initially were manually executed. Digital economy is the use of ICT/Digital tools to ensure everyone participates in the economic activitity of the country.
Digital Economy is basically looking at how digitisation/digitalisation can help drive the economy of the country. The chronologic order of digital economy development is:
Digitisation: which refers to converting of analog to digital
Digitalisation: which refers to Use of Digital Technologies and digitised Data to:
- Impact how work get done
- Transform how customers and companies engage and interact
- Create new (digital) revenue streams
- Increased formalisation
- Enabling new models of financing to emerge e.g. crowd funding
Increase economies of scale
- Provide better matching of buyers and sellers in a competitive marketplace
- Strengthen people’s trust in firms or governments
- Allow products and services to be customized and targeted
- Enabling new models, business and ways of doing things
- Increased Productivity to increase jobs and income
- Enabling an Inclusive Economy (push income to individuals)
Cognizant to the inevitability of digital economy and the need for Tanzania preparation to effectively leverage and compete in the global market and its multi-stakeholder nature. Tanzania Communication Regulatory Authority (TCRA) convened a high-level policy makers meeting. This high level policy makers session, was composed of a cross-cutting and very senior meeting of Ministers, Chief Secretary for the Revolutionary Government of Zanzibar, Principal/Permanent Secretaries, Regulators, Academics, the Controller and Auditor General, the Internal Auditor General, the Treasury Registrar, the Governor of the Central Bank and Heads of Public Institutions met in Zanzibar, 8th to 11th March 2022 in order to both exchange views and start mapping out the Tanzanian digital economy journey. The National digital economy Framework is the resolution from this meeting.
The National digital economy Framework has five (5) main pillars;
- Basic Infrastructure
- Digital Infrastructure
- Enabling Technology
- Human Capital Development
- Enabling Environment
The National Digital Economy Framework recommends the need for each sector to review their current policies, laws and regulatory systems in order to support the digital economy. Once each sector reviews its policies, laws, and regulations, it is expected that the nation will be able to swiftly adjust to the evolving digital economy and reap the greatest digital dividends while creating sustainable competitive advantages. Using the Framework as guiding tool, the experts from all sectors are required to formulate set of TARGETS for each strategy in the Framework. Further, the digital economy journey should take a "whole of Government" approach and therefore it is recommended to be coordinated centrally.
Other efforts that TCRA is making towards a digital economy is;
- Introduction of Digital Clubs;
- Digitalisation of all Authorities processes, systems and data (Including digitizing Know Your Customer (KYC) details, Introduction of Tanzanite Portal and use Big Data Systems);
- Aggressive Public Awareness and Technical capacity building for staff;
- Creating an enabling environment;
- Successful Auctioning of Frequencies;
- Technology Neutral Licenses;
- Frequent reviewed Regulations based on technology advancement;
- Introduction of Professional Single window Helpdesk;
- Free Trial Communication resources for innovators and start-ups;
- Promoted ICT Service through ICT Packs and Construction Tele-centers;
- Commissioning of Mawasiliano House Building to ICT Commission.