The director for public policy at the Groupe Speciale Mobile Association (GMSA) for Sub-Saharan Africa, Caroline Mbugua, has called on Tanzanian officials to revise the taxation policies on mobile services in Tanzania.
GSMA research findings have stated that Tanzania’s mobile service tax is almost double that of the whole East African region. This has led to some Tanzanians not being able to afford mobile services like the internet.
At the the Mwananchi Thought Leadership Forum on ‘Digital Transformation for a Sustainable and Inclusive Future’, held on Tuesday, 20th June, Ms Mbugua stressed that mobile services should be affordable for all.
“What do we need to be doing? What do we need to address for consumers to actually be able to go online for Tanzania to be able to achieve 80 percent broadband penetration by 2025? It’s affordability, nothing else.” She argued.
Tanzania’s Mobile Money Drive
Tanzania launched mobile money operations in 2008. The service has helped the population gain access to quickly accessible financial services. However, the service has seen a slow growth in Tanzania compared to other East African countries.
The Tanzania Communications Regulatory Authority’s (TCRA) quarterly report, has revealed that mobile subscribers numbered 61.9 million as of March 2023, but mobile money subscribers are only 44.35 million.
Ms Mbugua praised the mobile money service, however, she noted that affordability was still a problem.
“This is a great opportunity, but when you look at the level of affordability of mobile services to be able to do digital trade, it means that a trader in Tanzania will be disproportionately disadvantaged compared to a trader in another country.”
She insisted that Tanzanian traders will better compete in the digital market if services became more affordable.
“Like other sub-Saharan African countries, mobile financial services are what drives financial inclusion in Tanzania. Consequently, the more mobile services are affordable, the better and more inclusive financial services will be in the country.”
What is the GSMA?
The GSMA is a non-profit industry organisation founded in 1995. It has over 750 mobile operators under its umbrella. Headquartered in London, the GSMA has often stated that it seeks to represent the interests of mobile network operators worldwide. The GSMA has a strong presence in Sub-Saharan Africa, and has helped strengthen mobile connection to the region.
