Tanzania dips into telecoms
Telecommunications is one of the fastest growing sectors in Tanzania and looks set to receive substantial further investment over the next few years. The country’s mobile network operators have aired plans to invest in network expansion, as well as mobile data and cash transfer services. However, the major players in the sector are concerned about the government’s attempts to cash in on the rapid growth of telecommunications through the introduction of a SIM card tax of 1,000 shillings per month and an excise duty of 0.15% on money transfers, which they claim will dampen growth prospects for the sector. Penetration rates remain fairly high for the region, but at around 48% (22 million users) there is great scope for growth. The taxes are currently under review and could be phased out following intense pressure from the mobile operators. Even if the government changes its stance, revenue collection is likely to continue until Parliament gets round to amending the 2013/14 Finance Act.