Tanzania has unveiled a TZS 222.6 billion ($89 million) budget for its information and communications technology sector for the 2026/27 fiscal year, with most funding directed toward infrastructure as the country accelerates its digital economy agenda.

Roughly 94% of the allocation is earmarked for development projects, including expansion of rural telecom towers, extension of the National ICT Broadband Backbone to the Democratic Republic of Congo, and upgrades to national data centers—signaling a focus on long-term capacity.

The government also plans to allocate TZS 5 billion to support at least 50 startups through local banking partnerships, aiming to strengthen Tanzania’s growing technology ecosystem.

The push comes amid strong sector growth. Tanzania’s ICT industry expanded by 14.3% in 2024, while mobile subscriptions rose 23.8% to 111.9 million as of March 2026. Internet users increased 19.5% to 58.9 million, reflecting rising digital adoption.

Mobile money usage and digital services continue to gain traction, reinforcing the sector’s role in financial inclusion and economic activity. Authorities are targeting smartphone penetration of 55% by 2027, pointing to sustained demand for connectivity.

Revenue for the fiscal year is projected at TZS 160.3 billion, largely driven by services linked to the national broadband backbone, positioning it as both infrastructure and a revenue-generating asset.

The plan underscores Tanzania’s broader strategy to position itself as a regional digital hub, using public investment to expand access while attracting private sector participation.