Tanzania's Budget 2025/26: Propelling Digital Transformation Towards Vision 2030

As Tanzania accelerates its digital transformation the 2024/25 national budget, particularly for the Ministry of Communication and Information Technology, held valuable insights as we enter the 2025/26 financial year. My review examines key initiatives from the previous budget, and examines their alignment with Vision 2030 and the Sustainable Development Goals (SDGs) in connectivity and digital inclusivity; as well as some suggestions for the coming year.

The National ICT Broadband Backbone (NICTBB) Expansion.

Around 44% of the 2024/25 Ministry of Communication and Information Technology budget was allocated to expanding the NICTBB. This included building a 186-kilometre fibre line from Kigoma to the Democratic Republic of Congo, setting up a Broadband Geographical Information System, creating data storage centres in Dodoma and Zanzibar, and connecting 100 justice and security institutions with fibre infrastructure.

This expansion supports regional connectivity and economic integration, positioning Tanzania as a key player in East Africa’s digital economy. But increasing digital infrastructure also increases exposure to cyber threats. Without strong legal and technical safeguards, the country risks data breaches. The 2025/26 budget should therefore balance infrastructure development with better cybersecurity and data protection systems.

Digital Tanzania Project

With a budget of 24.85 billion shillings, the project funded ICT colleges in Dodoma and Kigoma, finalised the national information statistics system, and initiated smart city feasibility studies for Dodoma, Arusha, and Mbeya.

This project targets the digital divide in underserved areas by investing in digital education and infrastructure. Smart cities aim to use technology to improve services like traffic control and resource management, ultimately enhancing urban life and supporting a growing digital economy.

Postcode Project

The postcode system received 11.5 billion Tanzanian shillings to create residential address laws, link the system to public services, and promote public awareness.

Accurate addressing is critical for services like emergency response, e-commerce, and identity verification. This project lays the groundwork for better planning, financial inclusion, and effective service delivery. A reliable address system also helps with taxation, urban planning, and civic engagement—key pillars for inclusive digital development.

ICT Infrastructure Development

Funds were allocated to ICT parks and innovation (6.1 billion), broadcasting network expansion (9.3 billion), publishing equipment (5 billion), institutional capacity-building (3 billion), and mass communication projects (980 million)

These investments support the growth of a modern digital ecosystem. ICT parks can nurture startups and innovation. An expanded broadcasting network improves communication and public education. Publishing infrastructure enhances information control and national content production. Institutional support is vital for delivering e-government services, while public awareness campaigns help bridge digital literacy gaps. Success depends on timely project execution and strategic partnerships that deliver measurable outcomes like employment and innovation.

Data Centres and National Information Security

Separate from broadband expansion, the government supported building data centres in Dodoma and Zanzibar and launched a National Information Security Centre. Core institutions like the military, judiciary, and anti-corruption agency were connected to the national fibre network.

These efforts aim to build national digital resilience. Hosting sensitive data within the country reduces dependency on foreign systems and improves security. A central cybersecurity unit helps detect and respond to threats in real time, enhancing national security and digital sovereignty.

Policy and Regulatory Frameworks

To improve online safety, the government introduced the Private Information Security Act, set up a Cyber Security Unit within the Police Force, and launched a cybercrime reporting hotline.

Clear policies and laws are essential to protect citizens online and build trust in digital services. These frameworks ensure that online platforms are safe for communication and transactions.

Progress and Considerations for 2025/26

In July 2024, Tanzania officially launched its National Digital Economy Strategic Framework 2024–2034, establishing a foundation for a digitally inclusive and innovation-driven economy. As the country prepares its 2025/26 budget, attention now turns from planning to implementation—scaling digital infrastructure, enhancing digital literacy, and strengthening cybersecurity. The ongoing revision of the National ICT Policy 2016 further aligns policy with the framework’s aims and emerging technological realities.

A clear example of this transition is the ongoing project by Universal Communications Service Access Fund (UCSAF), which is funding the installation of over 400 communication towers in rural areas and transferring ownership of the towers to TTCL upon completion. This rollout will significantly enhance connectivity for underserved communities. For 2025/26, the budget must continue prioritising such initiatives—bridging the digital divide, operationalising ICT parks, and expanding e-government services—as essential steps towards achieving Vision 2025 and the SDG targets on inclusion, innovation, and sustainable growth.

Conclusion

Tanzania’s 2024/25 budget laid the foundation for digital growth. As the country prepares for 2025/26, it must focus on strengthening infrastructure, improving cybersecurity, and ensuring all citizens can access and benefit from technology. Doing so will help Tanzania become a more inclusive and sustainable digital nation on the path to Vision 2030.

Disclaimer:

Rakim Baliwena is a Senior Audit Associate with Deloitte & Touche. The views presented are his own and not necessarily those of Deloitte. He can be reached at rbaliwena@delotte.co.tz