Towards Realizing Digital Economy In Tanzania.

Sahara Ventures
6 min readOct 28, 2019

Insights from the leadership workshop in the fourth industrial revolution — part of Sahara Sparks 2019 (Africa 4.0 Week).

Abstract |As part of Sahara Sparks 2019, Sahara Ventures in collaboration with the Embassy of Switzerland Tanzania and SICPA organized a high-level leaders workshop to reflect on the role of the fourth industrial revolution on accelerating socio-economic development in Africa. The workshop explored challenges and opportunities that emerge from the revolution, impact on strategic development sectors and approaches that can be adopted by the African government to adopt the revolution. The workshop had two main objectives; to help demystify the concept of the fourth industrial revolution to the leaders who attended the event and also gather insights from the attendees on how we can effectively adapt to the changes without leaving anyone behind.

It was a chilly Tuesday morning of the first week of October when leaders from different fields gathered together at the grand Serena hotel to discuss the ongoing changes that are enhanced by technology and the fate of our country therein. These leaders included Hon. Joyce Ndalichako, the minister of Education, Hon. Leo Näscher, Chargé d’affaires of the Embassy of Switzerland, Professor Benno Ndullu, the former governor of the Bank of Tanzania. Hon. Ami Mpungwe, the former Tanzanian ambassador in South Africa, CEOs from multinational and growing companies, business leaders, and various stakeholders from different fields and disciplines.

Indeed, the digital economy in Africa is an unfolding story. This is the story of catch up for African countries when it comes to the adoption of digital tools and platforms. In 1998, North America had a mobile penetration of 90%. Two decades later, Africa has almost equaled the number by 80%, a number that is still increasing. Pew Research reveals that cell phones are pervasive in Africa. In 2002, roughly one-in-ten owned a mobile phone in Tanzania, Uganda, Kenya, and Ghana. Since then, cell phone ownership has grown exponentially; today, cell phones are as common in South Africa and Nigeria as they are in the United States.

It is an undisputed truth that the African ability to leapfrog is massive. Indeed we are in a position to create solutions that are relevant in our context as we capitalize on the digital economy.

The Fourth Industrial Revolution is about the convergence of physical, biological and digital realms. The convergence is growing stronger with the passing of time. It creates new challenges and opportunities for developing economies. For example, it creates the opportunity for new jobs through digital platforms (platform and gig economy) but at the same time, it creates new challenges of equipping youths with relevant skills to catch up with rapid changes in technology.

These challenges and opportunities demand that we prepare for the changes. We need to do a country level digital readiness assessment. We can collaborate with global networks such as the World Economic Forum and the likes but it has to feed within a country’s own particular program, respond to the country’s own particular needs and priorities — These words echoed from Prof. Benno Ndulu, the former governor of the Bank of Tanzania who is currently co-directing the Commission on Technology and Inclusive Development anchored at Blavatnik School of Government as he was giving a keynote presentation the workshop.

It is evident that these changes are making a fundamental impact on the way we do everything. The digital economy is not just a sector, it is about how technology comprehends what we do, how it is affecting our way of living and the way we achieve things. Not just in the production process but even in the way we govern.

It was asserted that it is crucial for leaders to understand that the future will be very limited if people are not placed at the center. The belief was centered on the fact that when the process is coordinated, it is then easy to set policies that are centered on innovation hence demonstrating effectiveness.

when leaders allow room for innovation, they can monitor and give way for growth — Benno Ndulo

Before the workshop began, Hon. Joyce Ndalichako, The minister of Education officiated the workshop, and these were her words;

“This is yet another milestone in the human revolution. It is occurring at a faster speed than one would imagine, and still, it is expected to increase with time. To what extent will these changes impact our communities? To what extent are we prepared to take advantage of these changes? Indeed such a gathering is an opportunity for all participants to understand and make the most of these technologies”

She further acknowledged that the government is aware of the role and the impact technology has and thus has strategically championed various initiatives to enhance the technological impact within our nation.

The minister, clearly stated that the government also recognizes the value and tireless effort of other stakeholders in putting to good use the advantages that come with technology.

Hon. Ami Mpungwe also expressed his concerns: “decades after independence little has changed in Africa’s growth. Reflecting on the persistence of the colonial rule there is little growth in most African countries. It is evident that today we are limited by our outdated understanding”

He further explained that as a nation, we have the potential to leapfrog. It is possible to grow our resources and our wealth while repairing our planet for the dawn.

His entire presentation was at the heart of preserving the planet. Technology can help us save the planet, but more than anything we must learn to value nature.

Philippe Thévoz, the Vice President of e-Governance Systems, SICPA shared a mind-opening presentation concerning the technology behind blockchain and the impact such technology has had in the history of Estonia.

The key insights included:

  1. Cost-saving in running the government. The mobilization of tax collection is much easy and effective. Going digitally has saved Estonia 2% GDP
  2. Build trust with citizens. Citizens should trust their government. The technology allows transparency and it can trace when there is a fraud or
  3. It allows simplified and structured interaction with businesses within a country.

The workshop included 2 more pannel discussions and different keynote presentations from individuals who excelled in the different subjects relating to the Fourth Industrial revolution.

--

--

Sahara Ventures

Our mission is to build a stable innovation, technology and entrepreneurship ecosystem in Africa through consultancy and investment.