Transforming Tanzania: The Role of Technology in Creating Smart, Inclusive Urban Cities

Tanzania has been on a journey to transform its rapidly urbanising cities into smart, sustainable, and inclusive urban centres. The ongoing implementation of the Dodoma Capital City Master Plan, which is transforming the nation’s administrative capital, Dodoma, into a model smart city, is a notable example. Under this master plan, Dodoma aims to become a regional leader in smart cities through several initiatives.

This includes community-centric urban design, significant investments in the city’s infrastructure, relocation of government ministries and key administrative offices to Dodoma, expanding the Standard Gauge Railway (SGR) to connect the city with other major regions and promoting sustainable urban planning through green spaces, parks and recreational areas to balance urbanisation with environmental sustainability.

This vision of a smart Dodoma was echoed at the recent Future Ready Summit, co-hosted by Vodacom Tanzania, UNDP’s Funguo programme and COSTECH. The event brought together experts to examine how to transform the way cities function and serve their citizens. Central to the discussions was the revolutionary role of technology in accelerating the transition toward smart, sustainable, and inclusive urban futures.

Digital Infrastructure

A critical component of this transformation is the development of robust digital infrastructure. During the summit, Richard Schumacher, Managing Director of SEACOM Group Digital Infrastructure, explained how affordable broadband can serve as the backbone of smart city functionality, highlighting SEACOM’s investments in expanding connectivity across Africa. Currently, Tanzania’s Digital Economy Strategic Framework (2024–2034) aims to modernise and integrate digital technologies across various sectors, with a focus on expanding broadband access.

To date, Tanzania’s expansion of mobile broadband has been particularly notable. As of February 2024, approximately 81 per cent of mobile connections in Tanzania were broadband, encompassing 3G to 5G technologies. This lays the groundwork for cities that are not only technologically advanced but also resilient and inclusive, and sets a precedent for sustainable urban development in the region.

Financial Inclusion

Another pivotal element of smart cities is the expansion of digital financial services, particularly through mobile money platforms like M-PESA. As mobile phone usage increases, there is a growing demand for user-centric services. Vodacom Tanzania has showcased the potential of M-PESA, whose open API enables partners to connect with millions of users across various stages of their financial lives. The M-PESA Super App, launched by Vodacom Tanzania, has further enhanced user experience by integrating services such as mobile banking (MKoba), savings (Mgodi), bill payments (Songesha), and loyalty management (Tunzaa).

E-government Services 

Furthermore, the Future Ready Summit also highlighted the transformative potential of technology in public service delivery. Drawing inspiration from Finland’s “digital by default” approach, discussions emphasised the importance of foundational data systems, such as real-time population registers, to streamline and automate services. Tanzania has also made significant strides in this direction. The country has advanced to Group A in the World Bank’s GovTech Maturity Index through initiatives such as the Government Communications Network (GovNet), which securely connects over 70 ministries and departments. There is also the mobile government platform (mGov), which offers citizens access to services via SMS, USSD, and mobile applications.

Although Tanzania is on the road towards actualising smart, inclusive cities, innovative financing is essential to advancing these initiatives. At the Future Ready Summit, experts highlighted the importance of integrating sustainability principles into public-private partnerships (PPPs) to ensure long-term success. Stanbic Bank Tanzania exemplifies this approach by mobilising over $1 billion for environmental, social, and governance (ESG) initiatives. These financial strategies are pivotal in bolstering the development of digital infrastructure, mobile financial services, and e-government platforms, aligning with Tanzania’s vision for smart, inclusive, and sustainable growth.