Tanzania’s telecommunications companies are vital to our country’s development. The mobile industry contributes about 5.2% of Tanzania’s gross domestic product (GDP), generating a total value add of around $2.5 billion.

Mobile has also been a key part of the e-government strategy and has enabled many public institutions to directly engage with the general public through mobile money or SMS.  

As you might know, our telcos in Tanzania are required to list 25 per cent of their shares on the Dar exchange.

In a recent interview with Forbes, the Managing Director of Tigo stated that Tigo is in the process of finalising the IPO. According to Simon Karikari, the firm is ‘excited because the listing will give the opportunity to local Tanzanians to get ownership of this business. This will ultimately create more local ownership.’

Before the company lists its shares, though, it is planning to merge with its sister company Zantel. It is expected that this merger will improve the services offered to both Tigo and Zantel customers.

A merger between these companies will create a stronger network for all customers and allow Zantel customers to access Tigo’s premium services.

More broadly, a consolidated telecommunications market is beneficial to consumers as it means companies don’t have to have such narrow margins and can use this money to invest in further services for customers. 

It is good to see our telcos working towards more benefits for customers and also towards local ownership through the required IPO.