Tanzania Plans Electronics Import Ban to Boost Local Industry

Tanzania Moves Towards Electronics Import Ban to Boost Local Industry

The Tanzanian government is planning to implement a ban on the importation of electronics as soon as the country establishes sufficient local manufacturing capacity. This step aims to bolster domestic industries, particularly in the production of Information and Communication Technology (ICT) devices, including smartphones, laptops, and computers.

While the timeline for the ban remains unclear, Dr. Nkundwe Mwasaga, the Director-General of the ICT Commission, revealed during a visit to Tanztech Electronics Limited in Arusha that the restriction will be enforced once local companies can meet the country's demand for electronic products.

The government's goal is to reduce reliance on foreign imports by encouraging the growth of the local electronics manufacturing sector. Dr. Mwasaga stressed the importance of attracting investors to establish plants capable of producing a range of ICT products. He emphasized that this initiative is central to Tanzania’s ambition of creating a self-sustaining digital economy.

"In our pursuit of becoming a digital economy, we aim to reduce dependence on external sources," Dr. Mwasaga stated. "Local manufacturing will not only create business opportunities for young entrepreneurs but also enable the development of solutions for local challenges." He highlighted that locally produced electronics could be tailored to address issues in agriculture, livestock, and business, while also contributing to national security by ensuring better control over data protection.

Despite the government’s vision, challenges persist. Gurveer Hans, CEO of Tanztech Electronics Limited, expressed concerns about the high tax burden on locally assembled products, which hinders their competitiveness against imported devices. "Manufacturers are taxed, and then consumers are taxed again, making local products less attractive," Hans explained.

Dr. George Mulamula, an ICT consultant with the Tanzania Communications Regulatory Authority (TCRA), suggested that local manufacturers focus on producing devices that cater to the needs of rural communities, particularly in Kiswahili language support. He also proposed the development of durable, solar-powered devices for areas lacking reliable electricity.

Tanzania’s initiative to encourage local manufacturing of ICT products aligns with its broader strategy to build a sustainable digital economy. The move aims to reduce dependency on imports while fostering innovation and supporting economic growth.