Tanzanian Telecom Law Under Review After Challenges

Law Compelling Telecom Companies to List on the Stock Exchange Under Review

Arusha, February 21, 2025

The Tanzanian government is ready to revisit the implementation of a law that mandates telecom companies to list 25 percent of their shares on the Dar es Salaam Stock Exchange (DSE). This move comes after concerns have been raised regarding the impact of this law on the telecommunications sector.

Vodacom Tanzania made history as the first telecom company to comply with the Electronic and Postal Communications Act (Epoca) and the 2016 Finance Act, registering and selling 25 percent of its shares to the public on the DSE. The government had strongly encouraged Tanzanians to invest in these shares by reviewing the company's prospectus and participating in the offering.

However, speaking during a meeting on February 20, 2025, with officials from his ministry and various sector stakeholders to discuss the 10-year Digital Economy Strategy (2024–2034), Minister for Communication and Information Technology, Jerry Silaa, acknowledged the challenges arising from the law's implementation. Silaa emphasized that the government is open to discussions with stakeholders to improve the current framework.

Despite Vodacom’s compliance, Silaa noted that the performance of companies that have followed suit has not been as satisfactory as hoped. He suggested that further evaluation is necessary to refine the process and ensure it remains beneficial for all parties involved.

The minister pointed out that when the government imposes stringent conditions, it can lead to undesirable outcomes. He echoed that market forces should play a significant role in driving the sector forward. Silaa also highlighted that, while the law's implementation has been met with some challenges, collaboration between the government and stakeholders is key to shaping a more effective approach.

As the government seeks to align its telecom policies with the broader vision of President Samia Suluhu Hassan, Silaa emphasized the importance of revisiting the current framework to ensure it supports a thriving telecom sector that contributes to the country's growth and investment climate.

“We create laws to streamline, not restrict,” Silaa said, reiterating the need for flexibility in adapting regulations to the evolving market dynamics.