Category: The Citizen

Kigali. NMB Bank Plc has signed two strategic financing agreements worth a combined $180 million (over S50 billion) with International Finance Corporation (IFC), British International Investment and Norfund to expand lending to small and medium-sized enterprises (SMEs), agribusinesses, women-led enterprises and youth-driven businesses across Tanzania.

The agreements, signed on the sidelines of the Africa CEO Forum in Kigali, comprise $100 million from IFC and $80 million from BII and Norfund. The facilities are expected to strengthen NMB’s lending capacity and support the provision of longer-term structured financing to businesses operating in key productive sectors of the economy.

NMB said in a statement yesterday that the funding will help address growing demand for credit among expansion-oriented enterprises, particularly those seeking working capital, investment financing and support to strengthen supply chains. The statement further added that the facilities also align with its Medium-Term Strategic Plan 20262030, which focuses on responsible growth, financial inclusion and sustainable finance.

Speaking during the signing ceremony, NMB managing director and chief executive officer Ruth Zaipuna said the agreements reflected growing international confidence in the bank’s strategy, governance and contribution to Tanzania’s development agenda. “Securing these facilities is a strong endorsement of NMB Bank’s growth strategy and development mandate.

The additional long-term capital will enable us to expand financing to SMEs, agribusinesses, women entrepreneurs and youth-led enterprises..

,” said Ms Zaipuna. She said the facilities would strengthen the bank’s ability to provide fit-for-purpose financing, accelerate product innovation and deepen partnerships across value chains to support resilient business growth and wider socio-economic impact.

Managing Director and Head of Africa at BII, Chris Chijiutomi, said the latest commitment builds on the institution’s existing partnership with NMB. “This latest commitment builds on our enduring partnership with NMB Bank since we invested in NMB’s Jamii Sustainability Bond in 2023. By providing and mobilising long-term, stable capital to MSMEs and agricultural businesses, BII is supporting Tanzania’s inclusive and resilient growth alongside NMB Bank’s continued efforts to provide more tailored and accessible financing solutions to underserved businesses across the country,” he said.

The transactions further position NMB among Tanzania’s leading financial institutions in mobilising development finance for the private sector. The bank said it would deploy the facilities in line with its strategic priorities, with a focus on expanding access to finance for entrepreneurs and supporting growth in productive sectors of the economy.

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Songea. Communities in Ruvuma Region have been urged to fully utilise economic empowerment opportunities provided by the charity of the Catholic Church to improve livelihoods and accelerate the fight against poverty.

The call was made on May 17, 2026 during the 50th anniversary celebrations of the confederation of Catholic humanitarian and development organisations, Caritas. Executive Director of the non-governmental organisation Ruvuma Commercialisation and Diversification of Agriculture (Rucodia), Dr Joseph Mhagama, who was the guest of honour at the event held at Majimaji Stadium in Songea, commended the Catholic Church for its continued role in promoting community welfare through interventions in agriculture, education and health, noting that it had played a significant role in both spiritual and social development.

He said residents of Namtumbo, Mbinga and Songea districts have benefited from Caritas-coordinated programmes, including entrepreneurship training, microcredit facilities, improved agriculture education and modern livestock-keeping practices. He said the initiatives had helped households increase incomes and improve overall living standards.

“I take this opportunity to commend our Catholic Church leaders for the tremendous work you are doing. You are protecting peace, advocating for stability and improving people’s lives.

The Church has been building dispensaries, schools and classrooms, while also supporting agriculture services. Caritas should continue serving Tanzanians so they can free themselves from poverty,” he said.

A soybean farmer from Namtumbo District, Mr Zuberi Juma, said he previously faced low productivity and income challenges before joining Caritas-supported economic groups. He said he has since expanded his farming activities and achieved greater financial independence.

Mbinga resident Singirada Matembo said Caritas support had strengthened community cohesion through savings and credit groups, enabling women and young people to start small businesses and improve their economic status. Caritas Songea Archdiocese Director Jojina Mbawala said the organisation’s main objective is to support vulnerable communities to become self-reliant by providing knowledge and sustainable development opportunities.

She said Caritas will continue working with communities and development partners to ensure more people, particularly in rural areas, benefit from its programmes. The jubilee celebrations marked five decades since the establishment of the Caritas apostolic department in Ruvuma Region.

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Dodoma. The government has stepped up efforts to bridge Tanzania’s digital divide through a Sh29 billion project that will see the construction of 287 communication towers in underserved areas, connecting nearly three million people to reliable mobile and internet services.

Speaking in Dodoma at the weekend during a seminar for editors and journalists, the acting chief executive officer of Universal Communications Service Access Fund (UCSAF), Mr Albert Richard, said the project forms part of the government’s broader strategy to accelerate digital transformation and expand communication access across the country. Mr Richard said the project, launched on December 5, 2025, is being implemented under Phase 10 of the national rural communications expansion programme and is expected to be completed within 15 months.

He said the 287 towers will be constructed in 287 wards across Mainland Tanzania and Zanzibar, targeting remote and commercially unattractive areas where private telecommunication firms have been reluctant to invest. “The government, through UCSAF, continues to ensure communication services reach all citizens regardless of geographical location.

This project is strategic in stimulating economic growth, improving access to social services, and supporting the vision of a digital Tanzania,” Mr Richard told participants. According to data presented during the seminar, the project will directly benefit about 2.

97 million residents living in 359 villages across 114 districts nationwide. Regions expected to benefit include Mwanza, Rukwa, Manyara, Simiyu, Kagera, Dodoma, Kigoma, Singida, Mbeya, Mara, Morogoro, Tanga, and Zanzibar’s Unguja and Pemba islands.

Mwanza leads in projected beneficiaries, with 364,771 residents expected to gain access to improved communication services through the construction of 24 towers. Rukwa follows with 250,387 beneficiaries and 15 towers, while Manyara will receive 16 towers serving about 199,122 people.

Under the implementation arrangement, Airtel Tanzania has been allocated 137 towers, Vodacom Tanzania 109 towers, while Yas Tanzania, through Honora Tanzania, will construct 37 towers. Tanzania Telecommunications Corporation has been assigned four towers.

class=”article-picture” 8 class=”article-picture_caption” 1 The Universal Communications Service Access Fund (UCSAF) acting chief executive officer, Mr Albert Richard, speaks during a seminar for editors and journalists held over the weekend in Dodoma. PHOTO| KATARE MBASHIRU Mr Richard said the investment demonstrates the government’s commitment to creating equal opportunities for citizens in both urban and rural areas through digital connectivity.

He noted that access to communication infrastructure has become increasingly important for education, healthcare, financial inclusion, trade, agriculture, and security. “Reliable communication services are no longer a luxury.

They are a critical driver of development and economic empowerment, especially for rural communities,” he said. The seminar heard that Tanzania has already made notable progress in expanding rural connectivity through UCSAF-supported projects implemented over the years.

As of April 2026, the government, through UCSAF, had signed agreements with telecommunications service providers to deliver communication services in 2,293 wards covering 5,489 villages with a population exceeding 32.5 million people. Of these, 1,979 wards covering 5,074 villages and serving more than 29.2 million residents are already receiving communication services through 2,151 completed towers.

Implementation remains ongoing in 301 wards, where an additional 301 towers are under construction to serve approximately 3.17 million people.

Mr Richard also revealed that a recently completed project involving 758 communication towers has already transformed the lives of about 8.5 million Tanzanians.

The project, officially launched by President Samia Suluhu Hassan on April 10, 2026, covered all 26 regions of Mainland Tanzania and involved the construction of towers in 1,400 villages across 688 wards. Morogoro received the highest number of towers at 71, followed by Tabora and Coast regions with 50 towers each.

Tanga received 43 towers, while Lindi got 42. Mr Richard said the government is now shifting its focus from expanding voice communication coverage to strengthening broadband and internet connectivity in rural communities. He said UCSAF has already upgraded 304 towers from 2G technology to 3G and 4G under the Tanzania Digital Project.

The upgraded towers include 148 operated by Yas, 69 by Vodacom, 55 by TTCL, and 32 by Airtel. In addition, UCSAF is implementing another project involving the upgrade of 62 towers from 2G to 3G and 4G technologies to improve internet speed and support digital services in rural areas.

Mr Richard said enhanced internet access is expected to boost online learning, telemedicine, e-commerce, mobile financial services, and digital government services. Beyond telecommunications infrastructure, UCSAF is also implementing projects aimed at strengthening digital access in education, broadcasting, and postal services.

The agency has invested in ICT equipment and laboratories for public schools, with 1,121 schools benefiting from the programme for Sh5.94 billion by June 2025. Mr Richard said another initiative targets schools serving students with special needs, with UCSAF supplying assistive ICT devices such as braille machines, Orbit readers, embossers, and digital voice recorders to 22 schools nationwide. The government has invested Sh1.84 billion in the programme and plans to support 10 more special needs schools during the 2025/26 financial year.

UCSAF has also continued supporting girls’ participation in technology through the annual Girls in ICT initiative, which has empowered 1,300 female students from public schools. The agency is preparing to roll out Phase 11 of the strategic communications expansion project targeting key national infrastructure corridors, including the Standard Gauge Railway (SGR), the Tanzania and Zambia Railway Authority (Tazara) railway line, border areas, and national parks.

The project is expected to involve the construction of 280 communication towers after completion of procurement processes currently underway through the National e-Procurement System of Tanzania (NeST). “I wish to reaffirm UCSAF’s commitment to supporting the government’s vision of building a digitally connected Tanzania through collaboration with the Ministry of Communications and Information Technology, telecommunications companies, and other stakeholders,” said Mr Richard.

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Arusha. The Court of Appeal has overturned decisions by the High Court and the Commission for Mediation and Arbitration (CMA) that had ruled in favour of eight former employees of Teofilo Kisanji University (TEKU), holding that they failed to exhaust internal appeal procedures before lodging their complaint.

The appellate court ruled that the employees erred in law by bypassing the university’s internal appeal mechanism and proceeding directly to the CMA. The judgment was delivered on Monday, May 11, 2026, by a panel comprising Justices Rehema Mkuye, Dr Eliezer Feleshi, and Dr Deo Nangela in Civil Appeal No.

1459 of 2024. After reviewing submissions and records from both sides, the court nullified the proceedings before the CMA and the High Court, saying the employees ought to have first sought redress through TEKU’s Staff Disciplinary Appeals Committee before filing their dispute externally. The appeal was lodged by the TEKU Board of Trustees and the university’s Vice Chancellor against Hamis Bakari, Nyanjige Mayala, Boany Dahaye, Edson Wikedzi, Ndinhesya Asukenie, Mponjoli Mwandamboi, Ishmail Mwambapa, and Amani Simbeye.

The dispute stemmed from the dismissal of the employees, who served as tutors and lecturers, on September 6, 2013, following allegations of misconduct. Among the accusations was the establishment of a private company, Grow Big Company, which allegedly engaged in activities that conflicted with the university’s interests and used TEKU’s address for its operations.

The employees were also accused of locking university leaders inside their offices. The fourth, sixth, and eighth respondents, Edson, Mponjoli, and Amani, alongside other unnamed employees, were further accused of unlawfully confining the then Deputy Vice Chancellor for Finance, Mr Israel Mwaikenda, in his office for four hours.

One of the respondents, Amani, was additionally accused of holding a press conference within university premises without authorisation. Following the allegations, a disciplinary hearing was conducted on August 29 and 30, 2013. The disciplinary committee found the employees guilty and recommended their dismissal, which took effect on September 6 that year.

Their dismissal letters granted them the right to appeal to the Staff Disciplinary Appeals Committee within five days. However, instead of pursuing that route, they filed a complaint before the CMA, arguing that their dismissal had been unlawful.

Before the CMA, the employees argued that the disciplinary process had been biased because the chairman of the disciplinary committee, Mr Mwaikenda, was also the complainant in the matter. They further contended that the committee had not been properly constituted because one member lacked the qualifications required under the law.

The employees also argued that the regulations they were accused of breaching did not officially exist and that the punishment imposed on them was discriminatory because other employees facing similar accusations had not been dismissed. TEKU defended the dismissals, maintaining that all disciplinary procedures had been followed and that the employees had been accorded an opportunity to defend themselves before the final decision was reached.

After hearing both parties, the CMA ruled that the dismissals were procedurally and substantively unfair. The commission awarded the employees compensation equivalent to 50 months’ salary, Sh60 million each in general damages, as well as other employment-related benefits.

However, TEKU challenged the ruling before the High Court. The High Court largely upheld the CMA’s findings that the dismissals were unlawful, but reduced the compensation from 50 months’ salary to 15 months and set aside the Sh60 million awarded to each employee as general compensation.

Dissatisfied with the outcome, TEKU appealed to the Court of Appeal. Judges’ findings During the hearing, the Court of Appeal identified two central legal issues, including whether the employees had failed to exhaust internal appeal procedures before approaching the CMA.

Justice Nangela said the issue was fundamental because the university had already established a formal mechanism for handling disciplinary disputes. The court held that internal dispute resolution mechanisms are not optional but constitute a mandatory legal requirement.

According to the judgment, internal procedures allow employers to correct errors before disputes are escalated externally, while also creating records that may later assist the courts. The Court of Appeal cited its earlier decisions in Bayport Financial Services versus Cresense Mwandele and Isaya Joseph Chawinga versus the Commissioner General of Immigration, emphasising that complainants must first exhaust internal mechanisms before seeking intervention from external bodies such as the CMA.

The judges found that the employees were fully aware of the existence of TEKU’s Staff Disciplinary Appeals Committee but deliberately chose not to lodge their appeal before it. “That omission had serious consequences and rendered the cases filed before the CMA premature,” the judgment stated.

On that basis, the Court of Appeal held that the proceedings before the CMA were invalid from the outset, rendering the High Court’s decision legally unsustainable. Invoking powers under Section 6(2) of the Appellate Jurisdiction Act, the court quashed all proceedings instituted before the CMA together with the High Court judgment in Labour Revision No.

36 of 2018. “All decisions, orders, and directives arising from those proceedings are hereby quashed,” the court ruled. However, the judges noted that the employees remain at liberty to pursue their claims before a competent court or authority.

The court further ordered that each party would bear its own costs. .

Dar es Salaam. Stakeholders have criticised provisions of the Political Parties Act, 2024, arguing that they undermine political freedoms, while the Office of the Registrar of Political Parties (ORPPs) maintains that the law is necessary to safeguard democracy and prevent internal party abuses.

Much of the criticism focuses on the wide-ranging powers granted to the Registrar of Political Parties (RPPs), including authority to deregister parties, enter party meetings, and demand access to internal party documents. Some of these concerns were raised during the drafting stage of the law, but Parliament, dominated by the ruling party, passed it despite objections from opposition legislators and democracy stakeholders, who warned it could weaken multiparty democracy and expand state control over political organisations.

The Act gives the RPPs powers to intervene in internal party affairs, including suspending members and halting political activities where parties are deemed to have breached the law. It also requires political parties to coordinate civic education activities with the ORPPs, a provision critics say limits independent public awareness efforts and restricts political space.

In addition, the law imposes strict auditing requirements on party finances and resources, with violations potentially attracting deregistration or prosecution of party officials. Critics argue that the RPPs should not have access to sensitive internal party deliberations, saying the office should be limited to registration functions.

They also raise concerns over institutional independence, noting that the RPPs is appointed by the President, who is also a political actor. However, Assistant RPPs, Mr Sisty Nyahoza, defended the framework, saying it is intended to ensure internal justice within parties and protect ordinary members from unfair practices.

The debate comes amid repeated actions by the ORPPs that have attracted public criticism, including warning letters issued to some parties over alleged legal breaches. Critics further argue that enforcement has been inconsistent, with opposition parties appearing to face closer scrutiny.

Functions of the RPPs The functions of the Office of the Registrar of Political Parties are set out in Section 4(5) of the Act. They include registering political parties, supervising nomination processes, and monitoring internal party elections.

The office also coordinates the Political Parties Council, monitors party income and expenditure, and manages the distribution of public funds to eligible parties. In addition, it is mandated to provide civic education on the legal framework governing political parties and the multiparty democracy system, as well as coordinate civic education activities conducted by political parties themselves.

Concerns over extensive powers Speaking to The Citizen sister newspaper Mwananchi, Legal and Human Rights Centre (LHRC) lawyer, Mr William Maduhu said the Act grants the RPPs excessive authority over internal party affairs. He argued that the office has moved beyond registration into active regulation of political parties, with strict penalties applied in some cases while similar situations are treated differently elsewhere.

According to him, this undermines internal party democracy and contributes to recurring political tensions. His concerns were echoed by political analyst, Dr Paul Loisulie, who said the legal framework does not sufficiently protect internal democracy within political parties.

He noted a gap between constitutional guarantees and political practice, in which rights exist in law but are constrained in practice. “From the Constitution to the law, political parties are granted freedom, but politics restricts it.

For instance, public rallies are allowed by law, but in practice they are restricted,” he said. However, political analyst, Magabilo Masambu, offered a different view, saying some contested provisions are explicitly provided for in law.

He cited Section 3(b), which he said gives the RPPs influence over internal party elections, and Section 3(g), which positions the office as a government adviser rather than an independent watchdog. Masambu also pointed to Sections 5A (i) and 5B (i), arguing that they limit parties’ freedom to engage with foreign organisations, receive training, and manage internal information without regulatory scrutiny.

He said the current framework does not guarantee a level playing field for all political actors and called for reforms to strengthen fairness and transparency. Law defended However, Mr Addo November defended the Act, saying it is well-structured and enables political parties to operate within a clear legal framework, including holding public meetings in accordance with the law.

He said the law also prohibits incitement to violence and threats against the Union, describing this as an essential safeguard for national stability. According to him, challenges arise not from the law itself but from its misuse by political actors who fail to adhere to legal requirements.

Calls for reform Despite differing views, the Political Parties Council Chairperson, Mr Juma Khatib said the law requires reform to reflect evolving political realities. He called for a comprehensive review involving stakeholders to identify provisions that need amendment.

He noted that in neighbouring Kenya, political parties are allowed to form coalitions and present joint presidential candidates, while in Tanzania, independent candidates are not permitted under the current system. ORPPs defends the law Responding to criticism, Mr Nyahoza said the Act strengthens, rather than weakens, democracy, arguing that critics misunderstand its purpose.

He said the law ensures internal party democracy by requiring candidates to emerge through structured party processes endorsed by members, preventing self-declared candidacies. Mr Nyahoza maintained that oversight is necessary to prevent internal injustices that would otherwise disadvantage ordinary party members.

He dismissed claims of overreach, saying the RPPs’ role was to ensure parties comply with their own constitutions. “When parties fail to follow their constitutions, members suffer and have nowhere to seek redress except through the ORPPs,” he said.

“There must be an institution to ensure parties follow their own rules,” he added. He further questioned critics of the law, saying, “How can you have the power to register a party but lack the power to deregister it? It is like employment, if you hire someone, you must also have the authority to dismiss them.

” Previous court ruling The matter has previously been tested in court. On March 25, 2022, the East African Court of Justice ruled in favour of Freeman Mbowe and others, including the late Seif Sharif Hamad, Zitto Kabwe, Hashim Rungwe, Salum Mwalimu, and the Legal and Human Rights Centre, in a case challenging the RPPs’ powers, finding that some provisions of the Act contravene the East African Community Treaty.

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Kagera. The Board of Directors of the Energy and Water Utilities Regulatory Authority (EWURA) has expressed satisfaction with the progress of the East African Crude Oil Pipeline (EACOP), saying construction is progressing in line with expectations.

Speaking during a visit to the project in Missenyi District, Kagera Region, EWURA Board Vice Chairman Ngosi Mwihava said the board was satisfied with the pace of implementation and compliance with regulatory requirements. The visit formed part of inspections aimed at assessing progress of the cross-border infrastructure project linking Uganda and Tanzania.

Mr Mwihava said EWURA, which issued the construction licence for the pipeline on the Tanzanian side, was monitoring compliance with environmental protection measures, local employment commitments and other agreed conditions. “EWURA will also be responsible for issuing operational licences once construction is completed.

We considered it important to conduct this inspection while implementation is still ongoing,” he said. He added that the progress achieved so far indicates oil transportation could begin within the planned timeframe.

Overall, the project has surpassed 70 percent completion, with construction continuing in several areas, including the Marine Terminal Tanks at Chongoleani in Tanga Region, where storage tank construction has been completed and testing is underway. Construction of the offshore jetty at Chongoleani for crude oil exports is also continuing.

Mr Mwihava said the project continues to generate employment opportunities and economic activities for communities living along the pipeline route. “We are pleased to see environmental matters being handled carefully.

Communities surrounding the project are also benefiting through social projects and employment opportunities,” he said. However, he urged contractors and companies involved in the project to continue complying with regulatory requirements, particularly on local participation.

He said the government expects more Tanzanians to benefit through employment, skills development and business opportunities linked to the project. The EACOP project involves the construction of a 1,443-kilometre crude oil pipeline from Hoima in Uganda to Chongoleani in Tanga Region, with the larger section passing through Tanzania.

The project is jointly owned by TotalEnergies, Tanzania Petroleum Development Corporation, Uganda National Oil Company and CNOOC. .

Dar es Salaam. President Samia Suluhu Hassan has held talks with Nigerian billionaire Aliko Dangote at the State House in Dar es Salaam amid ongoing regional debate over the location of a proposed multi-billion-dollar oil refinery in East Africa.

Although the State House has not, by 13:00 East African time, disclosed details of the meeting, photographs released during the meeting show the two sides engage in discussions. Mr Dangote’s visit comes at a time when there is debate in East Africa on which country would host the proposed $15 billion to $17 billion oil refinery with a planned capacity of 650,000 barrels per day.

President Samia Suluhu Hassan holds talks with Nigerian businessman and Dangote Group Founder and Chairman Aliko Dangote at the State House in Dar es Salaam on May 16, 2026. The debate intensified after Kenyan President William Ruto revealed in Nairobi that the refinery could be built in Tanga, Tanzania. Addressing the Tanzania Parliament in Dodoma on May 5, 2026, President Ruto described the Port of Tanga as an ideal location for the project, citing its strategic position and the need to strengthen regional integration.

However, he maintained that the final decision on the site would rest with private investors led by Mr Dangote. In a further twist, Mr Dangote told the Financial Times on May 10, 2026, that he was leaning towards Mombasa, Kenya, citing the city’s deep-water port, stronger logistics infrastructure and growing regional demand.

The proposed refinery is expected to enhance East Africa’s energy security and reduce dependence on imported petroleum products from the Middle East. The facility is designed to process crude oil from regional producers, including Uganda and Kenya, as well as imported crude for markets stretching to Ethiopia and the Democratic Republic of Congo.

The development also comes as Tanzania and Uganda finalise the East African Crude Oil Pipeline (EACOP), which runs from Hoima in Uganda to Chongoleani in Tanga Region. Uganda’s Hoima oil fields are expected to produce about 230,000 barrels of oil per day once commercial production begins later this year.

President Samia Suluhu Hassan holds talks with Nigerian businessman and Dangote Group Founder and Chairman Aliko Dangote and his delegation at the State House in Dar es Salaam on May 16, 2026. EACOP is jointly owned by TotalEnergies with a 62 percent stake, while the Tanzania Petroleum Development Corporation and the Uganda National Oil Company each hold 15 percent. China National Offshore Oil Corporation owns the remaining 8 percent.

However, in a recent interview, Dangote said he was leaning more towards Mombasa Port in Kenya for the mega investment. He cited the port’s depth and size, as well as Kenya’s relatively larger economy and fuel spending capacity as giving it the competitive edge over Tanzania’s Tanga Port.

Dangote maintained that the final decision on the site would rest on what Kenyan President Ruto decides. .

Kigali. African organisations are rapidly embracing artificial intelligence (AI), but many are still failing to convert experimentation into large-scale business growth, according to a new report released by PricehousewaterCoopers (PwC).

The findings were presented during the Africa CEO Forum 2026 in Kigali on Friday, May 15, 2026, where PwC executives warned that while confidence in AI remains high across the continent, many organisations are struggling to move beyond pilot projects into full-scale implementation. The report, titled Decoding ROI from AI in Africa, reveals that 82 percent of organisations across the continent are already running AI pilot projects.

However, few have succeeded in scaling the technology across their operations to generate measurable returns. The findings suggest that although African business leaders remain optimistic about AI, implementation continues to lag behind global competitors.

“Africa’s challenge is both adopting AI at scale and implementing it fast enough to remain competitive,” said PwC Africa chief executive officer, Mr Dion Shango, during the release of the report. “While more than 82 percent of organisations are running AI pilots, this is not yet translating into enterprise-wide impact.

The organisations that will succeed are not those running the most pilots, but those scaling the right AI solutions to transform how they create value,” he added. The study surveyed 1,217 senior executives from 25 sectors globally, including 85 organisations in Africa, and found that the continent’s most AI-ready companies generate 7.

2 times greater AI-driven performance than others. According to the report, African organisations continue to invest cautiously in AI, with average spending standing at only two percent of annual revenue, compared with five percent among global AI leaders.

Only 32 percent of African firms believe their AI investment is sufficient to achieve long-term goals. For countries such as Tanzania, where digital banking, mobile money and technology-driven services continue to expand, the report raises questions about whether businesses are moving fast enough to remain competitive in a rapidly evolving global economy.

PwC noted that many African companies are still using AI mainly to improve productivity and reduce costs instead of creating new products, services and markets. “The real opportunity lies in using AI to unlock growth, expand into underserved markets and create entirely new business models,” said PwC West Market consulting and risk services leader, Mr Olufemi Osinubi.

The report argues that Africa’s biggest opportunity may lie in applying AI to solve cross-sector challenges in industries such as agriculture, healthcare, finance, logistics and energy. It highlights how financial inclusion increasingly depends on collaboration between banks, telecommunications firms and retailers, while healthcare delivery is becoming more connected to data systems, insurance and digital payment platforms.

However, PwC says most African organisations are still operating within traditional industry boundaries instead of building wider AI ecosystems. “Africa’s structural complexity positions it well for AI-enabled convergence if organisations design for ecosystems rather than sectors,” said PwC Nigeria chief AI officer, Mr Christopher Ogirri.

The report also identifies weak investment in digital infrastructure and governance frameworks as major obstacles to scaling AI across the continent. Only 41 percent of African organisations surveyed reported having clearly defined AI roadmaps, while just 37 percent said they had formal responsible AI and risk management frameworks in place.

Many organisations also continue to face challenges linked to outdated data systems, limited cloud adoption and shortages of AI specialists. Despite these gaps, the report says Africa possesses one key advantage: a workforce increasingly ready to adopt AI technologies.

According to PwC’s workforce survey, 64 percent of African employees have already used AI tools in their jobs over the past year, compared with a global average of 54 percent. In addition, 76 percent believe generative AI improves the quality of their work, while 72 percent expect it to boost productivity over the next three years.

PwC Kenya technology consulting partner, Mr Laolu Akindele, said many workers are already more open to AI than business leaders themselves. “The workforce is ahead of the organisation in many cases.

Employees are ready to use AI, but leaders are still building trust in AI-driven decisions. Bridging that gap is critical to scaling adoption,” he said.

The report warns that African firms risk falling further behind if they continue treating AI as isolated experiments instead of tools for long-term transformation and growth. PwC estimates that more than $7 trillion in global value could shift across industries as companies reinvent their business models using AI and other emerging technologies.

For Tanzania and the wider East African region, the report says the shift could create opportunities for businesses investing in AI-powered financial services, agricultural technology, logistics, healthcare and education systems. “Africa’s AI story is not one of catching up.

It is one of leapfrogging if we act with conviction,” said Mr Shango. “The companies bold enough to invest at scale and embrace the technology will define the next phase of growth across the continent.

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Arusha. Air Tanzania Company Limited (ATCL) is set to launch direct flights between Tanzania and Russia through Moscow later this year.

The move is expected to boost tourism, business travel and economic ties between the two countries. The planned route will connect Dar es Salaam, Zanzibar and Moscow via Seychelles using the airline’s Boeing 787 Dreamliner aircraft.

The aviation plan is among 12 major agreements reached between Tanzania and Russia during the Third Session of the Tanzania-Russia Intergovernmental Commission on Trade and Economic Cooperation held in Arusha on Saturday, May 16, 2026. Apart from aviation, the two countries also agreed to strengthen cooperation in agriculture, energy, education, science and technology, transport, logistics and tourism. During the meeting, both sides identified several strategic areas aimed at expanding trade, investment and economic development between Tanzania and Russia, with more than 22 additional agreements expected to be finalised and others scheduled for signing during President Samia Suluhu Hassan’s official visit to Russia in June this year.

Speaking after the signing of the first two agreements, the Minister of State in the President’s Office for Planning and Investment, Prof Kitila Mkumbo, said discussions on the direct flights had reached the final stages, with operations expected to begin before the end of the year. “We are now at an advanced stage of discussions to see ATCL operating direct flights from Dar es Salaam and Zanzibar to Moscow, and we believe this will further increase the number of tourists visiting Tanzania,” Prof Mkumbo said.

He said the flights will play a major role in promoting tourism and trade between the two countries, especially as Russia continues to emerge as one of Tanzania’s fast-growing tourism markets, particularly for Zanzibar beach holidays and safari tourism. Currently, most travellers between Tanzania and Russia rely on connecting flights operated by airlines such as Qatar Airways, Emirates and Turkish Airlines.

Prof Mkumbo said the two countries had also agreed to cooperate in fertiliser production, natural gas development, nuclear energy and investments in ports and transport infrastructure. In the education sector, he said more than 20,000 Tanzanians have studied in Russia over the years, producing professionals in health, agriculture and education.

Among the two agreements already signed is a language cooperation deal that will see Kiswahili taught in Russian universities, while the Russian language will also be introduced in Tanzanian educational institutions. Another agreement involves Muhimbili University of Health and Allied Sciences partnering with two Russian institutions in healthcare cooperation and pharmaceutical production.

Russia’s Minister for Economic Development, Maksim Reshetnikov, said trade between Tanzania and Russia has continued to grow rapidly, reaching its highest level in 2025 after increasing by nearly 20 percent. He said Russia currently exports fertiliser, wheat and cooking oil to Tanzania while importing coffee, tea, tobacco, cashew nuts and fruits from Tanzania.

The minister added that cooperation in transport and infrastructure remains critical in expanding trade and investment, making the planned direct ATCL flights to Moscow an important milestone in strengthening economic relations between the two countries. For his part, Tanzania’s Minister for Foreign Affairs and East African Cooperation, Mr Mahmoud Thabit Kombo, said President Samia Suluhu Hassan is expected to make a state visit next month to Moscow and Saint Petersburg, where she will also attend the Russian International Business Forum.

He said the visit demonstrates the growing momentum in relations between the two countries and reflects their shared commitment to strengthening economic diplomacy and expanding engagement between their people, institutions and private sectors. .

Kigali. African governments are being urged to invest in the continent’s own satellite and digital infrastructure as satellite internet rapidly emerges as the next frontier of global connectivity.

A new report released in Kigali, Rwanda, on Friday, May 15, 2026, by the Africa CEO Forum and Askya Investment Partners says Low Earth Orbit (LEO) satellite networks could transform education, healthcare, trade and financial inclusion across Africa, particularly in remote areas where traditional telecom infrastructure remains limited. However, the report warns that unless African countries move quickly to strengthen regulation, invest in local infrastructure and coordinate policies, the continent risks becoming dependent on foreign-controlled digital systems.

The report, titled Telecoms Offshored The Strategic Challenge of Satellite Internet for African Economies, argues that satellite connectivity should become part of Africa’s long-term digital transformation strategy rather than simply another imported service. For East African countries such as Tanzania, Kenya, Rwanda and Uganda, where governments are pursuing ambitious digital economy agendas while millions remain offline, the debate is becoming increasingly important.

The report says satellite technology could help bridge connectivity gaps in rural communities, support emergency communications during disasters and improve internet access for schools, hospitals and businesses located far from fibre networks and mobile towers. However, it argues that Africa’s biggest challenge is no longer simply network coverage.

According to the findings, nearly 87 percent of Africans already live within mobile broadband coverage, yet only 27 percent actively use mobile internet services, leaving a usage gap of around 60 percentage points. The report attributes the gap to high smartphone prices, costly internet bundles and limited digital skills, factors that continue to leave millions disconnected despite expanding network infrastructure.

Askya Investment Partners founder and managing partner, Mr Babacar Seck, said Africa is at a critical turning point in shaping its digital future. “Africa is at a genuine inflection point in its digital journey.

Satellite connectivity can help expand coverage, strengthen resilience and economic dynamism if it is integrated through partnerships that complement terrestrial networks,” he said during the Kigali briefing. The report argues that satellite internet should not replace existing telecom operators, fibre optic networks or mobile infrastructure, but instead complement them through what it describes as a hybrid connectivity model.

Under such a model, satellite systems would work alongside terrestrial telecom companies to expand internet access in underserved areas while preserving local investment and strengthening Africa’s digital ecosystem. “One of the central findings of the report is that a hybrid model is likely to be the best approach going forward, combining stronger onshore telecoms with fibre and mobile infrastructure,” said report co-author, Mr Abdullahi Tsanni.

The report notes that Africa’s telecom sector has already attracted around $220 billion in investment and contributes nearly 7.7 percent of the continent’s GDP.

The industry also supports about eight million formal jobs and generates roughly $30 billion annually in taxes. However, the report warns that some offshore satellite operators currently operate under lighter licensing, taxation and infrastructure obligations than traditional telecom companies, despite competing in the same market.

It says this could weaken local telecom firms that continue investing heavily in fibre networks, towers and rural coverage expansion across African countries. Mr Seck said the discussion should not be viewed as opposition to satellite technology, but rather as a broader debate on how Africa can build a stronger and more self-reliant digital economy.

“Satellite internet is the future. There is no world in which Africa should regulate out satellite internet.

We need to leverage it where it is most effective,” he said. The report also argues that Africa must move beyond simply consuming digital services developed elsewhere and start investing in African-owned digital infrastructure.

It recommends stronger investment in fibre optic networks, data centres, internet exchange points and eventually African-controlled satellite systems capable of supporting the continent’s long-term digital ambitions. The authors argue that digital sovereignty increasingly depends on who controls connectivity infrastructure, data systems and communication networks.

The report further recommends harmonising licensing systems, spectrum management rules and consumer protection standards across African regions to strengthen the continent’s bargaining power as satellite internet expands. Africa CEO Forum chief executive, Mr Amir Ben Yahmed, said innovation alone would not guarantee Africa a stronger digital future unless governments establish clear and enforceable rules.

“Our message is simple: the technology is welcome, but it must compete under clear, fair and predictable rules,” he said. The report also calls on African governments to strengthen regulators so they can better supervise rapidly evolving digital technologies and negotiate more effectively with global technology firms entering African markets.

It says stronger regional coordination will be critical in ensuring Africa develops connectivity systems that expand access while protecting local investment, jobs and public revenues. The report concludes that while satellite internet could unlock new opportunities in education, e-commerce, agriculture, banking and healthcare, the real challenge for Africa is whether the continent will actively shape the future of digital connectivity or remain dependent on systems controlled elsewhere.

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