The Impact of Mobile Telecommunications on Economic Growth in Tanzania.

The advancements in the mobile telecommunication industry transform communications-aligned devices into service delivery mechanisms. In Tanzania, telecommunication developments led to an abrupt increase in the number of subscribers and telecommunications expenditures. Despite the increase in the number of subscribers and expenditures in mobile telecommunications services, there is limited information on their contributions to economic growth in Tanzania. This study examined the impact played by mobile telecommunications services on the economic growth of Tanzania. The work centred on appraising the effects of mobile voice call, text message, internet and mobile money services on the growth of GDP per capita of Tanzania. Time series data from 2014 to 2023 was employed. The endogenous growth framework through the macro production model examined the influence of variables. Micro telecommunications investment demand models are jointly estimated to control the reverse impact of economic growth. The results revealed that mobile voice calls, internet, and mobile money services contributed positively to the GDP per capita of Tanzania. To realise countrywide development, Tanzania should strengthen penetration of mobile voice calls, internet and mobile money services in rural areas. Thereafter, Tanzania should enhance implementations of the ICT policy to transform the country into ICT ICT-driven middle-income economy through telecommunications. Moreover, Tanzania should strategically improve mobile money services platforms as an effective roadmap to the cashless economy.