Africa’s digital transformation is entering a new phase in which expanding mobile connectivity alone will not be enough to meet growing demand for cloud services, artificial intelligence and data-driven businesses, Vodacom Tanzania executives have said.
They said the continent will need stronger fibre networks, data centres, reliable energy and cross-border infrastructure to support businesses and public institutions as digital services become increasingly central to economic activity.
The remarks were made during the ITW & Datacloud Africa 2026 conference held in Nairobi from September 7 to 10, bringing together players in telecommunications, data centres, cloud computing, artificial intelligence, investment, energy and regulation.
Nguvu Kamando, Director of Vodacom Business, said connectivity remained the foundation of Africa’s digital economy, but its economic value would increasingly depend on the services and businesses built on top of it.
“Connectivity is everything. It is the foundation of the digital transformation we are looking for across Africa. But the real opportunity is what we build on top of it to drive Africa’s digital economy,” Mr Kamando said.
He said businesses were increasingly relying on cloud computing, digital platforms, data analytics and artificial intelligence to improve operations and compete in local, regional and international markets.
Mr Kamando said technology companies should also focus on developing practical solutions for sectors such as agriculture, healthcare, mining and education.
He said artificial intelligence could improve efficiency, cybersecurity, network performance and decision-making, but its adoption needed to be secure and responsible.
“Our role is beyond connectivity, beyond infrastructure, and as we at Vodacom say, ‘More than a Network,’ driving development and enabling the digital economy,” he said.
The conference also highlighted the need to take digital infrastructure beyond major cities as businesses and consumers in peri-urban and rural areas increasingly adopt digital services.
Aashiq Shariff, Managing Director of Fast Fibre, said fibre investment needed to keep pace with the expansion of cloud services, data-intensive applications and 5G.
He called for regulatory clarity and greater harmonisation across East Africa to facilitate infrastructure investment and allow digital businesses to operate more efficiently across borders.
“The opportunity before East Africa is not simply to build more infrastructure. It is to build the right infrastructure, in the right places, supported by the right investment environment,” Mr Shariff said.
For Tanzania, the issue is particularly relevant as the country expands digital services while seeking to increase access to affordable and reliable internet among businesses and households.
Andrew Lupembe, Network Director at Vodacom Tanzania, said reliable and resilient networks would become increasingly important as more economic and social activities move online.
He said Vodacom Tanzania was implementing the second phase of its network revitalisation programme, which is intended to incorporate newer technologies and improve service quality.
According to Mr Lupembe, broadband coverage in Tanzania has reached 94 percent, while smartphone penetration stands at 44.7 percent.
The difference between network coverage and smartphone penetration highlights a challenge for the digital economy: having network infrastructure available does not necessarily mean that all potential users have the devices needed to access digital services.
Increasing smartphone ownership, alongside affordable data services and digital skills, would therefore be important if more Tanzanians are to benefit from the country's expanding digital infrastructure.
Mr Lupembe also pointed to data centres as an increasingly important part of Africa's digital infrastructure.
As businesses move more operations to cloud platforms and demand for data processing grows, data centres will require stable power supplies and supporting fibre connectivity.
“Energy, fibre, mobile networks, data centres, subsea cables and cloud infrastructure must work together to deliver the reliability that modern businesses and societies require,” he said.
The Nairobi discussions placed greater emphasis on the links between different parts of the digital ecosystem rather than treating telecommunications infrastructure in isolation.
For Tanzania, the expansion of fibre and mobile networks will therefore need to be matched by investment in data centres, cloud infrastructure, energy and digital skills if businesses and consumers are to fully benefit from the country's growing digital economy.