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Tanzania Launches AI Training Initiative for Small Businesses

Nia Kamau Nia Kamau 884 views
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The Tanzanian government launched the AI Accelerate Project on Tuesday, targeting practical digital skills for small and medium enterprises. ICT Commission Director General Dr. Nkundwe Mwasaga announced the program in Dar es Salaam. The initiative aims to position artificial intelligence as a driver of productivity and job creation across the economy. Employers will work with the government to equip businesses with these new capabilities. The program represents a significant expansion of existing SME training efforts. Tanzania has approximately 3.2 million SMEs according to 2022 National Bureau of Statistics data. These businesses contribute about 27% to the country's GDP. The government allocated 15 billion Tanzanian shillings (approximately $6.4 million) to the project. Implementation will occur over 18 months through regional training centers. The ICT Commission will oversee the program with support from the Ministry of Industry and Trade. Training will focus on practical applications rather than theoretical concepts. Businesses will learn to use AI tools for inventory management and customer service. The program also addresses digital payment systems and online marketing strategies. Dr. Mwasaga emphasized the need for Tanzanian businesses to compete regionally. He noted that neighboring Kenya and Rwanda have similar digital initiatives. The East African Community's digital integration plans require member states to develop tech capabilities. Tanzania's program aligns with these regional economic goals. The government plans to train 5,000 SME owners and employees in the first phase. Subsequent phases will expand to 20,000 participants by 2025. Training centers will operate in Dar es Salaam, Mwanza, and Arusha initially. The ICT Commission will evaluate results quarterly and adjust the curriculum as needed. ## Why It Matters Tanzania's SME sector faces digital transformation challenges. Only 23% of Tanzanian SMEs use digital tools according to a 2023 World Bank survey. This compares to 45% in Kenya and 38% in Uganda. The training initiative addresses this digital divide directly. Practical AI skills could help businesses reduce operational costs. Inventory management improvements might save businesses up to 15% annually. Better customer service tools could increase sales by 10-20% for participating firms. The program also supports Tanzania's broader economic goals. The government aims to increase the digital economy's contribution to GDP from 3% to 10% by 2025. SME digitalization is crucial for achieving this target. Successful implementation could create 50,000 new jobs in the tech-enabled sectors. The training aligns with Tanzania's Digital Economy Strategy 2023-2028. This strategy emphasizes skills development and infrastructure investment. The AI Accelerate Project represents the skills component of this larger plan. Regional competition makes this initiative timely. Kenyan SMEs already access similar programs through the Kenya Private Sector Alliance. Rwanda's Digital Ambassadors program has trained over 5,000 business owners since 2021. Tanzania's program helps level the playing field for local businesses. ## What Businesses Should Watch SME owners should monitor registration dates for the training program. The ICT Commission will announce application periods through its website and local business associations. Businesses should prepare basic digital infrastructure before applying. This includes reliable internet access and basic computer equipment. The government may provide limited equipment support for qualifying businesses. Companies should identify specific operational challenges that AI might address. Training effectiveness increases when participants have clear business problems to solve. Businesses should track implementation partners as they are announced. The ICT Commission will collaborate with private sector trainers and technology providers. These partnerships might offer additional resources beyond the core program. Regulatory developments around data protection and digital transactions matter too. Tanzania's Personal Data Protection Act 2022 establishes rules for business data handling. AI applications must comply with these regulations. Businesses should watch for sector-specific adaptations of the training. The program may develop specialized modules for agriculture, retail, and manufacturing. These tailored approaches could offer greater value than generic training. Funding opportunities beyond the initial training deserve attention. The Tanzania Investment Centre offers digital transformation grants up to 100 million Tanzanian shillings ($42,700). Businesses completing the AI training might qualify for these funds. Regional market access represents another consideration. The African Continental Free Trade Area creates new opportunities for digital businesses. Tanzanian SMEs with strong AI capabilities could export services to other African markets. The program's success metrics will guide future government support. Businesses should participate in evaluation surveys to ensure the program meets their needs. Continuous feedback helps shape more effective training in subsequent phases.

Companies Mentioned

ICT CommissionMinistry of Industry and TradeTanzania Investment Centre

TOPICS

TanzaniaSME trainingAI Accelerate Projectdigital skillsICT Commission