THE POTENTIALITY OF E-COMMERCE INNOVATION IN TANZANIA

The growth of ICT utilization in Tanzania particularly the internet and mobile phones has influenced the rate of online interaction and communication among the vast populace. The growth of internet usage in Africa has led to the revolution of communication, commerce, and development into a globalized world. Due to the potentials of the internet, many individual users and content providers are at the critical stage of creating more connections in the business.

Tanzania, in recent years, has experienced a tremendous digital revolution due to telecommunication developments. Many entrepreneurs from both within and outside the country have greatly exploited the opportunity to invest through e-commerce as the way of generating income and improving service delivery to customers and this leads to growth of the economy.

According to the Tanzania Communications Regulatory Authority (TCRA) report of 2014, there is approximately an increase of about 9 million internet users in the country. This proves that the communication technological development in the country has accelerated and attracted more users compared to the past years when the internet use was very low.

Moreover, the influx of smart phones and other internet supporting devices like portable computers have facilitated online business due to user-friendly features and low cost of internet use in the country. The wide use of smart phones by the majority in the country has made it easy for the investors to get connected with customers wherever they are, hence overcoming the distance barriers.

Furthermore, the booming of e-commerce opportunities and services in the country has brought about several advantages which can be seen through multiple entrepreneurship tenures that keep the online business growing day to day. Some of the companies that have emerged in the country to utilize business opportunities include Jovago.com and many others in the traveling, insurance and banking sectors just to mention few. Some of the changes which have been created through e-commerce in Tanzania can be inscribed as follows;

Less expense of advertising and marketing: The Tanzania Trade Development Authority argues that, “The essence of e-commerce has helped business enterprises or suppliers with marketing services online by enabling them to place their products and services before their target customers, this potential opportunity helps service providers attract a vast number of consumers by speeding up the flow of information from their end to other heterogeneous consumers”. The break has helped entrepreneurs to overcome and escape from the huge costs that come with traditional media advertising such as televisions, radios and newspapers.

Physical and digital goods: People are able to sell and buy goods or services online. The essence of online services has removed the middlemen, as service providers and consumers are linked via internet hence removing the previous barriers of middlemen. With e-commerce, prices and services can be seen right away and agreement can be made and reached in no time.

Getting reliable services right away: Businessmen and consumers have succeeded to overcome the distance bottleneck in selling and buying goods or services. “It is now easy for an individual to sell and buy a product or service inside and outside Tanzania. One can order a service regardless of location, all that is needed is internet access. For example, Jovago Tanzania offers plenty of opportunity and services for people around the globe to book hotels, and travel services in their prospective targeted destination, thus easing your vocations to the maximum”  Andrea Guzzoni , Country Manager of  Jovago Tanzania argued.

Interconnectedness of consumers and service providers: With e-commerce, the businessmen can easily attend to numerous consumers at the same time and also provide immediate feedback. Also electronic commerce is an easy way of receiving questions about product and services, also improving response to customer queries. It also provides an easy opportunity to work even beyond the normal service working hours.

Hence, e-commerce is accelerating the growth of economies at an individual level, company and state at large through GDP. It has also led to the improvement of service delivery to consumers and easily meeting consumer’s demands and satisfaction