Latest studies have shown that Tanzania have the ability to participate in e-commerce, but there is need for improved national image to bring in the element of trust and discipline within, and before the international communities.
Furthermore, there is need to encourage public and private initiatives in the provision of the basic infrastructures for improved motivation and opportunities for e-commerce implementation.
Tanzania has an area of 945,000 sq km (365,000 sq miles) and a population of about 40 million, with Dar es Salaam as commercial capital and home to many government institutions and diplomatic missions. According to the World Bank data in the last decade for instance, the penetration rate of personal computers has by a factor of 10, while the number of mobile phone subscribers by a factor of 100!
These figures are clear proof that online retailing have future in Tanzania. But, lack of sufficient system security, reliability, standards and communication protocols, insufficient telecommunication bandwidth and number of other factors are still major barriers for the success of online retailing in the country.
There is a lot of good examples of online retailing around the world, and Tanzanian business people could find rather good example in, for example, http://www.zalando.co.uk.
Small websites that cater to niche markets have the best chance of prospering in Tanzania. That is, as long as you take care to ensure that your customers’ shopping experiences aren’t marked with too many ‘potholes’.