Development of ICT sector parameters and Indicators

The case of ICT projects in Tanzania

Master's Thesis, 2012

136 Pages




Declaration and Copyright




List of Tables

List of Figures

List of Acronyms

1.1 Background
1.2 Statement of the Problem
1.3 Objectives of the Study
1.3.1 General Objective
1.3.2 Specific Objectives
1.4 Research Questions
1.5 Significance of the Study
1.6 Scope and Delimitations

2.1 Introduction
2.1.1 Trend in growth of hardware acquisition and usage since the 1960s
2.1.2 Early Problems and Challenges of ICT Development in Tanzania Obsolescence of Existing Computers Collapse of the East African Community Lack of Informatics Education and Training in Tanzania
2.2 ICT Policy in Tanzania
2.3 General Overview of ICT Indicators
2.3.1 Country Experiences in ICT Indicators and Related Issues
2.3.2 The link between ICT and Sustainable Development
2.3.3 The Role of ICT for the Performance of SMEs in East Africa
2.3.4 Vision 2025 and ICT
2.4 International Efforts in Developing ICT indicators
2.5 Partnership on Measuring ICT for Development

3.1 Introduction
3.2 Reviewing of Researches with Similar Methodology to this Research
3.3 Sample Size
3.4 Data Collection and Methods
3.5 Data Analysis
3.5.1 Data Validity and Reliability Test
3.5.2 Exploratory and Confirmatory Factor Analysis
3.5.3 Exploratory Factor Analysis
3.6 Factor Reduction Process and CFA
3.6.1 Criteria for Extracting Factors
3.6.2 Factor Analysis Methods
3.6.3 Communalities
3.7 Model Specification and Identification for CFA
3.8 Goodness of fit and Decision Relationally

4.1 Introduction
4.2 Profile of Respondents
4.3 Data Reliability
4.4 Frequency Analysis for ICT Sector and Indicators by Category
4.4.1 Frequency Analysis for All ICT sectors
4.4.2 Frequency Analysis of ICT Indicators for ICT Policy
4.4.3 Frequency Analysis of ICT Indicators for Education
4.4.4 Frequency Analysis of ICT Indicators for Household and Individuals
4.4.5 Frequency Analysis of ICT Indicators for Business
4.4.6 Frequency Analysis of ICT Indicators for Tourism
4.4.7 Frequency Analysis of ICT Indicators for Manufacturing Producing Industries
4.4.8 Frequency Analysis of ICT Indicators for ICT Infrastructure and Access
4.4.9 Frequency Analysis of ICT Indicators for Agriculture
4.4.10 Frequency Analysis of ICT Indicators for Heath
4.4.11 Frequency Analysis of ICT Indicators for Trade and Service Sector
4.5 Factor Reduction Process
4.5.1 Communalities
4.5.2 Total Variance Explained
4.5.3 Identification and Categorization of potential ICT Indicators
4.5.4 CFA Structural Model Results
4.5.5 The Output Structural Model
4.6 Discussion of Results
4.6.1 Correlations between ICT Categories
4.6.2 Regression between Categories and Their ICT Indicators
4.6.3 Square Multiple Correlations
4.6.4 Model Fit and Properties
4.6.5 Confirmed ICT Indicators and Their Categories
4.6.6 Answers to Research Questions



Appendix 1: Country’s Experiences in Development of ICT Indicators

Appendix 2: Rotated Component Matrix

Appendix 3: Self-administered Questionnaire

Appendix 4: Structural Model Results


Table 2.1 Distribution of Computers by Sector, 1986

Table 2.2: ICT indicators used in SD context and their classifications

Table 2.3 Criteria for Accepting Indicators

Table 2.4: Indicators for Policy Category

Table 3.1: Notation for Confirmatory Factor Analysis

Table 4.1: Questionnaires Responded from each Surveyed Organization/Firm ...

Table 4.2 Reliability Statistics

Table 4.3 Frequency Analysis for All ICT sectors

Table 4.4 Frequency Analysis for ICT Policy category

Table 4.5 Frequency Analysis for Education category

Table 4.6 Frequency Analysis for Household and Individuals category

Table 4.7 Frequency Analysis for Business category

Table 4.8 Frequency Analysis for Tourism category

Table 4.9 Frequency Analysis for Manufacturing Producing Industry category

Table 4.10 Frequency Analysis for ICT Infrastructure and Access category

Table 4.11 Frequency Analysis for Agriculture category

Table 4.12 Frequency Analysis for Heath category

Table 4.13 Frequency Analysis for Trade and Service category

Table 4.14 Communalities

Table 4.15 Total Variance Explained

Table 4.16 Identification and Categorization of ICT Indicators

Table 4.17: Fit Indices and Their Acceptable Thresholds

Table 4.18 Confirmed ICT Indicators in CFA


Figure 2.1: Number of Computer Systems in Tanzania, (Sheya Koda, 1987

Figure 2.2: Number of microcomputers in Tanzania, (Sheya and Koda, 1987)

Figure 2.3: Components of Sustainable Development (Stork, 2007)

Figure 3.1: Conceptual Research Design - Methodology Structure

Figure 3.2: Path Diagram for CFA

Figure 4.1: Profile of Respondents

Figure 4.2: The Output Structural Model


The undersigned certify that he has read and hereby recommends for acceptance by the University of Dar Es Salaam a dissertation titled: Development of ICT Sector Parameters and Indicators, a partial fulfilment of the requirements for the Degree of Master in Engineering Management (Industrial and Informational Technology Management) of the University of Dar Es Salaam.

Prof. M. A. M Victor



I, Andrew Raphael Kagwa, declare that this dissertation 1s my original work and that it has not been presented and will not be presented to any other University for a similar or any other degree award.


This dissertation is a copyright material protected under the Berne Convection, the Copyright Act 1999 and other international and national enactments, in that behalf, on intellectual property. It may not be reproduced by any means, in full or in part, except for short extracts in fair dealing; for research or private study, critical scholarly review or discourse with an acknowledgement, without the written permission of the Directorate of Postgraduate Studies, on behalf of both the author and the University of Dar es Salaam.


I have done my Masters of Engineering Management at University of Dar es Salaam in the department of Mechanical and Industrial Engineering and I have the honour to thank the following for their contribution that enabled me to write my dissertation properly.

Firstly, I would like to thank the staff members of Department of Mechanical and Industrial Engineering for supporting me in different areas of the study such as polishing the title of research and research methodology and without forgetting fellow MEM students for positive collaboration.

Secondly, I would like to appreciate the support from different stakeholders who participated in this research by providing sincere responses to questionnaire and for their comments and advice.

Lastly, I have the honour also to thank my supervisor Prof. M. M Victor from Open University of Tanzania for providing me with all necessary materials, supervision and kind advisory.


This work Is dedicated to my late father Raphael Leke and to other members of Leke’s family for their endless love and encouragement they have given to me during the whole period of my study.


The existence of national ICT policy would indicate demand for indicators; however, no sufficient information on indicators used in the national policy is available yet. This poses the challenge in monitoring and evaluation of ICT Projects and not only that, but it is also difficult to measure the status quo of ICT development and digital divide among societies.

This dissertation was both exploratory and descriptive in nature; therefore, it utilized both quantitative and qualitative research approaches. A survey conducted used purposive sampling with informants being stakeholders with basic IT knowledge and IT personnel. Data was collected through a survey of 45 organizations in both techniques of face-to-face and online, with a total of 80 respondents. Data collected examined the level of importance or applicability of 90 ICT indicators in their respective 10 sector parameter.

Findings indicated that, 50 indicators (55%) out of 90 are significant and confirmed to be highly correlated with new 6 ICT categories (sector parameters) out 10 (60%) which were proposed in the literature review. Infrastructure Readiness category with 17 indicators, ICT education category with 11 indicators, ICT penetration category with 7 indicators, Digital Access category with 7 indicators, ICT policy Implementation with 5 indicators and Information Access with 3 indicators. The study also found that ICT Policy exists in Tanzania with only 10 key ICT statistical indicators. The study recommends revision of ICT indicators, to include ICT Security Policy, ME program in the Policy and to undertake Situational Analysis.

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1.1 Background

Information and Technology (IT) is the term used to describe the items of equipment (hardware) and computer programs (software) that allow us to access, retrieve, store, organize, manipulate and present information by electronic means. Personal computers, scanners and digital cameras fit into the hardware category. Database storage programs and multimedia programs fit into the software category. (Barsaga, 2002).

According to Blurton (1999), ICTs stand for information and communication technologies and are defined as a “diverse set of technological tools and resources used to communicate, and to create, disseminate, store, and manage information”. These technologies include computers, the Internet, broadcasting technologies (radio and television), and telephony. Other technological resources include computer and network, hardware and software; as well as the equipment and services associated with these technologies, such as electronic mail, text messaging and radio broadcasts. (MoEVT, 2008).

ICT sector parameter under this context is considered as any category or sector whereby ICT can be used to improve efficiency, productivity and effectiveness of any activity associated with particular application. For instance in education sector, teaching can be enhanced through computer skills; in manufacturing or industry sector, automation or computerized systems can increase productivity and efficiency.

An indicator is a measuring device. It defines concepts in terms of the measurements and data is possible to collect and analyse. It is either a statistic, fact (quantitative) or other forms of evidence, perception (qualitative).It is directed at some specific purpose (action focused), such as to assess, evaluate, measure changes, convey a message, changes message and reflects an underlying goal, values, conditions, a message, etc. One important attribute is “simplicity” other attributes of indicators are reliable, consistent, valid, capacity to measure changes over time and cost effective. (Barsaga, 2002).

Also UNAIDS (2008), defined Indicator as a quantitative or qualitative variable that provides simple and reliable means to measure achievement, monitor performance, or to reflect changes connected to an intervention. Indicators aggregate, quantify and simplify information. They help us to measure the status quo or progress towards some objective and to evaluate vast amounts of information by looking at few simple figures. It is possible to use indicators to benchmark one country against another or demographic group against others. Indicators can provide guidance, goals and objectives. When developing, measuring and analysing indicators several things need to be borne in mind; measure right thing, simple and practical (Stork, 2007).

Tanzania’s National ICT policy adopted in March 2003, recognizes that “ There are new opportunities in applying ICT to enhance education, including curriculum development, teaching methodologies, simulation laboratories, life-long learning and distance education”. The implementation of this policy requires systematic ME by all stakeholders. ME will be used to research and develop ICT integration, to learn from past experiences, to improve implementation and service delivery, to assess and allocate resources, and to demonstrate results. In statement number 6.6.1 in the Policy, MoEVT declares that it will work in close collaboration with key stakeholders to establish instruments and mechanisms for continuous monitoring and evaluation, including criteria, indicators and benchmarks for assessment of implementation and impact. (MoEVT, 2008).

1.2 Statement of the Problem

The existence of national ICT policy would indicate demand for indicators; however, no sufficient information on indicators used in the national policy is available yet. Additional information on digital divide can’t be clearly identified due to lack of indicators for measuring and monitoring ICT progress in Tanzania.

Because of the importance of the ICT sector, there is a need for statistical information on the ICT sector and its activities. Unfortunately, the availability of such information is scarce at the national level. The first step towards meeting these needs is to elaborate the definition for the ICT sector in Tanzania. This work has been mainly based on the OECD Working Party on Indicators for the Information Society (WPIIS) hence Tanzania has to be part of it. Therefore there is a need of establishing standard ICT indicators that are acceptable nationally and globally, to measure status quo of ICT development and for purpose of Monitoring and Evaluations of ICT projects in Tanzania.

1.3 Objectives of the Study

The objectives of this research are divided into two parts, namely; general or overall objectives and the specific objectives.

1.3.1 General Objective

To identify ICT Sector parameters and Indicators that will reflect to the sound national ICT policy for future development of Tanzania.

1.3.2 Specific Objectives

a) To identify ICT sector parameters and propose indicators that are comparable at the international level from other reviews
b) To carry out survey of ICT proposed indicators using self-administered questionnaire to identify potential indicators
c) To perform exploratory and confirmatory tests and list down the core ICT indicators under each sector

1.4 Research Questions

a) Does Tanzania have any ICT policy and does it indicate any standard ICT indicators?
b) What is the correlation between ICT Sector parameters and their respective indicators
c) Which potential indicators passed EFA and CFA tests?

1.5 Significance of the Study

Tools for measuring and monitoring ICT progress can help in bridging the digital divide with the developed countries among individuals of Tanzania. Good examples of the impact of ICTs on development are farmers getting better market price information and thus boosting their income. Another example includes mobile telecommunications and radio broadcasting fighting political corruption in Burundi.

Another example in Tanzania is the mobile applications like airtel money, tigo pesa, Z-pesa and M-pesa which are used to transfer money or credit form one mobile number to another, to pay bills for water, electricity and other services. Banks also in collaboration with telecom companies have merged mobiles services. National Microfinance Bank (NMB) of Tanzania has developed NMB Mobile service while CRDB Bank has developed SIMBanking Services. In Both services a customer can get short information about his or her account, transfer money to another account, to top-up mobile credits and to pay bills for water, electricity and other services.

Furthermore, shopping online and purchasing through internet (eBay PayPal) and scratching respectively has been possible through debit or credit cards either MasterCard or visa Card since early 2010 with Exim Bank and now CRDB bank. National Business Bank (NBC) offers only scratching cards.

ICT can also help in the achievement of the Millennium Development Goals through three basic processes: enhancing livelihoods, improved efficiency in the delivery of services, and allowing local stakeholders a voice in the planning process and formulation of sound national ICT policy. It should consider identifying relevant criteria to ensure the sustainability of ICT initiatives, which includes the maintenance of concepts and contingency planning.

In summary, the ICT indicators have the following uses: - To measure Digital Divide
- To guide in procurement of ICT facilities and certification of training courses
- To measure a social or economic problem
- To monitor progress in social and economic development
- To assess objective achievements on ICT curricula, projects and initiatives
- To measure status quo and track trend changes which could only be gathered in smart way
- To interpret ICT statistics for decision making

In addition, ICT is also going to impact on the development of the other economic sectors. For example, ICT also appears to have brought about more qualitative economic benefits like valuable networks between customers and suppliers, innovation in service delivery through the Internet, improved efficiency in manufacturing and enhanced productivity by enabling firms to reduce routine transaction costs and rationalise supply chains. Such benefits are long term in their effects, and will continue to evolve over time.

For policy-making in this area, there is a strong need for statistics that show how the Information Society is taking place in Tanzania. These data must be capable of showing the shape and dynamics of developments in the supply and demand of ICTs and ICT applications.

1.6 Scope and Delimitations

This research is engaged in two major concerns; firstly, to assess the availability of ICT sector parameters and indicators and secondly, to propose a list of Core ICT indicators for National ICT policy of Tanzania.

This research is conducted within Dar es Salaam city and in some of regions of Tanzania due to two main facts; limited time to collect questionnaire responses over the country and most stakeholders who are involved in ICT initiatives and are knowledgeable are located in the city; surveying the whole country is expensive against allocated budget and few available stakeholders especially in the Education sector.

The stakeholders who will be involved in this research are governmental agencies e.g. TCRA; governmental institutions i.e. UDSM, UCC, NGOs e.g. UNDP Tanzania, Ministries i.e. Ministry of Communication, Science and Technology, Ministry of education and Vocational Training, Ministry to mention a view. Upon completion, a paper of this dissertation will be published in TJET in CoET website and copies will be disseminated to potential stakeholders like UNDP Tanzania, TCRA, Ministry of Communication, Science and Technology, Ministry of Education and Vocational Training, Ministry, COSTECH, Telecom Companies e.g. Tigo, Vodacom, Airtel, Zantel and Sasatel, etc.


2.1 Introduction

This chapter discusses the history of ICT in Tanzania and the general experience of other countries in the ICT sector. The first computer in Tanzania, an ICL 1500, was installed in the Ministry of Finance in 1965. Up to 1974 there were seven computers in the country and the Ministry of Finance had already acquired a new computer, an ICL 1900. The installation of computers faced and introduced lot of challenges almost in many offices due to lack of IT personnel, poor coordination and poor ICT infrastructure to mention a few (Mgaya, 1994).

Despite of problems in installation and its challenges but had many positive outcomes to Tanzanian society which we continue to benefit until today. The applications of computers include the following areas;

- Processing of Accounting Data
Most computers bought in Tanzanian Government especially at Ministry of Finance and in other offices were used in payroll processing, billing, and processing of other types of accounting data. Most of those computers used to process data are of the minicomputer and mainframe types.
- Processing Research and Survey Data
In this aspect a computer was used as a calculator to analyse research data, to where a computer is hooked to a high performance liquid chromatography machine in the Physics Department of the University of Dar es Salaam. The Ministry of Finance's
ICL ME 29 computer, for example, was used to process labour statistics and other survey data from various ministries, census data, etc.
- Teaching
Although many computer installations are frequently used for training users or operators, those installed in training institutions were mainly used for teaching only. Today in Tanzania such computers are found in every Education and Training institutes and even in secondary schools and are used for teaching, training and analysing research data.
- Specialized Applications
Some computers in Tanzania are used for specialized applications. Such computers are used directly in aiding other electronic or electro-mechanical processes and include those installed at the Tanzania Posts and Telecommunications Corporation for real-time switching of telephone calls. The Meteorological Department also uses a computer for weather forecasting.

2.1.1 Trend in growth of hardware acquisition and usage since the 1960s

Information on numbers and makes of computers imported is not readily available. Some investigations made by authors (Ndamagi, 1990, Sheya Koda, 1987) noted that the figures provided in Figures 2.1 2.2 are based on inaccurate official statistics. The real number of computers is undoubtedly much higher than those figures. Nevertheless, Figures 2.1 show the exponential growth rate of computer acquisition in Tanzania as a whole in the 1980s and Figure 2.2 also shows the same growth rate of computer acquisition in Tanzania owned by individuals and institutions in the same years. As in other countries, what is important is not the

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number of units acquired using public or private funds, but rather usage and application of such tools in improving performance and productivity in organization.

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The Table 2.1 indicates, most computers were owned by Parastatal and the most available computers were micros, furthermore the public did not own computers. The main reason was ban of computers importation in Tanzania, before 1985 when the president Ally Hassan Mwinyi allowed the importation and another reason was computers were expensive because it was the newest technology. Unlike today the public and private sectors are leading Parastatal and Government to own computers although actual statistics are not available.

Figure 2.1: Number of Computer Systems in Tanzania, (Sheya Koda, 1987)

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Figure 2.2: Number of microcomputers in Tanzania, (Sheya and Koda, 1987)

2.1.2 Early Problems and Challenges of ICT Development in Tanzania Obsolescence of Existing Computers

In 1974 the government of Tanzania banned the importation of computers and this was so effective that practically no public organization managed to import a computer until the end of the decade. In the late 1970s, organizations were still using computers bought in the 1960s. These were already obsolete and frequently broke down and it was very difficult for users to get spares for the old computers from vendors. One of the users of these old computers was the Ministry of Finance. The ministry had to give in and buy a new computer. It also gave permits to several other organizations to replace their old computers with new ones (Mgaya, 1994). Collapse of the East African Community

Up to 1977, Tanzania along with Kenya and Uganda, was a member of the East African Community (EAC).The EAC ran all railways, posts and telecommunications, civil aviation directorates, harbours, and an airline for all the member states. Several of these organizations had computerized their operations. When the EAC broke up in 1977, each country had to set up its own organizations to take over the services that EAC had been carrying out. For most organizations formed in Tanzania, there was a problem because they were taking over computerized systems during the EAC and were now reverting to manual operation. The government was therefore under pressure to buy computers for these new organizations. These organizations had the necessary Tanzanian experts who had worked with the EAC. The government therefore allowed the Tanzania Harbours Authority, Tanzania Posts and Telecommunications, Air Tanzania, and Tanzania Railways to install computers (Mgaya, 1994). Lack of Informatics Education and Training in Tanzania

The need for Policy on Technical Education and Training Technical education and training activities was given reasonable emphasis in our education system since long before independence (MSTHE, 1996). However, by 1996 the policy existed but its contents was not clear and was not officially operationalized in the education system thus resulted to uncoordinated changes and falling standards in technical education and training in the country.

Therefore there was an urgent need for policy reform on technical education and training. Between 1985 and 1994 training situation in the whole spectrum of technical education and training had not achieved the required manpower balance between the different cadres, for instant the ratio between engineer and technologists, technicians and craftsmen remained stagnant at 1:2:14. This imbalance led to inefficiency in industrial activities as some engineers/technologists have been forced to work as technicians while in other cases technicians have had to assume and perform duties of engineers/technologists

2.2 ICT Policy in Tanzania

The Government of Tanzania did not consider much the contribution of ICT development in national economy, but foollowing the effort to develop the national edcation and training policy then in march 2003 set the National ICT policy. The objective was to ensure that it moves in right direction although was late compared to faster development in technology. The policy is aligned to the following vision statement; “Tanzania to become the hub of ICT infrastructure and ICT solutions that enhance sustainable socio-economic development and accelerated poverty reduction both nationally and globally” (MCT, 2003). The overall mission of the policy is to enhance national wide economic growth and social progress by encouraging beneficial ICT activities in all sectors through providing a good framework for investments in capacity building and in promoting multi-layered co-operation and knowledge sharing locally as well as globally Tanzanian ICT policy has articulated ten main focus areas in harnessing ICT in Tanzania which include Strategic ICT leadership; ICT infrastructure; ICT industry; human capital; legal and regulatory framework. Others are Productive sectors; service sectors; public service; local content and universal Access. The national ICT policy’s broad objectives are to provide a national framework that will enable ICT to contribute towards achieving national development goals and transform Tanzania into knowledge-based society through the application of ICT. Also, the policy provides a national framework to accommodate the convergence of information, communication and technology including multimedia. One of the challenges is to develop the ICT indicators. (MCT, 2003).

2.3 General Overview of ICT Indicators

Several countries, namely, Canada, Japan, Korea, New Zealand, Philippines, Slovenia, South Africa, United Kingdom and the United States conducted several researches and studies on ICT and its indicators. In some countries, specifically, Korea, Japan, and in Europe, their country’s vision for the ICT sector served as basis for the formulation of ICT indicators or benchmarks. For example, the government of Korea has “Cyber Korea 21”, the government of Japan has “eJapan Priority Program” and Europe has the “eEurope” initiative. These programs are all aimed at improving the ICT sector. (Barsaga, 2003).

2.3.1 Country Experiences in ICT Indicators and Related Issues

In some countries, certain organizations conducted the survey and thus, formulated the indicators. In the Philippines for example, the Senate Committee on Education, Arts and Culture commissioned SEAMEO-INNOTECH to conduct the national survey that would profile the ICT capabilities of elementary and secondary schools in the Philippines. SEAMEO-INNOTECH was responsible for formulating the indicators/ items in the survey. For other countries, the basis for their ICT indicators was not made clear. The United States utilizes a set of standards for technology use of students, teachers and school administrators. The International Society for Technology in Education (ISTE) came up with the National Education Technology Standards (NETS) Project. The primary goal of the ISTE-NETS Project is to enable stakeholders in PreK-12 education to develop national standards for the educational uses of technology that will facilitate school improvement in the United States. The ISTE standards are also currently being adapted in Europe. Other countries have not indicated any standards for technology use in education. (Barsaga, 2003).

Tables 2.1 to 2.17 in appendix 1 describe in summary ICT indicators used in different countries over the World. The observation in the experience of other countries indicates that Education, Policy and Strategies, Business and ICT Infrastructure and Usage are major areas of concern as most of the indicators fall under the categories.

2.3.2 The link between ICT and Sustainable Development

Sustainable development depends in turn on human capital, good governance, an effective use of natural resources and the protection of the environment for future generations (Stern 2002). ICTs can contribute to improve all these factors. Several sources collect indicators useful for the analysis of sustainable development. The World Bank collects various types of indicators for business climate in its Doing Business Survey (World Bank 2005). The Global Competitiveness Report from the Word Economic Forum (Lopes-Claros et al., 2007) benchmarks countries based on indicators mainly derived from perceptions of business leaders. Index of Economic Freedom from the Heritage Foundation (Miles et al., 2006) focus also on the private sector aspect of sustainable development using secondary data from the World Bank’s Doing Business Survey, and many other sources.

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Figure 2.3: Components of Sustainable Development (Stork, 2007)

The Human Development Report (HDR) and human development index (HDI) of the United Nations is an indicator set for the human development pillar of sustainable development as depicted in the figure 2.3 above. ICT indicators are often included in development indicator frameworks. Millennium Development Goals contain three ICT indicators as part of goal 8, “Develop a global partnership for development”. The UN Commission on Sustainable Development equally uses ICT indicators for the sustainable development indicators, and so does the HDI. Table 2.2 lists some of the Sustainable Development indicator frameworks and the ICT indicators used for them including classifications (Stork, 2007).

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2.3.3 The Role of ICT for the Performance of SMEs in East Africa

Small and medium enterprises are an important factor in the East African economies especially with respect to employment. The increasing competition through globalization puts them under considerable pressure. Through the rapid spread of information and communication technologies (ICT) and ever decreasing prices for communication, markets in different parts of the world become more integrated. Therefore, one basic question is whether the use of ICT (as production technology, as information processing technology or as information communication technology) can help them to cope with these new challenges.

Information asymmetries are one of the major causes for high transaction costs, uncertainty and therefore market failure. According to Matambalya Wolf (2001) the sample of 300 SMEs in East Africa showed that, the use of ICT by SMEs in Kenya as well as in Tanzania is increasing over time. The usage of fixed phone lines nearly reaches the saturation point but is still lower in Tanzania than in Kenya. The percentage of firms that use mobile phones is increasing fast in both countries. Especially in Tanzania, despite its late start only in 1994 it has already outgrown the usage of fax machines and computers. Computer applications have considerably increased management efficiency and competitiveness respectively. Mobile phones are considered to contribute significantly to regional market expansion by most enterprises, followed by fixed phones and faxes. For all sectors in both countries the average size of enterprises is generally bigger for users of more advanced ICTs.

2.3.4 Vision 2025 and ICT

It is also noteworthy that Vision 2025 explicitly includes ICT by noting, “The new opportunities that ICT is opening up can be harnessed to meet the goals of the Vision”. Therefore this ICT Policy is a reflection of national goals, objectives and aspirations as expressed in Vision 2025, setting out digital opportunities that Tanzania can exploit towards meeting the Vision 2025. The five 2025 vision goals are:

- High Quality Livelihood; through Service Sectors and availability of universal access. Peace, Stability and Unity; through strategic ICT leadership and legal and regulatory framework (trust, security values).
- Good governance through public service (e-government) and ICT infrastructure and or effective use of unutilized ICT capacity and infrastructure.
- Well-Educated and Learning Society through Human Capital and Local Content
- Strong and competitive economy capable of producing sustainable growth and shared benefits through productive sectors and ICT industry. (Tandari, 2004).

In Tanzania, TCRA, a regulatory Authority was established in 2003 after merging Tanzania Communication Commission and Tanzania Broadcasting Commission whose functions are to regulate the following sector:

Telecommunication ICT Broadcasting, Radio Communication and Posts and Courier Services. Data for these regulated sectors started to be collected since TCRA was established 2003 though there was no formal system for data collection, and the following are examples of some of groups of indicators:

Telecommunication group of indicators; Telephone Lines, Telephone Subscribers, Public Payphones, Number of Links, Number of Circuits ICT group of indicators; Number of ISPs, ISP Subscriber, Internet Users, Number of Public Data Operators, Number of private Data Operators, etc Broadcasting group of indicators; Number of Televisions, Number of Radios, Number of TV receivers, estimated number of house hold with TV receivers (TCRA, 2006).

2.4 International Efforts in Developing ICT indicators

There are also a number of international researchers, individuals and organizations in the world who have collected ICT indicators through Questionnaire surveys from different countries of the World and they continue to review time after time, some of them include the discussion below:

Partnership on Measuring ICT for Development (2009), reviews core ICT indicators and associated standards in six main areas namely; ICT Infrastructure and access, ICT use and access by households and individuals, ICT use by businesses, ICT in producing sector, International trade in ICT goods and Indicators on ICT in education.

Barsaga (2002), identified all concepts to be measured especially research objectives for developing the list of possible trial indicators for education sector from different groups of stakeholders. He started by developing criteria for formulating indicators as depicted in the table 2.3.

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Excerpt out of 136 pages


Development of ICT sector parameters and Indicators
The case of ICT projects in Tanzania
University of Dar es Salaam  (College of Engineering & Technolgy)
Master of Engineering Management
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ISBN (eBook)
ISBN (Book)
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development, indicators, tanzania
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Andrew Kagwa (Author), 2012, Development of ICT sector parameters and Indicators, Munich, GRIN Verlag,


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