Vodacom Tanzania outlines spending plans but warns against taxes

23 Aug 2013

Reuters reports that that Vodacom Tanzania plans to spend more than TZS200 billion (USD124 million) on improving the business this year. ‘The cellco’s managing director, Rene Meza, told Reuters that ‘this year will see us invest over TZS200 billion in network expansion, data and M-Pesa’. However, the executive also warned that the Tanzanian government’s introduction of a new tax of TZS1,000 per month on every SIM card and an excise duty of 0.15% on money transfers could negatively impact the sector. The tax was introduced from the start of July this year but the president ordered its enforcement to be frozen pending a review after a public outcry. ‘The mobile industry in Tanzania is already heavily taxed. Additional taxes will definitely discourage investment particularly for rural expansion,’ Meza said.

Tanzania, Vodacom Tanzania