Vodacom Tanzania has announced plans to inject more than $100 million into modernising its network and digital platforms, with a special focus on upgrading its M-Pesa services, over the next five years. The investment is part of the company’s ambitious Vision 2030 strategy and represents one of the most significant infrastructure commitments in its 25-year history.
The programme seeks to transform connectivity nationwide, improve service quality, and accelerate digital and financial inclusion in both urban hubs and underserved rural communities. According to the company, thousands of network sites will be upgraded, alongside major improvements to its IT backbone and the M-Pesa platform.
The upgrades are expected to deliver faster internet speeds, better call quality, more reliable mobile money transactions, and stronger cybersecurity protections for Vodacom’s growing customer base.
“Our journey to Vision 2030 has officially begun. This investment lays the foundation for the next five years and beyond – empowering people through digital access, advancing greener technologies to protect the planet, and strengthening trust among our customers, partners, and investors,” said Vodacom Tanzania managing director Philip Besiimire.
He revealed that more than 1,000 network sites have already been upgraded across the Lake Zone, Southern Highlands, and central Tanzania. The modernisation drive is aligned with Tanzania’s national digital transformation agenda as well as the United Nations Sustainable Development Goals.
As part of its Net Zero 2035 commitment, Vodacom will deploy energy-efficient infrastructure that reduces power consumption by up to 30 percent while simultaneously boosting performance and coverage.
“This project incorporates cutting-edge technology to significantly expand 4G coverage, delivering faster and more reliable connectivity wherever Vodacom is available,” said Vodacom network director Andrew Lupembe.
“We are going greener with Huawei’s ‘zero-bit-zero-watt’ technology, which dramatically improves power efficiency and reduces emissions, while preparing the ground for enhanced 4G and 5G services. In addition, we are introducing multi-band radio solutions that allow multiple frequency bands to run through a single antenna, optimising space and efficiency.”
Stiff Competition
Vodacom Tanzania operates in a fragmented market where mobile money services are highly competitive, with rivals such as Airtel Money, Tigo Pesa, and Halopesa limiting Vodacom’s dominance. Unlike in Kenya, where Safaricom enjoys near-monopoly status with M-Pesa, Tanzanian customers have multiple platforms to choose from, diluting Vodacom’s market power.
Regulatory policies have also weighed heavily on the sector. The introduction of mobile money transaction levies in 2021 significantly slowed usage, highlighting the market’s sensitivity to government intervention. Limited smartphone penetration—especially in rural areas—further constrains uptake of advanced digital services, while inconsistent electricity supply in parts of the country disrupts both network reliability and customer experience.
Vodacom’s push to upgrade M-Pesa draws inevitable comparisons with Safaricom in Kenya, where M-Pesa has become deeply entrenched in everyday life. Safaricom commands over 32 million active users, accounting for more than 99pc of mobile money transactions in the country.
Its platform has evolved far beyond peer-to-peer transfers to include credit facilities like M-Shwari, overdraft services through Fuliza, international remittances, and integration with banks, businesses, and government agencies.
In contrast, M-Pesa in Tanzania remains primarily a payments and transfers service, with fewer value-added innovations. The market fragmentation, combined with regulatory levies, has limited Vodacom’s ability to replicate Safaricom’s success. This has made reliability, accessibility, and affordability central to Vodacom’s strategy.
By investing $100 million in technology upgrades, Vodacom aims not only to expand its 4G and 5G capacity but also to improve the resilience and trustworthiness of M-Pesa, positioning it as a platform capable of matching Kenya’s more advanced ecosystem in the future.
Vodacom maintains that as Tanzania’s digital economy grows, its role will be to enable inclusion, catalyse innovation, and build infrastructure that connects every Tanzanian to opportunity.
Vodacom notes that as Tanzania’s digital economy continues to grow, the company’s focus remains on enabling innovation, driving financial inclusion, and building infrastructure that connects every Tanzanian to new opportunities.
