THE government has incurred an estimated economic loss of 352.7bn/- since widespread disruptions began on major social media platforms on May 20 this year. This staggering economic toll was confirmed in a new report, released on November 6, this year, which details the extensive damage caused by the continued blocking of key digital channels like X (formerly Twitter), TikTok, and Instagram Live.

The report, titled ‘Offline, Off-Balance: Uncovering the Economic Impact of Blocking TikTok, X, and Instagram on Content Creators and Businesses in Tanzania’, was jointly produced by digital rights advocates Tech & Media Convergency (TMC) and the Internet Governance Tanzania Working Group (IGTWG). The advocates state that the shutdowns have led to significant income loss for citizens, postponement of crucial business transactions and a general decline in overall economic activity.

The analysis draws on previous data, including an estimate by the online monitoring platform NetBlocks, which found that internet disruptions in 2024 alone cost the Tanzanian economy approximately $1.4 million. The current 352.7bn/- figure reflects lost income, halted transactions, and diminished economic activity for thousands of Tanzanians.

The primary platform restrictions have focused on X, which has only been consistently accessible via a Virtual Private Network (VPN) since May 20. TikTok and Instagram Live have faced similar access challenges, severely impacting social commerce and livelihoods of digital content creators and Small and Medium Enterprises (SMEs), particularly those led by women.

TMC and IGTWG argue that this loss of productivity and restricted market access threatens to undermine investor confidence and Tanzania's competitiveness in the regional digital economy.

The digital rights groups highlighted a "growing confusion" between the government’s public commitment to building a thriving digital economy—as outlined in documents like the Digital Tanzania Project and the Tanzania Digital Economy Strategic Framework—and its tendency towards restrictive online policies. The report states that these restrictive actions are in direct conflict with national core policies that stress inclusive and sustainable development through technology growth.

In response, TMC and IGTWG strongly recommended that the government ceases all future network and platform blocking. They advocate for adherence to a “digital-first, do-no-harm” principle, treating an uninterrupted internet as critical national infrastructure. 

Furthermore, to address legitimate content moderation concerns, the private sector is urged to implement context-aware content regulation, including the deployment of Kiswahili-speaking content reviewers or culturally aware Artificial Intelligence (AI) systems.  The report concludes that protecting the digital economy is essential to protecting Tanzania's future.