Internet: the magic of communication for business and economic solution

WHEN web surfing was introduced to the rest of the world in early 1998 to compete head on with new and old media, little did the world know that Information and Communication Technology (ICT) was going to transform economies of scale for small and medium size business enterprises. Internet, being one of the fast growing and the leading tool of the ICT in today’s era of Science and technology is more useful for the purpose of speeding up business and economic development of nations. With the use of the internet facility for business and economic transactions, the pace of globalization has been accelerated and many governments have made significant progresses to achieve their targets. The progresses made so far is as a result of deploying ICT in both e-government and e-governance solutions in a category whereby several departments from various government ministries are transforming their business operations quickly. Internet is an enabler for people, the business community and civil society to communicate at no cost or at low cost. It has prompted a change of development in a global sphere of thinking as it is a feeder of information transfer. Various arms of governments in the world including Tanzania use ICT to promote their tourism market, especially by small operators who specialize in eco-tourism and adventure tourism. The tool has also revolutionized education, governance, manufacturing, medicine, communication and Transport in entirely. With the emergence of the globalization, business operators are under constant pressure for reforms and ICT has been a driving force allowing their capital to move quicker. The most surprising thing to note is that, ICT by not recognizing borders is encouraging everyone to engage in the process. According to the Tanzania Defense of Human Rights and Citizen Rights protections, investments in ICTs have grown substantially and there is a general agreement that increased ICT production and usage and this has contributed a lot to the economic growth of the country. ICTs are tools that help to transfer knowledge and information quickly and comprises the manufacturing and service industries that capture, transmit and display data and information electronically. The manufactured products include office, accounting and computing machinery and other electronic components such as computer peripheral equipment and software, wholesaling of electronic and Tele-communication parts. In recent years, internet being one of the powerful ICT tool has transformed the performance of the global banking business transactions. With new technological set ups, most Banks have been automating their services in order to cater for the increase in demand for quick, efficient and cost effective practices. Tanzania which in the past was conducting a socialist type of economy before it allowed trade liberalization policy in 1985, has entered in international investment forum that culminated in the mushrooming of banking institutions in the country. Now with the proliferation of banking institutions in the country, follows business competition which is exacerbated by the emerging technologies. To cope with the situation internet as the main driving force is extensively used for innovative work. With the use of internet, there are some advancements which have drastically taken place in terms of business transactions, these are such as online payments, hotel reservations, online job adverts, flight e-bookings and many others.

People at the local internet cafe, internet communication has of late become the easiest and useful communication tool for economic and social develoment.

“ICT in general is important in foreign earnings, business support as well as e-commerce, tourism, marketing of domestic products, improved social services and strengthening international relationship”, says the Principal Researcher with the Tanzania Industrial Research and Development Organization (TIRDO) Dr. George .S. Oreku who was recently quoted as saying by this paper. According to him, if ICT is properly utilized and worked out in many development programs it can make improvements and wider technological skills for every sector of the national economy. Transferring money using the services of cell-phone network operators is increasingly becoming a common phenomenon among the more than 14 million Tanzanians who currently have access to mobile telephony. Cellular network money transfer were pioneered in East Africa by the Kenya based company in 2007, coining the code M-Pesa for the service and that code was later adopted by Vodacom Tanzania Limited. The system is among the easiest ways of sending money within the country whether one has a bank account or not. One can also pay for the goods and services purchased by one using the system. In Sept 2006, it can be remembered that “The Citibank Tanzania Ltd” introduced an online funds transfer. This online banking services dubbed “City Direct” enables their customers in the country to transfer money electronically at the click of a computer mouse. This is an innovative way that see to its customers the transfer of funds online to beneficiary accounts held at other commercial banks in the country. The services relieves the customers of the necessity of using paper cheques and eliminates the need to visit the bank for transaction services. Information Technology experts relates the service as the magic of online communication that is efficient and ensures safety of transactions. Through this online connection, Citibank customers are able to initiate various types of payments including salaries, supplier payments taxes and dividends from their offices efficiently and in a secured manner. Another bank with the same services is the Tanzania Postal Bank. Banking sector has gone so far in the use of ICT and their applications for business transactions. The banks have also expounded this technology particularly in e-documentations and Automated Teller Machines (ATMs) According to the Director of ICT in the Ministry of Communications, Science and Technology Dr. Zaipuna Yona, once there is proper utilization of ICT in government offices, then there could be no fall-in for passports in Immigration offices in the country or flocking of customers at the Tanzania Revenue Authority (TRA) offices. Although ICT services has expounded largely in towns and in cities where most business activities takes place, farmers in rural areas suffers the most as they do not have direct access because of a number of factors. The basic one being lack of a reliable infrastructure as well as electricity in those areas. Forget about the provision of the ISP for the internet that might become impossible owing to the location of an area. In Tanzania, the recent introduction of a mobile internet access product by a cellular phone company, Zain Tanzania, aimed at assisting its subscribers surf quickly and easily in rural areas. According to Zain Tanzania, the service that employs GRPS/EDGE technology enables data connections significantly faster than dial-up and traditional GSM systems. This is a wireless service facility that enables one to download voice, data and images faster in computers. The technology keeps one connected to his/her laptop computer while on travels in Zain coverage areas in the country. The access usually provides subscribers with pre-paid and post paid customer care services and the freedom to stay connected. People owning laptops buys personal computer internet cards (PCI Card) with which they can access the internet and get connection with corporate networks, send business applications and workforce management systems. With such developing concept of a modern communication technology that employs the use of internet, Zain Tanzania Ltd makes use of its widest coverage in the region to help stimulate convenient business interaction at an affordable price. Under the operation, internet café businesses in rural areas are a common place.