Manyarara said many service providers were failing to expand because governments were refusing to provide tax relief.

Vodacom Tanzania has however said that it has managed to secure a US$90 million loan from a consortium of local banks to finance capital expenditures. The money is part of a five-year, $150 million syndicated loan facility with Citibank Tanzania as lead lender.

The funding is aimed at financing the company's growth plans and improving its communication infrastructure.

Meanwhile, Vodacom has launched a new service that will allow its subscribers to buy electricity through an electronic cash service known as Vodafone M-pesa.

Vodafone M-pesa is an e-money account that lets customers use their mobile phones to pay their utility bills. Customers can also send money through mobile phones to any cell phone user and can also receive money through their cell phones.