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public service can communicate internally and with the intended beneficiaries of its services.
3.6 Problems and Constraints in Implementing ICT
Deficiencies in Infrastructure and Investment Climate
Tanzanian companies are operating under some restraints that seriously impedes their opportunities to reallocate resources from basic investments
into investments in information and communication technology. These are: Unreliable power and water supply
Poor condition of the roads Uncompleted networks for data- and telecommunication
This circumstances force the companies to invest in expensive equipments such as generators, wells, water reservoir, expensive transport equipments,
and satellite and radio communications. In addition there is a number of constraints that strongly affect the corporate
performance and put the Tanzanian enterprises to a disadvantage compared to their foreign competitors in terms of cost and quality of products and
services. High costs of energy and telecommunications
High import taxes and cumbersome procedures for import clearance Complexity of tax structure
Inefficient administrative procedures for starting and running
enterprises Corruption
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The infrastructure deficiencies also constitute a barrier in realizing new business ideas based on e-commerce, which in turn requires reliable access
to web based applications and high efficiency in the delivery chain.
Under-developed Financial Market
Investment in ICT are often costly and the lack of credit supply facilities and investment capital is an obstacle in the process of ICT implementation.
Interest rate are also high which prevents companies from borrowing even in cases where credits are available. In the long run the lack of instruments for
financing participation in training courses can also turn into a barrier in recruiting students in training programmes.
Lack of Adoption Hardware and Software
Modern hardware and software is developed for the needs of companies and organizations operating under working conditions and physical environment
of the industrialized world. In the tropical climate of many developing countries computers are exposed too much harder stress than usually in the
industrialized countries. Extreme heat, humidity, dust and frequent breaks in power supply are a reality on many working sites in tropical Africa. These
diverging circumstances cause difficulties in implementing existing hardware, software and applications.
Lack of Motivation to Replace Existing Production systems with Modern ICT
The decision makers lack sufficient knowledge to evaluate the benefits of ICT and further implication of computerization. The use of new technologies
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becomes a question of cost rather than investment in future income. In this perspective the cost appears to be higher than it would be if the investment
appraisal had included both cost and income. The Tanzanian industry has no tradition of co-operation and linking up with
sub-suppliers, one of the main reasons to invest in electronic communication and exchange of information and documents.
Lack of Competence and Awareness
The owners and management lack understanding for ICT and sufficient knowledge to evaluate benefits. There is also a lack of commitment, which
shows in unrealistic funding plans and time schedules of implementation projects.
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CHAPTER 4
4. AIM OF STUDY AND RESEARCH APPROACH
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