TANZANIA INSTITUTE OF ACCOUNTANCY
TANGA CAMPUS
COURSE TITLE: BPLM II.
YEAR: 1ST YEAR, SEMISTER ONE.
COURSE MODULE: BUSINESS INFORMATION SYSTEM.
COURSE CODE: GSU 07301.
LECTURES NAME: SIR. PETER JOSEPH.
TASK: GROUP ASSIGNMENT.
SUBMITED BY: GROUP NUMBER 01.
DATE OF SUBMISSION: 21 JANUARY 2026.
QUESTIONS.
1. What are the challenges facing E-commerce in Tanzania?
[Link] E-commerce is essential fo Businesss.
GROUP MEMBERS:
NO NAMES REGISTRATION SIGNATURE
. NUMBERS.
01. JOSEPH JAMES MPINA TNG/BPLM/24/132579
02. ANTONY FIDELIS BOAY TNG/BPLM/24/134657
03. DEBORA ALPHONCE MWENDA TNG/BPLM/24/139363
04. FAAJI HAMISI TNG/BPLM/24/131704
05. JOHARI ISSA NYONI TNG/BPLM/24/134315
06. SALUM SAIDI MKAWA TNG/BPLM/24/137415
07. JUMAA FADHILI JUMAA TNG/BPLM/24/140817
ANSWERS.
QN 1;
E-Commerce; refers to the process of buying and selling of goods or services over the
internet. It also known as electronic commerce or internet commerce. E-commerce has improved
service provision in the country and the world at large, It has been faced with a lot of problems in
Tanzania. The following are the challenges facing E-commerce in Tanzania
Shortage of skilled personnel; Low digital literacy and skills gaps hinders e-commerce
in Tanzania something that lead customers and small business to fail to use digital platforms
effectively. For example, lack of computer literacy, the use of digital payment tools hence lacks
of internal capacity to build, manage or to promote e-commerce services.
Economic constraints; e-commerce in Tanzania is faced with the challenge of lower
average of income and limited purchasing power hence few customers can afford frequent online
purchases something that lead to reduction of scale needed for platform to be commercially
variable in Tanzania as it requires high data cost relative to income thus discourage online
buying and browsing
Limited internet access and Information Communication Technology infrastructure; in
Tanzania there is shortage of internet infrastructure something that limit e-commerce and hinder
it to work in some areas where there is limited internet access as large population in Tanzania
has no internet and only a small portion of the population has reliable internet access something
that hinders both small sellers and customers’ ability to access online business.
Payment challenges and customer Trust; low banking and formal credit-card
penetration means many buyers are uncomfortable paying online especially in a context where
cash on or delivery is often preferred. Trust issues, fear of fraud scams, fake products or on
delivery reduce willingness to purchase online.
Logistics and delivery Barriers; E-commerce is faced with the challenges of poor
transport network and lack of formal street address hence make difficult in product delivery and
make it to be expensive, slow and inefficient especially outside major cities. This has been
cornerstone to the development of e-commerce in Tanzania. Hence lead to inefficiency and
ineffectiveness of the e-commerce in the country.
Cyber security threats and consumer protection; e-commerce is faced with a wide
range of consumer protection and cyber security challenge as e-commerce has not been
protecting consumers as they are vulnerable to substandard to product, misleading advertising or
fraud something that reduces overall trust.
Social cultural factors, in most cases e-commerce is faced with the challenge of social
cultural factors as many Tanzanians are normally prefers to buy products on the market where
they can touch and see them so as to bargain hence increase trust and ensures the quality and
quantity of the products purchased by the customers rather than online buying where the
customers are un able to touch and see the product quality and quantity hence reduce trust on
online buying
Generally; E-commerce has brought great changes to Tanzania as many people are now
getting goods and service on time and wherever they are hence increase individual income and
government revenue, it has also lowered a startup costs, lower the transaction cost and provide
sellers with global reach, opportunity to collect valuable data, increased selection and promotion
of international sales.
QN 2.
E-commerce; refers to the buying and selling of goods and services through electronic
platforms such as websites, mobile applications, and social media. In the modern digital era, e-
commerce has become an important tool for business growth and sustainability. It enables
businesses to operate efficiently, reach a wider market, and meet changing customer needs. As
technology continues to advance, e-commerce plays a vital role in improving competitiveness
and profitability for businesses of all sizes.
Expansion of Market Reach; E-commerce enables businesses to reach customers beyond
their physical location. Through online platforms, a business can sell products or services to
customers in different regions or countries. This increases the number of potential customers and
overall sales. It also helps businesses grow faster compared to relying only on local markets.
Example: A clothing business in Dar es Salaam can sell products to customers in Mwanza
through online marketplaces like Jumia or social media.
Reduction of Operational Costs; E-commerce helps businesses reduce operational costs
such as rent, utilities, and staffing expenses. Unlike physical stores, online businesses do not
require large premises or many employees. This allows small and medium enterprises to operate
efficiently with limited capital. The saved costs can be invested in marketing or product
improvement. Example: An entrepreneur selling products via WhatsApp Business does not need
to rent a physical shop.
Availability of Business Services 24/7; One of the major advantages of e-commerce is that
businesses can operate 24 hours a day, 7 days a week. Customers can place orders at any time
without being restricted by business hours. This increases convenience for customers and
improves sales opportunities for businesses. Example: A customer can order electronics online
late at night through an e-commerce website.
Convenience for Customers; E-commerce provides customers with convenience by
allowing them to shop from anywhere without traveling. Customers can easily compare prices,
read reviews, and choose products that best meet their needs. This convenience improves
customer satisfaction and encourages repeat purchases. Example: A customer can compare shoe
prices from different online stores before making a purchase.
Improved Customer Service; Through e-commerce platforms, businesses can
communicate quickly with customers using emails, live chats, or social media. Customer
inquiries and complaints can be handled faster and more efficiently. This enhances customer
trust and builds a positive business reputation. Example: A customer can track an order or ask
questions through online chat support.
Increased Competitiveness and Business Growth; E-commerce allows small businesses to
compete with larger companies by using digital marketing and online sales channels. Businesses
can promote products at a lower cost compared to traditional advertising. This encourages
innovation, competitiveness, and long-term business growth. Example: A small cosmetics
business can promote its products through Instagram or TikTok and reach many customers.
Conclusion; In conclusion, e-commerce is essential for modern businesses as it expands market
reach, reduces operational costs, improves customer convenience, and enhances competitiveness.
It allows businesses to operate efficiently and serve customers better in a digital environment. As
technology continues to grow, businesses that adopt e-commerce are more likely to achieve
sustainable growth and long-term success.
References:
Laudon, K. C., & Traver, C. G. (2022). E-commerce: Business, Technology, Society.
Pearson
Education.
Turban, E., King, D., Lee, J., Liang, T. P., & Turban, D. (2018). Electronic Commerce: A
Managerial
and Social Networks Perspective. Springer.
Chaffey, D. (2021). Digital Business and E-commerce Management. Pearson Education.
UNCTAD. (2020). E-commerce and Development Report. United Nations.