Dar es Salaam. Tanzania’s National Physical Addressing System (NaPA) mobile application represents a significant leap forward in the country’s digital transformation journey.
On February 8, 2025 the minister for for Information, Communication and Information Technology, Jerry Silaa, launched the mobile application in a ceremony in Dodoma.
While the NaPA app’s immediate goal is to enhance transportation efficiency and security, its potential impact on e-commerce could be even more profound.
The question remains: can this digital address system position Tanzania as East Africa’s next e-commerce powerhouse?
Breaking the logistics barrier
One of the biggest challenges facing e-commerce in Tanzania has been the absence of an organised address system.
In urban areas, informal addressing makes last-mile delivery cumbersome, while rural areas suffer from a complete lack of structured addresses.
This has led to inefficiencies in logistics, with delivery firms struggling to locate customers accurately.
The NaPA mobile application directly addresses this issue by integrating geolocation technology that allows users to register their precise home or business addresses.
Delivery drivers can then use the system to navigate efficiently, eliminating the need for endless phone calls and descriptions of landmarks.
If implemented effectively, NaPA could significantly reduce delivery times and operational costs, making e-commerce more viable for businesses and consumers alike.
Learning from global and regional successes
Several countries have demonstrated the power of digital addressing in transforming their e-commerce landscapes.
India, for instance, saw a boom in online shopping after launching a national digital address system, which facilitated accurate deliveries even in densely populated and previously unstructured neighbourhoods.
In Kenya, the integration of digital addresses into ride-hailing and delivery apps has played a crucial role in the rise of online businesses and efficient courier services.
Rwanda’s Smart Kigali initiative, which included a digital addressing component, has not only improved urban mobility but also helped local businesses reach customers faster.
Tanzania now has an opportunity to replicate and even enhance these successes, leveraging NaPA to create an enabling environment for e-commerce growth.
A needed push
Despite increasing internet penetration and smartphone usage, Tanzania’s e-commerce sector still lags behind its regional peers.
One of the key reasons has been the logistical challenge posed by a lack of structured addresses.
The introduction of NaPA could provide the much-needed infrastructure to support online businesses, enabling reliable doorstep deliveries and fostering trust among consumers who have traditionally been sceptical of e-commerce due to delivery uncertainties.
Moreover, this system could attract international e-commerce giants that have been reluctant to expand into Tanzania due to logistical concerns.
If major players such as Jumia, Amazon, and Alibaba find a more efficient delivery framework in place, they may be more inclined to strengthen their presence in the country, driving competition and innovation in the local market.
Enhancing financial inclusion
A robust digital addressing system also has the potential to improve financial services, particularly digital payments.
Many Tanzanians remain unbanked or underbanked, partly because financial institutions struggle to verify customer addresses.
By providing an official digital address, NaPA could facilitate easier KYC (Know Your Customer) compliance, allowing more citizens to access banking, mobile money, and credit services.
This, in turn, could increase consumer spending power, further fuelling the growth of the e-commerce industry.
Overcoming potential challenges
While the NaPA system presents a promising solution, several challenges must be addressed for it to truly unleash Tanzania’s e-commerce potential.
Adoption and awareness; Many Tanzanians are unfamiliar with digital addressing.
The government and private sector must collaborate on awareness campaigns to educate businesses and consumers on its benefits and usability.
Internet and smartphone access; Despite growing mobile penetration, internet connectivity remains inconsistent in rural areas. Ensuring broader access to digital infrastructure is crucial for NaPA’s success.
Integration with existing systems; E-commerce platforms, delivery services, and financial institutions must integrate NaPA into their existing workflows.
Partnerships with tech firms will be essential in achieving seamless adoption.
Regulatory and Privacy Concerns; Collecting and storing location data raises privacy and security questions.
The government must implement strict data protection regulations to prevent misuse.
The path forward
Tanzania has made a commendable move in launching NaPA, but realising its full potential will require a multi-stakeholder approach.
The government must continue investing in digital infrastructure, while private sector players, including e-commerce firms and financial institutions, should actively integrate the system into their operations.
If successfully implemented and widely adopted, NaPA could serve as the foundation for an e-commerce revolution in Tanzania, bridging the logistics gap and making online shopping more accessible and efficient.
In doing so, the country could emerge as a regional leader in digital commerce, tapping into the growing online consumer market across East Africa.
The potential is undeniable. The challenge now lies in execution. Can Tanzania seize this opportunity and transform its e-commerce landscape? Time will tell.
