3. The Government will set up national IXPs and hierarchical IXPs, in collaboration with other countries as well as regional information and communications infrastructure. 4. The Government will encourage appropriate lending mechanisms that foster a dynamic climate for entrepreneurs to venture into ICT and related sectors. 5. The Government will encourage public and private sectors to explore various means of funding, including but not limited to loan finance, equity finance, incubation finance facilities, hire purchase finance, and grant finance for ICT development. 6. The Government will seek to ensure all installed ICT infrastructure is utilised effectively, and is synchronized to contribute to resilience and redundancy on a national basis. 3.3 ICT Industry 3.3.1 Issues It is obvious that the development of ICT cannot occur without the involvement of the private sector. Most ICT firms focus on serving urban centres whereas 80% of the population is in sparsely populated rural areas. Enticing the private sector to broaden their target markets will need the Government’s support to make it economically viable to invest in small and dispersed markets. At the same time, our country needs to move from being mere consumers of the technology to the processes of being designers and manufacturers of ICT. This will also require Government support. Tanzania's ICT industry needs to be encouraged towards experimentation and research, with the support of mentoring, venture capital and fiscal incentives, as small-scale startups and artisan enterprises are an essential component of a vibrant ICT sector. The education system needs to be oriented to emphasise entrepreneurial and professional skills. In addition to creating opportunities for acquiring technical competence in ICT, hybrid technical and commercial skills are very necessary in the sector. The ICT industry will also need to gain a common voice to talk to the Government and articulate the industry’s needs and concerns. This relationship with Government needs to be transformed from being focused mostly on taxes and tenders towards being more of a partnership for national development. 3.3.2 Policy Objectives a) Create a conducive environment for a vibrant and sustainable ICT industry in Tanzania that is aligned to national priorities. b) Contribute to efforts in making the country a competitive developer and producer of ICT products and services. c) Build direct relationships with the manufacturers and designers of ICT resources. d) Promote ICT culture, general awareness and political e-readiness in Tanzania. e) Provide accurate feedback to the Government on the impact of policies and measures that affect the ICT market, while informing and advising on future courses of actions. f) Guide the Tanzanian market on the full range of available options in terms of sourcing, licensing, upgrading and sustaining of ICT investments. g) Promote special package deals for micro-enterprises or for community organizations. h) Encourage multi-sectoral initiatives that apply ICT for poverty reduction, employment creation, and innovative entrepreneurship. Page 12