USSD, SMS remain vital in telecoms despite AI chatbot boom

Taha Jiwaji, CEO and founder of Beem, says that in the age of AI, within a Sub-Saharan context, USSD and SMS continue to provide a relevant interface for businesses.
Lezeth Khoza
By Lezeth Khoza, Junior journalist
Johannesburg, 20 Aug 2025
Taha Jiwaji, CEO and founder of Beem.
Taha Jiwaji, CEO and founder of Beem.

Sub-Saharan Africa stands at a crossroads, where the promise of generative artificial intelligence (GenAI) clashes with the realities of infrastructural challenges, such as unstable electricity, limited internet access, and uneven smartphone adoption, creating a gap for USSD and SMS as communication methods to remain relevant.

This is according to Taha Jiwaji, CEO and founder of Beem, a Tanzanian start-up focused on mobile communication services across various digital platforms, enabling businesses to engage with their customers. 

In an interview with ITWeb Africa, Jiwaji said his company had already been experimenting with chatbots before the current GenAI wave occurred. However, citing basic feature phones as a crucial player in the continent’s communications ecosystem, he says it’s important to be mindful that the future of technological advances is not always the same for countries across the region.

An analysis by Statista highlighted that the feature phones market in Africa amounts to $2,39 billion in 2025, and is thriving in Nigeria, due to affordability and durability, making it the preferred choice for many users. However, there’s a projected volume growth decline of 5,2% in 2026.

Jiwaji said the fact that feature and smartphones are being used has led Beem to cater for both markets.

“This dual approach shapes our business strategy, we design solutions that are forward-looking and innovative, yet practical and inclusive, ensuring they work for all segments of the population. Which is why, as much as we build out our AI and chatbots offering, we will never neglect USSD and SMS.”

He went on to say the strategy allows Beem to operate in an environment that still faces digital divide, enabling businesses to expand reach across different channels.

“Some people have the latest smartphones and constant internet, while others are still using basic feature phones with spotty connectivity.

“This digital divide is really noticeable in Tanzania, so, we make sure our solutions work for everyone, whether it’s SMS, USSD, WhatsApp, or Moja, our AI-powered platform,” he said.

The start-up is looking to grow both in terms of markets as well as products, including support for more communication channels, such as voice and email.

“We’re growing our product stack to cater to more use cases that a business needs for its communication needs out of the box, and deeply embedding the latest AI advancements into this stack.

“Kenya was our first market that we set up a big team and sales presence in after Tanzania. We’re looking to add two more markets with a deeper sales team and presence over the next couple of years. This will allow us to be closer to larger enterprise customers, especially larger regional brands, and tailor solutions to those specific markets,” he said.

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