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Communications permanent secretary Faustine Kamuzora said here on Tuesday that once enacted the law would guard the country against data hacking.
« We need to draw a line between people who collect data and those who own it, » he told Tanzanian and Chinese journalists who toured the Dar es Salaam Internet Centre (DIC) at the Tanzania Communications Regulatory Authority (TCRA) offices.
Prof Kamuzora said the bill was in early stages of s preparation.
He hopes that when it is ready and passed into a law it will spur investment.
He called upon information and communication technology companies to increase investments to meet the growing local market and those in neighbouring countries such as the Democratic Republic of Congo and Mozambique.
He said the DIC was built with a $35 million (about Sh77.9 billion) concessional loan from the Chinese government.
The loan will be paid in 25 years.
Experts say hackers may be motivated by a multitude of reasons, such as profit, protest, challenge, recreation, or to evaluate system weaknesses to assist in formulating defences against potential hackers.