Joseph Isangura
The Tanzanian government has announced that businesses engaged in foreign currency transactions will need to revise their contracts and switch to using Tanzanian shillings for all local transactions.
This change, which must be implemented within the next year, is part of the government’s ongoing efforts to stabilize the national economy and reduce reliance on foreign currencies.
The directive, issued under Government Notice (GN) 198 of 2025, came into effect on March 28, 2025. It stems from amendments to the Bank of Tanzania Act, introduced through the Finance Act of 2024, which prohibits the use of foreign currency for transactions within the country. The move is aimed at strengthening the Tanzanian shilling and promoting its use in business dealings across various sectors.
Businesses across a wide range of industries, including real estate, tourism, financial services, and non-governmental organizations (NGOs), are affected by this new rule. These companies will need to revise any contracts involving foreign currency payments for goods or services within Tanzania to ensure that payments are made in Tanzanian shillings. The amendment must be completed within a year from the effective date of the regulations.
Bank of Tanzania Governor Emmanuel Tutuba confirmed the new rules, stressing that businesses will need to engage with the government to adjust their agreements accordingly. “This is an important step towards reducing reliance on foreign currencies and ensuring that all transactions within the country are conducted in Tanzanian shillings,” Tutuba said.
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The government’s goal is to make the Tanzanian shilling the primary currency used in domestic transactions, reducing the influence of volatile foreign currencies on the local economy. Businesses are advised to act quickly, reviewing their contracts, pricing structures, and financial systems to ensure compliance with the new regulations.
As the deadline approaches, companies are encouraged to seek guidance from the relevant authorities to avoid penalties and ensure a smooth transition to the new system. The move marks a bold step in Tanzania’s economic reforms and is expected to have a lasting impact on the country’s financial landscape.
