Tanzania is emerging as one of East Africa’s most promising destinations for global exporters, thanks to its strategic location, expanding infrastructure, and growing consumer base. With a population of over 62 million and a stable macroeconomic environment, the country has transitioned from low-income to lower-middle-income status and is steadily implementing an industrialisation agenda aimed at attracting foreign capital and expanding domestic production.
However, while the opportunities are considerable, exporters, trade credit insurers, and lenders must remain aware of the legal, regulatory, and operational challenges associated with doing business in Tanzania—particularly when commercial disputes or payment defaults occur.
Tanzania’s Strategic Trade Position
Tanzania’s geographic position gives it natural access to several landlocked neighbours—including Zambia, Malawi, the Democratic Republic of Congo, Rwanda, Burundi, and Uganda—making it a key logistics and distribution hub for the region. The Port of Dar es Salaam remains one of East Africa’s busiest and most important entry points for goods.
The economy is driven by agriculture, mining, construction, telecommunications, and energy. While gold and other minerals are major exports, Tanzania also has strong demand for imports, which include:
- Petroleum and petroleum products
- Food and agricultural goods
- Construction materials
- Machinery and transport equipment
To support its industrialisation goals, Tanzania has prioritised infrastructure investment and aims to become a regional manufacturing hub. Exporters with value-added technologies—particularly in agro-processing, mining services, industrial machinery, and renewable energy—will find strong demand.
Exporters may also benefit from Tanzania’s membership in several regional and international trade blocs – such as the East African Community (EAC), and the African Continental Free Trade Area (AfCFTA) – which aim to reduce tariff and non-tariff barriers and enhance market access across the Continent.
Trade risk landscape: navigating operational and market complexity
While Tanzania offers long-term trade potential, exporters and credit providers should remain alert to practical market frictions that can impact performance and payment timelines.
Regulatory and administrative unpredictability is a recurring challenge. The government has introduced frequent amendments to tax and import regimes — including changes to VAT deferment procedures, the expansion of digital tax systems, and product-specific adjustments to tariffs and compliance requirements. These changes can affect importers landed costs and, in some cases, their ability to meet payment obligations. For example, this year’s Finance Act (typically enacted annually each July) introduced new levies on imported industrial inputs and expanded withholding tax obligations — potentially altering cost structures and pricing models. A separate directive issued by the Tanzania Bureau of Standards in early 2025 imposed strict penalties for goods arriving without Certificates of Conformity (CoC).
Customs and port delays remain a risk despite ongoing reforms. Periodic slowdowns, documentation mismatches, or physical inspections at the Port of Dar es Salaam can lead to shipment backlogs, increased demurrage, and supply chain disruptions — particularly for time-sensitive goods.
Access to foreign exchange can at times be a constraint for importers, particularly for larger or recurring transactions in USD and EUR. Periodic tightness in dollar liquidity has been reported, reflecting global financial conditions, infrastructure-related FX demand, and Tanzania’s import dependency. This can occasionally delay cross-border payments and complicate trade flows.
At the same time, the macroeconomic backdrop remains relatively resilient. The Bank of Tanzania actively intervenes in the interbank market to stabilise the shilling and ensure orderly conditions, while the country’s foreign exchange reserves — equivalent to around 4.6 months of import cover — remain above regional adequacy benchmarks. This proactive policy framework has helped to limit volatility and maintain overall stability in the trade environment.
Whilst the structural challenges don’t diminish Tanzania’s value as a trade destination, they do reinforce the importance of clear commercial terms, reliable and verified counterparties, and proactive monitoring of market conditions.
Legal framework for commercial contract enforcement
Tanzania has established legal mechanisms for enforcing commercial obligations, but the process can be time-consuming and resource intensive.
The Court System
Commercial disputes are typically handled by the Commercial Division of the High Court of Tanzania, based in Dar es Salaam, with satellite registries in Arusha and Mwanza. This court has exclusive jurisdiction over civil cases involving commercial matters exceeding TZS 100 million.
Although the Commercial Court was created to streamline business litigation, debt recovery cases can take 18–36 months to resolve through litigation due to backlog, adjournments, and procedural delays. Appeals may further delay enforcement.
Court filing fees vary by claim value and can reach up to 3% of the claim amount, not including legal representation costs.
While local judgments are enforceable, challenges remain when it comes to execution, particularly where debtors lack clear assets or when collateral recovery is contested.
Arbitration and Foreign Awards
Tanzania is a signatory to the New York Convention, meaning that foreign arbitral awards are generally recognised and enforceable, subject to local court confirmation. However, procedural friction and case-by-case scrutiny may still delay enforcement.
Tanzania is not a signatory to the Singapore Convention on Mediation, and mediated settlements currently lack streamlined enforceability under Tanzanian law.
Enforcement of Foreign Judgements
In Tanzania, the enforcement of foreign judgments is governed primarily by the Reciprocal Enforcement of Foreign Judgments Act (REFJA), which applies only to judgments from a limited group of countries, including the UK and select Commonwealth states.
Judgments from non-REFJA jurisdictions—such as the U.S., China, or EU nations—cannot be directly registered and must instead be enforced via a fresh lawsuit under the doctrine of obligation, treating the foreign judgment as evidence of debt. Recognition and enforcement are subject to conditions including jurisdiction, finality, and alignment with Tanzanian public policy.
Collateral and Security Interests
Creditors may take security over both movable and immovable property. However, Tanzania does not yet have a fully functional, centralized public collateral registry, which limits transparency around asset pledges.
While the Business Registrations and Licensing Agency (BRELA) maintains company records and some charges, gaps exist in enforcement tracking — making collateral-based lending and enforcement riskier than in more developed jurisdictions.
Final thoughts
Tanzania presents real opportunities for exporters and their financial partners, particularly given its strategic position, growing consumer base, and industrial ambitions. At the same time, navigating this market requires careful management of trade risks—from due diligence on counterparties to the enforcement of contractual rights when payments fall overdue.
Our team supports exporters, credit insurers, and lenders by providing cross-border debt recovery assistance, local enforcement insight, and reliable due diligence on Tanzanian entities. Whether you’re entering the market or responding to a default, having experienced, locally informed support can make a critical difference.
If you need guidance on managing trade credit exposure or recovering payments in Tanzania, please contact your local Case Manager or email info@recoveryadvisers.com.
