Dar es Salaam. Companies with ongoing contracts involving foreign currency transactions are now required to amend their agreements and switch to Tanzanian shillings within one year, following the issuance of new regulations by the government.
This directive, stemming from Government Notice (GN) 198 of 2025, took effect on March 28, 2025. It is part of efforts to implement changes introduced by the Finance Act of 2024, which amended the Bank of Tanzania Act to prohibit the use of foreign currency for transactions within the country.
The new rules apply to a wide range of businesses and entities, including those in real estate, tourism, hospitality, financial institutions, importers, exporters, and non-governmental organisations (NGOs). These companies are urged to take immediate action to comply with the regulations.
Bank of Tanzania Governor Emmanuel Tutuba confirmed the new rules, stating: “According to these regulations, ongoing contracts will require companies to engage in discussions with the government on how to adjust their agreements within one year.”
A key provision of the regulations, Regulation 5, mandates that businesses amend any contracts involving foreign currency for goods or services within Tanzania to reflect payments in Tanzanian shillings. This amendment must be completed within one year of the regulations’ effective date.
All businesses engaged in foreign currency transactions are advised to promptly review their contracts, pricing structures, and financial systems to ensure compliance and avoid penalties.
“The new rules are comprehensive and will impact a wide array of businesses, requiring them to undertake several key measures,” the regulations state.
Companies must amend existing contracts involving foreign currency payments, revise their pricing structures to reflect Tanzanian shillings, remove foreign currency quotations from marketing materials, and establish procedures to manage exchange rate risks.
Furthermore, businesses will need to conduct financial audits to identify non-compliant contracts and transactions. They will also need to update their accounting and billing systems to exclusively handle transactions in Tanzanian shillings.
The regulations clarify that all goods and services within Tanzania must be priced and paid for in Tanzanian shillings. Any pricing in foreign currency or requests for foreign currency payments for local transactions will be considered an offence.
However, there are exceptions. Transactions involving government contributions to regional organizations, purchases from duty-free shops, and dealings with embassies and international organizations will be exempt.
“The minister for Finance, in consultation with the governor of the Bank of Tanzania, has the authority to modify the list of permitted foreign currency transactions,” the regulations state.
Businesses are encouraged to take swift action to ensure full compliance within the one-year deadline.
