Business

The Tanzanian is economy one of the fastest growing economies in Africa. The things that make Tanzania unique and able to grow at a rapid pace are the wide array of natural resources as well as the geographic location ideal for importing and exporting goods. Below we have listed just a few of the most income- generating entrepreneurial business opportunities that you could invest in, but don’t forget to explore and formulate other ideas around the needs of the people. We have also included links and general information on the service that the government provides to get your business set up.

Some questions to ask yourself when thinking of investment opportunities in Tanzania:

What are your investment goals?

You can invest for personal sustainability and financial gain, or you can invest with the purpose of creating a service to local people. Both can be very rewarding, but you should have this in mind when scoping out opportunities.

What Are the needs of the people / community?

Is there a need for specialized training in a certain area? How about education in craftsmanship or a specific trade? When you figure out the needs of the people, you will always see your market clearly. Provide a service that people need, and you will always have customers.

What are the cultural and societal norms when it comes to business in TZ?

Tanzania is a very unique country in how they handle business matters. Are you up for the challenge? You must ask yourself if you have the willingness and the patience to understand the government and the how people do business here.

How Much Capital Will I need?

The answer to this question will greatly depend upon the type of business you’re starting, and the route in which you will be starting it. Will it be with the help of a local Tanzanian? Or will you register it as your own? You must factor in licensing, acquisition of land, building materials, renting and other things needed.

A good amount to have as your initial starting capital is about $10K. This should cover your certificates, permits, and government registration fees. Please note that this will not include your actual start up costs and materials.

Government and Legal Resources

1. Business Registration and Licensing Agency (BRELA) – The main authority for registering businesses, including sole proprietorships, partnerships, and companies. Visit: https://www.brela.go.tz

2. Tanzania Revenue Authority (TRA) – For tax registration, VAT, and compliance requirements. Visit: https://www.tra.go.tz

3. Tanzanian Investment Centre (TIC) – Provides information on incentives, tax exemptions, and investment opportunities for local and foreign investors. Visit: https://www.tic.go.tz

4. Tanzania Bureau of Standards (TBS) – If your business involves manufacturing or selling products, you’ll need to comply with quality standards. Visit: https://www.tbs.go.tz

5. TanzLII (Tanzania Legal Information Institute) – Offers access to Tanzanian business laws, regulations, and recent legal updates. Visit: https://www.tanzlii.org

Market Entry and Business Environment

6. U.S. Trade Guide for Tanzania – Provides insights into the business environment, opportunities, regulations, and market challenges. Visit: https://www.trade.gov/country-commercial-guides/tanzania

7. World Bank Tanzania Economic Overview – Offers data on economic trends and market conditions. Visit: https://www.worldbank.org/en/country/tanzania

8. Tanzania Chamber of Commerce, Industry, and Agriculture (TCCIA) – Helps businesses with networking, advocacy, and trade facilitation. Visit: https://www.tccia.com

ZIPA - Zanzibar Investment Promotion Authority (ZIPA) is a semi autonomous government institution operating under the  Zanzibar Investment Promotion and Protection Authority Act No. 14 of 2018. ZIPA is the main Government Institution responsible for promotion and facilitation of investment in Zanzibar. Click here for more info on business operation in Zanzibar, click here: https://www.zipa.go.tz/mission-vision/

 Step-by-Step Business Setup Guide

• Step 1: Business Structure Selection – Choose between sole proprietorship, partnership, limited liability company (LLC), or foreign company registration. BRELA provides guidance on this.

• Step 2: Name Search & Business Registration – Use BRELA’s online system to check business name availability and register.

• Step 3: Obtain a Taxpayer Identification Number (TIN) – Apply through the Tanzania Revenue Authority (TRA).

• Step 4: Business Licensing – Certain industries require sector-specific licenses, which can be obtained from respective regulatory bodies.

• Step 5: Register for VAT (if applicable) – Businesses exceeding a certain revenue threshold must register with TRA.

• Step 6: Open a Business Bank Account – Required for tax and financial transactions.

• Step 7: Obtain Necessary Permits – This could include health, safety, or environmental permits, depending on your business type.

• Step 8: Hiring Employees – Register with the National Social Security Fund (NSSF) and comply with labor laws.

Additional Resources

• Export and Trade Information: If your business involves importing/exporting, visit the Tanzania Ports Authority (https://www.ports.go.tz).

• Investment Climate and Incentives: Detailed reports on investment incentives are available on the Tanzania Investment Centre website.

• Sector-Specific Business Guides: If your business is in agriculture, mining, manufacturing, or energy, check the sector analysis on Trade.gov .

These resources will help you understand everything you need to successfully start and run a business in Tanzania. Let me know if you need guidance on a specific step!

a few Investment ideas

Opening your own restaurant or bar in Tanzania can be very affordable. With an abundance of organic produce, you can bring something healthy and unique to the table.