The Finance Act, 2024 has amended the Bank of Tanzania Act to require all payments within Tanzania to be made using Tanzanian Shillings (TZS). This is one of the measures to address the shortage of foreign currencies in Tanzania. Effectively, it is illegal to transact in other currencies including USD and EURO. Regulations will shortly be issued to provide further guidance.
Foreign businesses and entities operating in Tanzania should be mindful of the legal implications of the above measure including imposition of penalties. The measure is an addition to other measures introduced by the Bank of Tanzania which include Regulation 3(5) of the Foreign Exchange Regulations, 2022 prohibiting residents other than a bank or financial institution to open or maintain an account outside the United Republic of Tanzania except for the settlement of securities in the prescribed territory (East African Community or Southern Africa Development Community Countries) or when permitted by the Governor of BOT.
