The Bank of Tanzania has granted a significant exemption under the new Foreign Exchange Use Regulations, providing vital relief for the country’s tourism industry.
The move follows sustained advocacy by the Tanzania Association of Tour Operators (TATO), which warned that strict limits on foreign currency use could hamper operations and competitiveness.
In a letter signed on 8 July by Deputy Governor Yamungu Kayandabila, the Bank confirmed that resident tour operators can continue to use US dollars on behalf of non-resident tourists for domestic payments. They may also purchase tourism vehicles in foreign currency from local suppliers. Meanwhile, tourists still have the choice to pay in Tanzanian shillings, which remain legal tender.
The clarification addresses growing concerns within the sector after the introduction of the Foreign Exchange Use Regulations in April 2025, which sought to reinforce the use of the Tanzanian shilling and limit domestic transactions in foreign currencies. Stakeholders argued that without an exemption, tour operators catering to international visitors would face operational disruptions and added costs.
Also read: Tanzania Launches Technology Needs Assessment for Inclusive Development
The tourism sector is one of Tanzania’s largest economic pillars, contributing over 17% to GDP and employing more than 1.5 million people. TATO says the exemption offers practical clarity on permitted transactions and removes uncertainty for operators managing foreign clientele.
“This exemption sets a precedent for how future policy frameworks can be more inclusive and tailored to the needs of vital economic sectors,” TATO said in a statement. It added that workshops and training sessions will be organised to help members comply with the new rules and ensure consistent application across government institutions.
The Bank of Tanzania and the Ministry of Finance will maintain ongoing dialogue with TATO to monitor implementation and address any emerging challenges, reinforcing the sector’s role in driving economic growth.
