Category: The Citizen

Arusha. The East African Community (EAC) has launched the 2026 Regional Quality Awards, a new initiative aimed at recognising enterprises across the region that demonstrate excellence in quality management, standards compliance, innovation and continuous improvement.

The awards are designed to strengthen a culture of quality among East African businesses, enhance the competitiveness of locally produced goods and services, facilitate regional trade and deepen economic integration within the bloc. They will also promote the adoption of internationally recognised standards, encourage innovation and improve market access for firms operating across Partner States.

The launch was held during the 28th Meeting of the East African Standards Committee (EASC) on May 13, 2026, in Arusha, bringing together EAC officials, development partners and private sector stakeholders. The initiative is supported by the European Union through the EUEAC Market Access Upgrade Programme (MARKUP II) under the Global Gateway initiative and is being implemented by the International Trade Centre (ITC) in collaboration with regional and national partners, including the East African Business Council (EABC).

Speaking during the launch, EAC Director of Customs and Acting Director of Trade, Flavia Busingye, said the awards go beyond recognition to strengthening institutional and enterprise capacity across the region. She said the programme aligns with industrialisation strategies, regional integration efforts and the broader goal of enhancing competitiveness in African and global markets.

“Quality is the foundation of competitiveness. Even where the term may not be explicitly stated in some policy instruments, it is reflected in our industrialisation strategies, integration agenda and efforts to build a competitive economy,” she said.

Ms Busingye added that the awards provide a platform for the private sector to be recognised for producing goods and services that meet international standards, thereby encouraging business growth and investment. She said the 2026 cycle is expected to attract more than 300 participants, mainly from the private sector, including small and medium enterprises (SMEs) and women-led businesses.

“We must ensure inclusivity. That is why we emphasise the participation of SMEs and emerging enterprises as key drivers of a competitive and inclusive economy,” she said.

She noted that the process will allow companies to assess their systems, improve operations, strengthen innovation and better position themselves for regional and international markets. The 2026 edition will feature four main categories: Product of the Year, Company of the Year, Service Excellence Awards, and Exporters in Agro-processing, covering both large enterprises and SMEs.

The awards will be implemented in two stages, with national competitions coordinated by national standards bodies in Member States, while regional winners will be selected by the EAC Secretariat. Applications will run until June 30, 2026. National winners will be announced on August 30, 2026, while regional winners will be unveiled on September 30, 2026. The grand awards ceremony is scheduled for October 2026 in Kigali, Rwanda, alongside the EAC MSME Trade Fair.

EAC Director of ICT, Martin Kimanya, said the initiative is expected to enhance market access, promote innovation and strengthen consumer confidence in East African products. He said that it will further position East Africa as a competitive production hub while promoting inclusive and sustainable economic growth across Partner States.

Rwanda’s Ministry of Trade and Industry Director of Domestic Trade, Cassien Karangwa, confirmed that Rwanda has agreed to host the ceremony and pledged full commitment to ensuring its successful organisation. He said the country is ready to deliver a well-coordinated event that reflects the importance of the awards in advancing regional integration and economic development.

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Dar es Salaam. President Samia Suluhu Hassan has dissolved the Board of Trustees of the Public Service Social Security Fund (PSSSF), just about 14 months since it was inaugurated.

According to an official statement issued by Chief Secretary Moses Kusiluka, the decision takes effect from 14 May, 2026. The statement was released by the Acting Director of Presidential Communications at State House, Shaaban Kissu. The current PSSSF Board of Trustees was inaugurated in March, 2025 under Ms Joyce Mapunjo as its Chairperson.

The PSSSF was formed in 2018 after the enactment of the Public Service Social Security Fund Act, 2018, which consolidated several former public service pension schemes into a single fund for government and public service employees. The Act, which came into force in 2018, also established the governance structure of the fund, including the Board of Trustees mandated to oversee management of contributions, investments, and payment of retirement benefits to public servants.

The Public Service Social Security Fund itself was created following wide-ranging pension reforms that merged the Public Service Pension Fund (PSPF), Local Authorities Pension Fund (LAPF), Government Employees Provident Fund (GEPF), and the PPF Pensions Fund into a unified system aimed at improving efficiency and financial sustainability. Since its establishment, the Board has been responsible for providing oversight of the fund’s operations under the supervision of the Ministry responsible for labour and social security.

The statement did not state the reason behind the dissolving of the board. .

Arusha. Police in Arusha are investigating the death of businessman Sifaeli Christofa Mollel, 48, whose badly decomposed body was discovered inside a house linked to an alleged traditional healer in Muriet area, Arusha City.

Mr Mollel, a resident of Kijenge Street in Kimandulu Ward, disappeared from his home on May 3, 2026. His body was found seven days later, on May 10. Arusha Regional Police Commander SACP Justine Masejo confirmed the incident, saying investigations were underway to establish the circumstances surrounding the death. “We have already launched investigations to determine the cause of the incident and those involved.

Legal action will be taken against anyone found responsible,” he said by phone. The deceased’s brother, Augustino Onesmo Simon, said the family started searching for Mr Mollel immediately after he went missing, including circulating his photographs on social media platforms.

“On Monday, while following up the matter at the police station, we received a call informing us that a badly decomposed body had been found inside a house and taken to Muriet Health Centre mortuary,” he said. Mr Simon said the family was initially informed that the deceased was believed to be a traditional healer found dead at his residence in Muriet.

“Because our relative was neither a traditional healer nor a resident of Muriet, we hesitated. Later, we decided to go and confirm for ourselves,” he said.

Accompanied by police officers, the family visited the mortuary and identified the body as that of Mr Mollel. “We found his body badly swollen and decomposed,” he said.

The family later visited the house where the body was discovered and reportedly found the deceased’s shoes, traditional healing items and business licences. According to Mr Simon, the names appearing on documents found inside the house differed from those of the deceased.

“Our relative was Sifaeli Mollel, but local government records, tenancy details and licences found in the house bore the name Isihaka Hamis Mwitu,” he said. He added that the mystery deepened after the deceased’s mobile phone reportedly continued ringing for several days after the body had been discovered, with signals traced in different parts of Arusha.

“If he died inside that house, who was moving around with his phone?” he asked. The family suspects Mr Mollel may have visited the house as a client before being killed and robbed of his belongings.

A resident of the area, Leonard Swai, said the alleged traditional healer was not well known in the neighbourhood because he was not a permanent resident. “I was among those who broke the door after residents noticed a strong smell and many flies coming out through openings in the house,” he said.

“We peeped through a small opening near the window and saw a body inside before informing local leaders and the police.” Mr Swai said the body was found lying inside the room, partially covered with a kitenge cloth alongside items associated with traditional healing practices.

Muriet Street chairman Joseph Emmanuel said he received reports from residents on Sunday about a strong smell and flies coming from the house. “After receiving the information, I contacted the police.

When they arrived and broke the padlock, we found the body severely swollen, lying on its back with the chest uncovered and partly covered with a kitenge cloth,” he said. Mr Emmanuel said efforts to trace the tenant had proved difficult because even the landlord allegedly lacked reliable contact details.

He urged landlords to ensure tenants register with local leaders to strengthen security and ease investigations when incidents occur. “We are urging the police to intensify efforts to trace the traditional healer who had been living there because available information indicates the deceased had gone there seeking services,” he said.

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Dar es Salaam. Financial and capital market experts have urged small and medium enterprises (SMEs) in Tanzania to strengthen governance, improve financial reporting and formalise their operations if they are to attract sustainable financing and long-term investment capital.

The experts made the remarks during a panel discussion organised by the Dar es Salaam Stock Exchange (DSE) on initiatives designed to improve access to financing for growing businesses. The discussion focused specifically on the DSE Enterprise Acceleration Programme (DEAP) and the Endeleza Portal.

The discussion brought together capital markets and enterprise development specialists who said many SMEs continue to face financing challenges despite having viable business ideas and growth potential, largely because they lack proper governance systems, reliable records and investor readiness. DSE business development and sustainability professional, Mr Innocent Mbele, said the DSE was positioning DEAP and the Endeleza Portal as practical tools to bridge the gap between SMEs and financiers.

“The goal is to help businesses prepare, become visible, and access the right type of capital for their growth journey,” he said. According to him, many enterprises are not yet ready to access public capital markets, but still require structured support to improve their operations and attract suitable financing.

Through DEAP, participating businesses receive training and technical support in areas such as corporate governance, compliance, financial reporting, business strategy, investor readiness and capital raising. The Endeleza Portal, meanwhile, serves as a digital private market platform where SMEs can register and showcase their businesses to potential financiers, including private equity firms, venture capital funds, angel investors and development finance institutions.

FSD Tanzania Knowledge Management Manager Bernie Mshana, said access to finance goes beyond the availability of funds, noting that many SMEs fail to attract investors because they lack transparency and credible business information. “For SMEs to attract financing, they need more than ambition.

They need proper records, clear growth plans, good governance, and access to reliable market information,” she said. She added that platforms such as Endeleza could help reduce the information gap that often exists between businesses and financiers.

The discussion comes at a time when Tanzania is placing greater emphasis on private sector growth, industrialisation, innovation and job creation, with SMEs playing a central role in employment and local value addition. However, experts noted that many businesses remain excluded from conventional financing due to weak financial structures, limited collateral and low investor visibility.

CRDB Bank Plc Senior Manager for Securities Brokerage Services Imani Muhingo, said many enterprises still have limited understanding of the financing instruments available beyond traditional bank lending. “Many businesses are not fully aware of the different financing instruments available in the market.

Beyond traditional bank loans, SMEs can explore structured financing, private capital, bonds, and eventually public market opportunities depending on their stage of growth,” he said. He noted that financial institutions and capital market intermediaries have a responsibility to help enterprises understand the broader financing ecosystem and prepare for long-term capital access.

The experts also highlighted the importance of sector-specific support in improving the effectiveness of SME financing programmes. The 2026 DEAP cohort is expected to focus on sectors aligned with national development priorities and investor appetite, including mining, agriculture, fintech and real estate.

Under the programme, mining firms will receive support on governance, geological documentation and capital market financing options, while agribusinesses will be guided on expansion financing, working capital and value-chain investment opportunities. Fintech companies are expected to receive support on scalability, regulatory readiness and investor engagement, while real estate enterprises will be exposed to structured financing models and investment partnerships.

Africapital chief consultant Adam Mayingu said investors increasingly assess businesses on governance quality, management capability and accountability rather than business ideas alone. “Investors are looking for businesses that are scalable, properly structured, and able to demonstrate both growth potential and accountability,” he said.

He added that SMEs must strengthen their internal systems before approaching financiers if they want to improve their chances of securing investment. .

Dar es Salaam. The World Boxing Council (WBC) has stripped Tanzanian professional boxer Fadhili Majiha of his title after failing to defend it since winning the crown in 2023. The decision was confirmed by WBC vice president Houcine Houichi, who said the council had exhausted all efforts to engage the boxer’s management before taking action.

He explained that WBC repeatedly communicated with Majiha’s camp over mandatory defence obligations, but the efforts did not yield results. Houichi, who also serves as president of the African Boxing Union (ABU), said Majiha continued to take part in non-title fights instead of arranging a required defence, leaving the council with no option but to strip him of the belt.

“We made several efforts to communicate with the boxer’s management team concerning the defence of the title, but unfortunately our efforts proved futile,” said Houichi. “He continued to feature in non-title bouts while the championship remained inactive for a long time.

Under WBC regulations, we had no choice but to take this decision.” He added that Tanzania has many talented professional boxers, but weak management structures often hinder their progress at international level.

“I know Tanzania has so many talented boxers, but they lack professional management,” he said. “A boxer can work hard to win a title, but can also lose it through poor planning and failure to defend it in time.

” The development is a setback for Majiha, who won the WBC title in 2023 and had raised hopes of becoming one of Tanzania’s leading figures in international boxing. The decision now leaves him without the belt and raises questions over his future in the sport.

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Morogoro. A bodaboda rider identified as Ally Kambi (24), a resident of Kingolwira in Morogoro Municipality, is believed to have been killed and his motorcycle stolen by unknown individuals who allegedly hired him for a trip in the Mkono wa Mara area in Morogoro District.

A family account from the deceased’s uncle, Mr Shukuru Msonga, said the young man was hired by an unknown person on the night of Monday, May 11, 2026, and never returned home. His body was later discovered on Wednesday, May 13, 2026, in a bush in the Mkono wa Mara area, bearing signs of injuries.

“After he failed to return home for a full day, we reported the matter to the local government office and police station, and a search began. We looked for him in different areas, including hospitals, and informed bodaboda groups.

Eventually, we were told a body had been found in the bush,” said Mr Msonga. He added that when the family arrived at the scene, they identified the body as that of their relative, noting that it bore injuries.

Nearby, they found a stick and a blood-soaked T-shirt. The attackers are also alleged to have stolen his motorcycle, an unknown amount of money, and his mobile phone.

Another deceased’s uncle, Mr Ahmed Ramadhani, said he received news of his disappearance on May 11, 2026, and joined search efforts until the body was found in the Mkambarani area. “Death is inevitable for everyone, but this particular death is very painful because he was robbed of his life and his property, including his motorcycle.

He was a disciplined, calm young man who did not like conflict. He has left behind a wife and children,” he said.

Some bodaboda riders who worked with him said the deceased was not in the habit of staying late at the stage and usually returned home early, which is why they became concerned when he failed to return. One rider, Mr Fadhil Shabaani, said the deceased left the Kingolwira stage with a passenger on the day of the incident and never returned.

“The next morning, we heard that Ally was being searched for. We all joined his family in the search.

Later, we received information that his body had been found in the bush and his motorcycle stolen. His family confirmed the body was his,” he said.

He added that the motorcycle the deceased used was under a temporary arrangement from a friend who had lent it to him for a few days for work. Mr Shabaani said incidents of bodaboda killings and motorcycle theft in Kingolwira had previously reduced, making riders less cautious, but noted that this incident had renewed fear and would force them to be more vigilant.

Morogoro Regional Police Commander Andrew Kantimbo confirmed the incident, saying investigations were ongoing to identify those responsible. .

Dar es Salaam. The Tanzania Ports Authority has cut the Port Infrastructure Development Levy (PID) from nine percent to 4.

5 percent of customs duty following concerns from traders and logistics stakeholders over rising import costs, even as the authority pushes ahead with a Sh16.1 trillion port expansion programme. TPA director of marketing and communications, Dr George Fasha, said the revised levy followed months of consultations with importers, clearing and forwarding agents, transporters and other players in the maritime logistics chain.

The discussions, conducted between October and December 2025, centred on concerns that the initial levy structure would significantly increase the cost of imports when combined with other customs-related charges. “Following consultations with stakeholders, TPA has revised the levy from nine percent to 4.

5 percent of customs duty. This is aimed at ensuring efficiency in trade facilitation while sustaining investment in critical port infrastructure,” Dr Fasha told journalists in Dar es Salaam.

He said the authority reviewed all submissions before settling on the revised rate, which seeks to balance affordability for businesses with the need to finance long-term infrastructure development. Despite the reduction, the levy will remain a major source of funding for Tanzania’s ambitious port modernisation drive, which seeks to expand capacity at major seaports and inland logistics facilities.

TPA plans to invest Sh16.1 trillion in upgrading and expanding port infrastructure across the country, including facilities in Dar es Salaam, Tanga, Mtwara and several inland dry ports. According to Dr Fasha, about Sh11.2 trillion of the investment will be financed through TPA revenues, including collections from the revised levy, while S.

9 trillion is expected from private sector participation under Public-Private Partnership arrangements. The investment push comes amid rapidly growing cargo volumes that have placed mounting pressure on existing infrastructure.

Between July 2025 and March 2026, Tanzania’s ports handled 29.6 million tonnes of cargo, with projections indicating the volume could exceed 32.8 million tonnes by the end of the current financial year. Container traffic also surpassed one million twenty-foot equivalent units (TEUs) within nine months, signalling increased regional trade activity and improved port performance.

However, the surge in cargo has exposed severe capacity constraints, particularly at the Dar es Salaam Port, where an average of 20 vessels are reportedly waiting offshore daily due to limited berthing space. Road congestion linked to port operations has also intensified sharply.

Truck movements connected to port activities have increased from about 1,000 per day five years ago to nearly 3,000 currently, placing pressure on key transport corridors including Kurasini, Mandela Road, Morogoro Road and the Dar es SalaamChalinze highway. At the Tanga Port, congestion has also emerged for the first time, with at least six vessels reportedly waiting offshore for docking space.

Dr Fasha said the rising traffic demonstrated both growing confidence in Tanzania’s ports and the urgent need for infrastructure expansion. “This growth is a positive indicator for the economy, but it also clearly shows that infrastructure must expand at the same pace to avoid bottlenecks,” he said.

To address the challenges, TPA is implementing several projects, including the construction of four new berths, numbers 12 to 15, at the Dar es Salaam Port, additional berthing space covering 500 metres, oil reception and storage facilities, and an internal rail terminal. Other planned projects include the development of a specialised cargo port at Kisiwa-Mgao in Mtwara, expansion works at Tanga Port, and the establishment of dry ports at Kurasini Phase II, Kwala, Ihumwa and Chuo cha Polisi.

TPA is also advancing plans for the Bagamoyo and Mwambani ports, alongside supporting road infrastructure such as a proposed logistics corridor linking Dar es Salaam Port to Chalinze to ease traffic congestion. Dr Fasha warned that without a dedicated infrastructure levy, the authority would have to rely solely on operational savings to finance projects, a process he said could take up to a decade to complete a single major development.

He said delays in expanding infrastructure could undermine economic growth as demand for import, export and transit cargo continues to rise alongside industrialisation. “As the economy grows, the demand for efficient port services increases.

Without timely investment, ports risk becoming bottlenecks to economic activity,” he said. The authority projects cargo volumes could rise to 62 million tonnes by the 2030/31 financial year, nearly double current levels.

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Dar es Salaam. Tanzania is preparing to undertake one of the largest healthcare infrastructure projects in its history after the government unveiled plans to construct a new specialised and super-specialised national hospital at a cost of Sh1.2 trillion.

The ambitious project is also expected to strengthen Tanzania’s position as a regional medical tourism hub by expanding access to advanced treatment services that have traditionally forced many patients to seek care abroad. The proposed facility is expected to provide highly specialised services, including organ transplants, cancer treatment, cardiac care, neurology and kidney disease management, while easing pressure on the existing Muhimbili National Hospital, which remains the country’s main referral facility.

Several Members of Parliament on May 12, 2026 welcomed the project, describing it as a long-overdue investment in the health sector. However, they also called on the Ministry of Health to provide a detailed breakdown of how the funds will be utilised to ensure transparency and public accountability.

The planned hospital is expected to reduce patient waiting times, expand bed capacity, increase the number of operating theatres and improve diagnostic services through the introduction of modern medical technologies. Presenting the Ministry of Health’s 2026/2027 budget estimates in Parliament on May 11, Health Minister Mohamed Mchengerwa said the decision to construct a new Muhimbili followed a comprehensive assessment of service delivery challenges facing the current facility.

According to the minister, the assessment identified ageing infrastructure, scattered buildings, high maintenance costs, recurring repairs and limitations in accommodating modern healthcare technologies as some of the key challenges affecting service delivery. “The government’s ambition is to revolutionise healthcare delivery by constructing a modern Muhimbili hospital of international standards that will serve both local and foreign patients,” Mr Mchengerwa told Parliament.

He said the project is expected to be implemented over a five-year period, with the funds directed towards the construction of new buildings, installation of advanced medical systems and procurement of modern medical equipment. Mr Mchengerwa said Sh908.6 billion of the project financing would be secured through a concessional loan, while the government would contribute Sh292 billion.

He added that part of the government’s contribution would not necessarily be in cash, but through land preparation, tax exemptions and waivers on import duties for specialised medical equipment required for the project. Lawmakers across political lines welcomed the proposal, saying it had the potential to significantly improve healthcare services and reduce the burden on patients who travel abroad for treatment.

Special Seats MP Mariam Nassoro Kisangi said the existing Muhimbili infrastructure, some of which dates back more than a century, no longer adequately serves the growing healthcare needs of the country. “While some say Muhimbili is already large, its facilities are scattered and no longer suitable for modern healthcare demands,” she said.

Morogoro Rural MP Hamis Taletale said the project would be embraced by many Tanzanians because Muhimbili continues to serve as the country’s principal referral hospital. Special Seats MP Hawa Mchafu Chakoma noted that discussions on the project had been ongoing since 2020 and urged the government to provide Parliament and the public with a clear financial breakdown of the planned expenditure.

“This is a major national investment and the peopeldeserve to understand how the funds will be spent,” she said. In his presentation, Mr Mchengerwa said the new facility would help reduce the number of patients referred overseas for specialised treatment, improve the efficiency of healthcare delivery and create a better working environment for healthcare professionals.

He also said the project would contribute to foreign exchange earnings by attracting patients from neighbouring countries seeking advanced treatment in Tanzania. The minister further revealed that the government conducted benchmarking studies on 16 hospital development projects in 15 countries across Africa, Europe and Asia before finalising the proposal.

According to the assessment, construction costs for comparable hospitals in other countries ranged between $3,000 and $7,000 per square metre, while the projected construction cost for the new Muhimbili hospital stands at approximately $1,819 per square metre. The planned facility is expected to cover 115,000 square metres.

Mr Mchengerwa defended the scale of the investment, saying the project represented a strategic and cost-effective decision aimed at improving long-term healthcare outcomes. “This is not a sign of misuse of public funds but a prudent investment for the nation,” he said.

The project marks one of the government’s most ambitious healthcare undertakings in recent years and signals a broader push to modernise Tanzania’s health sector amid rising demand for specialised medical services. .

Dar es Salaam. Tanzania’s economy remains resilient against global shocks linked to the Middle East conflict, even as elevated oil prices and supply chain disruptions continue to affect trade, inflation and fiscal pressures, according to the International Monetary Fund (IMF).

An IMF team led by Mr Nicolas Blancher visited Tanzania for discussions on the sixth and seventh reviews under the Extended Credit Facility (ECF), and the third and fourth reviews under the Resilience and Sustainability Facility (RSF). Completion of the reviews would unlock about $375.5 million in financing, subject to approval by the IMF Executive Board.

At the conclusion of the mission, Mr Blancher said economic growth in 2026 is projected at 5.9 percent, while inflation is expected to rise to 4.

7 percent. The current account deficit is also forecast to widen to 2.

9 percent of GDP, largely due to spillover effects from the Middle East conflict. “Higher oil and fertiliser prices, as well as disruptions to global aviation and value chains, will weigh on activity in the agriculture, tourism and transport sectors, and contribute to inflationary and external pressures,” he said.

Mr Blancher said steadfast budget implementation, including maintaining strong tax revenue performance, remains critical in safeguarding priority social spending on health, education and social protection, while supporting fiscal sustainability. “Timely payment of tax refunds and continued clearance of domestic arrears should also support private sector activity.

A mildly stimulatory monetary policy stance remains appropriate as long as price stability is preserved,” he said. The IMF projects that Tanzania’s medium-term outlook will remain favourable, although risks are tilted to the downside.

“Growth would reach its potential of 6.3 percent over the medium term, supported by strong performance in mining, agriculture and tourism, while inflation is expected to remain within the Bank of Tanzania’s target range of 3 to 5 percent,” Mr Blancher said.

He added that despite recent oil price volatility, the current account deficit is expected to remain below 3 percent of GDP, supported by elevated gold prices. However, external risks include a slowdown in the global economy, continued trade fragmentation, geopolitical tensions and possible declines in foreign development assistance.

Domestic risks include fiscal pressures, social instability and delays in implementing reforms. Building on progress achieved under the ECF- and RSF-supported programmes, Tanzania’s long-term growth trajectory will depend on accelerating structural reforms aligned with the country’s Development Vision 2050. Key priorities include expanding domestic revenue mobilisation to create fiscal space for priority social and development spending while sustaining infrastructure investment; strengthening public financial management and investment efficiency; reinforcing the independence and credibility of monetary institutions; and improving the overall business and investment climate.

The IMF also underscored the importance of continued reforms to address climate-related vulnerabilities, including scaling up social protection systems and promoting investment in renewable energy to enhance long-term resilience and sustainability. During the mission, IMF officials met Finance Minister Ambassador Khamis Mussa Omar, Bank of Tanzania Governor Emmanuel Tutuba, senior government officials, development partners, private sector representatives and civil society organisations.

The IMF team expressed appreciation to the Tanzanian authorities and stakeholders for what it described as candid and constructive discussions. .

Dar es Salaam. Tanzania’s spending on imported household vehicles rose sharply in the first quarter of 2026, driven by strong demand for fuel-efficient cars as consumers respond to rising fuel costs and anticipated tax increases.

Data from the Bank of Tanzania show imports of motorcars for household use increased by 53.9 percent to Sh352.84 billion in March 2026, up from Sh229.3 billion in the first quarter of 2025. The figure was also 77.8 percent higher than the Sh198.42 billion recorded in March 2024. The figures, contained in the central bank’s Statistical Bulletin for the quarter ending March 2026, point to growing demand for private vehicles despite mounting economic pressures linked to fuel prices and living costs. Car dealers say the market has undergone a noticeable shift over the past two years, with buyers increasingly preferring smaller vehicles that consume less fuel.

City car dealer, Rashid Mwengile, said high fuel prices have changed purchasing patterns, pushing consumers away from larger engine vehicles toward compact models such as the Toyota IST, Toyota Ractis, Mazda Demio, and Mazda Verissa. “The industry is very active right now, but people are mostly importing small vehicles that consume less fuel,” he said.

“Many buyers are avoiding larger engine cars because fuel has become too expensive.” According to him, the trend accelerated after sharp increases in fuel prices over the past year.

Data from the energy regulator show petrol prices in Dar es Salaam stood at Sh2,996 per litre in March 2025 before easing slightly to Sh2,864 per litre in March 2026. However, following the IranUS conflict and disruptions in global oil markets, prices surged to about S,115 per litre this month. Mr Mwengile said some buyers are also rushing to import vehicles ahead of expected tax adjustments in July, amid fears that import duties and registration costs could rise in the new financial year.

Another dealer, Patrick Mashili, said demand for Subaru vehicles has also grown significantly in the past two years, especially among younger urban motorists. “Subaru has become extremely popular, alongside models like the Toyota IST, partly because of resale value and the availability of spare parts,” he said.

However, he noted that the increase in fuel prices has forced some motorists to reduce vehicle usage or temporarily park their cars to minimise operating expenses. Mr Mashili said Japan remains Tanzania’s leading source of imported vehicles due to its large supply of affordable used cars, reliable quality and efficient export systems that favour Tanzanian dealers and consumers.

Meanwhile, the BoT bulletin also showed a sharp rise in imports of motorcycles and cycles fitted with auxiliary motors, underlining growing demand for alternative and relatively cheaper modes of transport. Imports in that category increased by 68.9 percent to Sh137.32 billion in March 2026 from Sh81.29 billion in March 2025. Compared to March 2024, when imports stood at Sh85.4 billion, the latest figure represents a 60.8 percent rise.

Analysts say the increase in motorcycle imports reflects the rapid expansion of the boda boda transport sector, rising urban mobility needs, and growing preference for lower-cost transport options amid economic uncertainty. The trend also highlights Tanzania’s increasing dependence on imported transport equipment as demand for mobility continues to rise across urban and semi-urban areas.

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