Practical business guidance for Tanzania.

Formal registration lets you open a business bank account, sign contracts, get a TIN, bid for work and grow with partners.

• Choose a structure. A registered business name suits a sole trader; a limited company separates personal and business liability and suits partners and investors.
• Register with BRELA. Business names and companies are registered with the Business Registrations and Licensing Agency, mostly through its online system. Prepare names, IDs (NIDA) and addresses.
• Get a TIN from TRA. The Tanzania Revenue Authority issues a Taxpayer Identification Number, needed for licences, tax filing and many contracts.
• Get a business licence. Depending on the type of business, the licence is issued by the national licensing system or by your local government authority. Ask which category applies to you.
• Sector permits. Some sectors need extra permits: transport (LATRA), food (health inspection), sports bodies (National Sports Council, BMT), and others.

Before spending money, write one page that answers nine questions. If you cannot answer them, the business is not ready yet.

• Who is the customer, and what problem do they pay to solve?
• What exactly do you sell, and why will they choose you?
• How will customers hear about you and buy (shop, WhatsApp, delivery)?
• What does one unit cost you, and what is your price?
• How many sales per month do you need to cover all costs (break-even)?
• How much starting capital do you need, and for how many months of running costs?
• Who are your competitors, and what do they charge?
• What are the three biggest risks, and what will you do about each?
• How will you measure success in 90 days?

Many small businesses sell a lot and still lose money because the price does not include every cost.

• List all costs: stock, transport, packaging, rent, power, phone and data, wages, mobile-money fees, losses and breakages.
• Unit cost = direct cost of one item + its share of fixed costs.
• Price = unit cost + margin. Check that the price is still competitive in the market.
• Example: a product costs TSh 6,000 to buy and TSh 1,500 in overheads per unit; a 25% margin on TSh 7,500 gives a price of about TSh 9,400.
• Review monthly. When costs rise, adjust prices early and explain the reason to customers.

A business that does not record money does not know if it is alive. Ten minutes a day is enough.

• Separate business money from personal money: a separate account or mobile wallet.
• Record every sale and every expense the same day, with date, amount and reason.
• Keep receipts and mobile-money transaction references.
• Pay yourself a fixed salary instead of taking cash from the till.
• Do a weekly cash-flow check: money in, money out, money needed next week.
• Keep a reserve of at least one to three months of fixed costs when you can.

Paying tax correctly protects the business from penalties and makes loans and contracts easier.

• Your TIN links you to TRA. Ask TRA which taxes apply to your size and sector (for example income tax, presumptive tax for small businesses, VAT above the registration threshold).
• Many businesses must issue receipts from an Electronic Fiscal Device (EFD) or approved system. Confirm whether this applies to you.
• Note filing and payment deadlines in a calendar. Late filing usually brings penalties and interest.
• Keep records for the period TRA requires; they are your proof in an audit.

Most Tanzanian customers discover businesses on their phones. Start where they already are.

• WhatsApp Business: catalogue, opening hours, quick replies and status updates with real photos and prices.
• Instagram and TikTok: short videos showing the product in use, the team, and happy customers (with permission).
• Google Business Profile: appear on maps when people search nearby.
• Referrals: reward customers who bring friends; word of mouth remains the strongest channel.
• Consistency: post on a schedule, reply within minutes, and always show prices clearly.

Borrowing can grow a good business and sink a weak one. Borrow for things that produce income.

• Options include banks, microfinance institutions, SACCOS (savings and credit cooperatives), group savings (VICOBA), government and youth/women funds, and equity investors.
• Compare the total cost: interest, fees, insurance and penalties, not only the monthly instalment.
• Lenders ask for records. Six months of clean bookkeeping and bank or mobile-money statements make approval easier.
• Never borrow from unlicensed lenders who keep your ID or charge unclear daily rates.

Your first employees shape the culture of the business.

• Write a simple job description and agree pay, hours and duties in writing.
• Follow labour and social-security obligations; ask a professional which apply to your staff.
• Set daily targets that are clear and measurable, and review them weekly.
• Control cash with simple systems: receipts, daily reconciliation, and separation of duties where possible.

Transport can be profitable, but money leaks through unrecorded cash, breakdowns, fines and expired documents.

• Agree a written daily target with each driver and record what is brought every day.
• Keep insurance, road licence, inspection and LATRA permits current; diarise expiry dates.
• Service by kilometres or months, whichever comes first. Preventive maintenance is cheaper than breakdowns.
• Calculate profit per vehicle each month: revenue minus fuel, service, repairs, fines and fees.
• MOFULI built MOFPORT to do all of this automatically, with live GPS during shifts.

Simple tools save hours each week, but they also bring new risks.

• Accept mobile money and keep a separate business number.
• Back up records (sales, customers, contracts) to the cloud or a second device every week.
• Use strong unique passwords and two-step verification on email, banking and social media.
• Never share PINs or one-time codes. No genuine bank, network or MOFULI staff will ask for them.
• A simple website or booking page builds trust; MOFULI's technology desk can help.