Trading Business in Tanzania

1. Car Dealer Business Opportunities in Tanzania: Exploring the Growing Market

The car dealer business in Tanzania presents significant opportunities for those looking to invest in a growing and dynamic market. As one of the largest economies in East Africa, Tanzania’s demand for motor vehicles continues to expand due to factors like increased urbanization, rising incomes, and a growing middle class. The country’s automotive market primarily relies on imports, with new and used vehicles being sourced from major global markets such as Japan, the United Arab Emirates, and China.

Market Segmentation and Business Opportunities

The motor vehicle business in Tanzania can be segmented into five main categories:

Passenger Cars: These vehicles are intended for public transport and private use. The demand for personal vehicles has been growing as more individuals in urban areas seek reliable and convenient transport. In 2023, the importation of personal transport passenger vehicles amounted to $372 million, making this category one of the most lucrative for new entrants.

Personal Transport Cars: This includes vehicles used for personal or family use. The increasing availability of financing options, including car loans and leasing, makes this category attractive to individuals who may not have the upfront capital to purchase outright.

Special Purpose Cars: These vehicles are designed for specific tasks such as ambulances, fire engines, and other service vehicles. Though smaller in volume, the market for special purpose vehicles is steadily growing, particularly with the expansion of industries such as healthcare, emergency services, and construction.

Goods Transport Vehicles: Tanzania’s economy is supported by key industries such as agriculture, mining, and construction, all of which rely heavily on the transportation of goods. In 2023, the country imported goods transport vehicles worth $298 million, indicating a robust demand for trucks, lorries, and delivery vans. Entrepreneurs could explore opportunities in logistics and distribution, where heavy-duty and light-duty trucks are essential for moving products across regions.

Semi-Trailers and Trailers: These are essential for the transportation of bulky goods over long distances. With imports in this category reaching $187 million in 2023, businesses involved in logistics and infrastructure development will find opportunities for growth by investing in trailers and semi-trailers.

Regulatory Framework and Key Business Considerations

For those looking to enter the automobile business in Tanzania, compliance with both the Tanzania Revenue Authority (TRA) and the Business Registrations and Licensing Agency (BRELA) is essential. The ISIC code 4510 applies for BRELA registration purposes for businesses dealing in the sale of motor vehicles. For imports, businesses must adhere to the relevant HS codes, which include:

8702: Public transport passenger vehicles.

8703: Personal transport passenger vehicles.

8704: Goods transport vehicles.

8705: Special purpose motor vehicles.

8716: Trailers and semi-trailers.

The importation process includes paying duties and taxes based on the CIF (Cost, Insurance, and Freight) value of the vehicle. It is crucial to understand the taxation regime, which can vary depending on whether the vehicle is new or used, its engine capacity, and environmental standards.

Key Success Factors and Market Trends

Success in Tanzania’s motor vehicle business hinges on a few key factors:

Price Sensitivity: Tanzanian consumers are generally price-sensitive, particularly in the used car market. Offering competitive pricing or flexible payment terms such as installment plans can attract a wider customer base.

After-Sales Services: Providing reliable after-sales support, including spare parts, servicing, and warranties, can be a significant differentiator in a competitive market.

Partnerships and Distribution Channels: Building strong partnerships with international suppliers, local distributors, and financiers can improve business scalability and enhance your product offering.

Digital Presence: Establishing a robust online presence through a website and social media can help attract a wider audience, especially among younger, tech-savvy buyers. Many buyers start their car search online before visiting physical dealerships.

Future Growth Prospects

Tanzania’s automotive market is expected to continue its upward trajectory, supported by infrastructure developments like the construction of new roads and highways, as well as the government’s focus on expanding the country’s transport sector. The need for goods transport vehicles will likely grow alongside Tanzania’s industrialization plans and regional trade ambitions, especially through initiatives such as the East African Community (EAC) and the African Continental Free Trade Area (AfCFTA).

Investors looking at the motor vehicle business in Tanzania can anticipate strong demand for commercial vehicles, especially as industries like mining, construction, and agriculture expand. Additionally, the increasing interest in environmentally-friendly and fuel-efficient cars provides a niche market that savvy business people can explore.

Overall, the automobile business in Tanzania offers diverse trading business opportunities for those willing to navigate its regulatory landscape and respond to market needs with competitive offerings.

Car Dealer Business Opportunities in Tanzania: Exploring the Growing Market

2. How to Start a Motorcycle Business in Tanzania: 2024 Guide

The motorcycle and tricycle trading business in Tanzania has grown into a vital sector of the transportation industry, particularly as a solution for the country’s last-mile transportation needs. These vehicles—locally known as bodaboda (motorcycles) and bajaji (tricycles)—have become an indispensable part of daily life, especially in areas where access to traditional public transport is limited. This business provides numerous opportunities for prospective entrepreneurs, whether through sales, leasing, or related services such as spare parts, repairs, and maintenance.

Market Dynamics and Opportunities

In 2023, Tanzania imported motorcycles worth $135 million and tricycles worth $8 million, underscoring the high demand for these vehicles across both urban and rural areas. They are widely favored for their affordability, fuel efficiency, and ability to navigate the country’s often congested or rough roads. Their affordability has also made them popular among young entrepreneurs, many of whom have turned to operating bodaboda or bajaji as a source of income, providing transport services for passengers and small goods.

Key motorcycle and tricycle brands that dominate the Tanzanian market include:

Boxer: Known for its durability and fuel efficiency, Boxer motorcycles have become a favorite for bodaboda riders.

Haojue: This brand offers a range of affordable motorcycles suitable for both urban and rural environments.

Kinglion: Favored for its robust design and reliability, Kinglion motorcycles are common in Tanzania’s growing market.

TVS: TVS motorcycles are popular for their versatility and cost-effectiveness.

Fekon: This brand is gaining traction in the market due to its competitive pricing and performance.

Business Segmentation and Growth Areas

The motorcycle business in Tanzania can be divided into several key areas:

Importing and Selling New Motorcycles/Tricycles: With the country’s rising demand for low-cost, reliable transportation, entrepreneurs can capitalize by importing new motorcycles and tricycles from major producers like India, China, and Japan. Brands that offer a balance between affordability and durability tend to perform best in the market.

Used Motorcycles/Tricycles Market: Tanzania also has a thriving market for used motorcycles and tricycles, driven by price-sensitive customers. A business that focuses on importing and selling second-hand units can cater to lower-income buyers or those seeking to minimize initial costs.

Leasing and Financing: With many riders unable to afford upfront costs, leasing or offering motorcycles and tricycles on finance (installment payments) can be a lucrative business model. Entrepreneurs can partner with local financial institutions or create in-house financing schemes to attract more customers.

Spare Parts and Accessories: Given the high usage of motorcycles and tricycles in Tanzania, there is a continuous demand for spare parts, tires, lubricants, and accessories. Businesses focusing on supplying genuine spare parts for popular brands can thrive, particularly if combined with a repair and maintenance service.

Service and Repair: As the motorcycle fleet grows, so does the demand for maintenance services. Entrepreneurs can establish workshops specializing in repairs and maintenance for the most popular brands in the country, ensuring a steady flow of customers.

Regulatory Environment

For anyone looking to start a motorcycle business in Tanzania, understanding the regulatory environment is critical. Businesses dealing with the import and sale of motorcycles and tricycles must comply with registration requirements from the Business Registrations and Licensing Agency (BRELA). The ISIC code 4510 applies for BRELA registration for this line of business.

For imports, the Harmonized System (HS) codes relevant to motorcycles and tricycles are:

8711: Motorcycles (including mopeds) and cycles fitted with an auxiliary motor.

8712: Bicycles and other cycles (including delivery tricycles) not motorized.

Additionally, businesses must adhere to the regulations set by the Tanzania Revenue Authority (TRA) regarding import duties and taxes, which are based on the vehicle’s engine size, age, and environmental compliance.

Key Factors for Success

Several factors will influence the success of a motorcycle or tricycle business in Tanzania:

Pricing Strategy: The Tanzanian market is highly price-sensitive. Offering competitive pricing—especially for entry-level models—can capture a large portion of the market. Discounted or installment-based sales can also appeal to lower-income buyers.

Brand Selection: Focusing on popular and proven brands like Boxer, TVS, and Haojue can boost credibility and customer confidence. Ensuring that customers have access to after-sales support and spare parts for these brands will further solidify market share.

Customer Financing: Many potential customers rely on financing options. Establishing partnerships with microfinance institutions or offering internal financing plans can broaden your customer base.

Service Reliability: Creating a network of service centers or repair shops dedicated to maintaining popular motorcycle and tricycle models ensures long-term customer loyalty. Offering maintenance contracts or warranties can add value to your business.

Geographic Expansion: While urban areas like Dar es Salaam and Arusha represent strong markets, expanding into rural regions where bodaboda and bajaji are often the only reliable forms of transport can provide further growth.

Future Growth Prospects

The future of the motorcycle and tricycle business in Tanzania is promising, driven by several key factors:

Rising Population and Urbanization: As Tanzania’s population grows and more people move to urban areas, the demand for affordable and efficient transportation solutions like motorcycles and tricycles will continue to rise.

Increased Economic Activity in Rural Areas: Many rural regions are seeing more economic activity, thanks to agriculture and government infrastructure projects. This creates a sustained demand for motorcycles and tricycles to serve as key transportation links between farms, markets, and towns.

Employment Generation: The bodaboda and bajaji sectors are key sources of employment for Tanzania’s youth. With limited formal job opportunities, many individuals turn to these vehicles to make a living, ensuring continuous demand for new units.

3. Starting Spear Parts Business in Tanzania

A spear parts trading business involves importation and selling of parts and accessories for motor vehicles and motor cycles. The parts can be body parts, engine parts, tyres, batteries, etc.

In 2023, Tanzania imported motor vehicle parts (HS8708 + HS8714) valued at $89 million, underscoring the importance of the automotive repair and maintenance sector in the country. These imports are essential for supporting the growing number of vehicles on Tanzanian roads, ensuring the availability of replacement parts and accessories for a wide range of motor vehicles. The demand for motor vehicle parts also highlights the increasing reliance on personal and commercial vehicles, which play a vital role in the country’s transportation infrastructure and economic development.

The ISIC code of spear parts and accessories business for BRELA registration purpose is 4530 and the HS codes for import purpose are 4011 for new tyres, 4012 for retreaded tyres, 8507 for car batteries, 8607 for body parts, gear system parts and brake system parts, 8708 for bumpers, belts, windshields, brakes, gear boxes, transmission components, wheels, suspension parts, radiators, clutches, steering wheels, airbags, and other related parts and 8714 for motor cycles parts.

4. Starting Cereals and Grains Business in Tanzania

The opportunities in the cereals trading business are vast covering both domestic and export market. Domestically, you can buy grains from the high producing regions and sell to major commercial cities. Internationally, you can export grains to neighboring. In 2023, Tanzania produced 6.4 million tons of corn/maize, 2.45 million tons of rice, 1 million tons of sorghum, 325 thousand tons of millet and 75 thousand tons of wheat. In the same year, the country exported 130.2 thousand tons of maize, 154.4 thousand tons of rice, 26 thousand tons of sorghum, 8.4 thousand tons of millet, and 1.6 thousand tons of wheat.

Buying maize, rice, wheat, sorghum, millet and selling domestically or exporting | ISIC4620

5. Starting Peas and Beans Business in Tanzania

In 2023, Tanzania exported 427.3 thousand tons of legumes, including peas and beans, generating $274.6 million in revenue. This export activity underscores the country’s strong agricultural sector, particularly in the production of high-demand legumes. These crops not only contribute significantly to Tanzania’s export earnings but also play a crucial role in supporting the livelihoods of farmers across the country. The global demand for nutritious and sustainable food sources has positioned Tanzania as a key player in the international legume market, further boosting the nation’s agricultural exports.

Buying legumes (peas and beans) and selling domestically or exporting | ISIC4620

6. Starting Livestock Trading Business in Tanzania

Data published in 2023 shows that Tanzania boosts a population of 36.6 million cattle, 26.6 million goats, 9.1 million sheep and over 97.9 million chicken. All this presents a great opportunity to trade in livestock both locally and internationally. As of August 2024, price of an average goat, with average dressed carcass weight of 10kg, ranged between Tshs 100,000 – 140,000 and for the bigger ones, with dressed carcass weight of around 16kg, around Tshs 180,000 – 240,000.

Buying live animals, hides, skins, and leather and selling locally or exporting | ISIC4620

7. Starting Flowers and Garden Trees Business in Tanzania

Tanzania is ranked the 3rd largest producer of flowers in Tanzania after Kenya and Ethiopia and the 9th globally. It’s main export destination is Netherlands followed by United Kingdom. You can start a flowers export business by buying from flowers farmers and export to Netherlands or United Kingdom or Kenya. To get high volumes, you can even partner with farmers and establish out-growers programs.

Buying flowers and garden trees and selling to local customers or exporting to foreign markets | ISIC4620

8. Starting a Business of Exporting Unprocessed Tobacco in Tanzania

In 2023, Tanzania produced 122.86 thousand tons of tobacco and the country expects to produce 200 thousand tons in 2024. The country earned $340 million from exporting 80 thousand tons of unprocessed tobacco to Belgium (49%), UAE (10%), South Africa (6%) and other several other countries (35%).

Buying and exporting unprocessed tobacco | ISIC4620, HS2401

9. Processed tobacco business in Tanzania

Buying and selling of processed tobacco products like cigarettes | ISIC4630, ISIC4723.

10. Unprocessed tea export

Buying and exporting unprocessed tea | ISIC4723.

11. Unprocessed coffee export

Buying and exporting unprocessed coffee | ISIC4723.

12. Cashew nuts export business in Tanzania

Buying and exporting cashew nuts or selling to local customers | 4620.

13. Ground nuts export business in Tanzania

Buying unprocessed ground nuts and selling to local customers or exporting (4620).

14. Sunflower export business in Tanzania

Buying unprocessed sunflower seeds and selling to local customers or exporting (4620).

15. Sesame export business in Tanzania

Buying unprocessed sesame seeds and selling to local customers or export markets (4620).

16. Fruits & vegetables export business in Tanzania

Buying unprocessed fruits and vegetables and selling to local customers or export markets (4630, 4721).

17. Diary products business in Tanzania

Buying unprocessed diary products and selling to local customers or export markets (4630, 4721).

18. Poultry products (eggs) business in Tanzania

Buying poultry products like eggs and selling to local customers or exporting (4630, 4721).

19. Edible oils and fats business in Tanzania

Buying locally or importing edible oils and fats and selling to local customers or exporting (4630, 4721).

20. Meat and meat products business in Tanzania

Buying unprocessed meat or processed meat products and selling to hotels, lodges, and other institutions (4630, 4721).

21. Fish & fish products business in Tanzania

Buying unprocessed fish or processed fish products and selling to hotels, lodges, other institutions or exporting to foreign markets (4630, 4721).

22. Chicken meat business in Tanzania

Buying unprocessed chicken or processed chicken products and selling to hotels, lodges, other institutions or exporting to foreign markets (4630, 4721).

23. Beverages

Trading of bottled water, juices, soft drinks, alcoholic drinks, processed coffee, tea, cocoa, and spices (4630, 4722).

24. Pet food

Trading of cat and dog foods by either importing or buying locally and selling to the local market like supermarkets, and grocery stores (4630, 4721).

25. Textiles, clothing and footwear

Importing and trading of yarn, fabrics, linen, haberdashery like needles, sewing thread, clothing, clothing accessories like gloves, ties, and braces, footwear, fur articles, umbrellas, etc (4641, 4751, 4773).

26. Furniture

Importing and selling of residential and office furniture (4649, 4759).

27. Household appliances

Importing and selling of refrigerators, washing machines, microwaves, and the like (4649, 4759).

28. Consumer electronics

Importing or buying locally and selling sound systems, home automation products, radios and TV equipment, CD and DVD players and recorders, stereo equipment, and video game consoles (4649, 4759).

29. Lighting equipment

Importing or buying locally and selling ceiling lights, chandeliers, pendant lights, wall sconces, table lamps, floor lamps, track lighting, recessed lighting, LED bulbs, spotlights, dimmers, light fixtures, outdoor lights, and string lights (4649, 4759).

30. Home decor

Importing or buying locally and selling wall art, paintings, sculptures, vases, candles, picture frames, rugs, curtains, throw pillows, blankets, decorative lamps, mirrors, shelving units, planters, sculptures, clocks, and decorative figurines (4649, 4759).

31. Kitchenware

Importing or buying locally and selling pots, pans, utensils, knives, cutting boards, measuring cups, mixing bowls, baking sheets, cookware sets, kitchen gadgets, graters, peelers, colanders, strainers, can openers, spatulas, tongs, and storage containers (4649).

32. Pharmaceutical goods

Importing or buying locally and selling prescription medications, over-the-counter drugs, vitamins, supplements, vaccines, ointments, creams, syrups, tablets, capsules, powders, injectables, medical devices, diagnostic tests, and first aid supplies.

Imports of pharmaceutical products (HS30) in Tanzania were $439.0 million in 2020, $458.7 million in 2021, $749.9 million in 2022 and $444.4 million in 2023 indicating presence of great business opportunity. The country is pro-domestic manufacturing, though most of the nationals have the high trust on imported products.

ISIC: 4649

33. Cosmetics, perfumeries & soaps

Importing or buying locally and selling makeup products, foundation, lipsticks, eye shadow, mascara, blush, concealers, skincare creams, serums, cleansers, moisturizers, perfumes, colognes, body sprays, shower gels, bar soaps, liquid soaps, and other personal care products.

ISIC: 4649

34. Bicycles and accessories

Importing and selling bicycles and accessories, including bike frames, wheels, tires, handlebars, saddles, pedals, bike pumps, helmets, bike lights, locks, water bottles, bike racks, panniers, repair kits, cycling gloves, and reflective gear(4649).

35. Books and stationery

Importing and selling books and stationery, including notebooks, journals, pens, pencils, markers, erasers, highlighters, planners, calendars, binders, folders, sticky notes, paper clips, staplers, and other office supplies (4649, 4761).

36. Leather goods

This includes wallets, belts, bags, briefcases, luggage, keychains, phone cases, gloves, shoes, jackets, wallets, passport holders, cardholders, and other leather accessories (4649, 4773).

37. Clocks, watches, jewelries, accessories

This includes items like necklaces, bracelets, rings, earrings, brooches, cufflinks, tie clips, anklets, bangles, pendants, charms, hair accessories, scarves, hats, belts, gloves, sunglasses, handbags, wallets, and other fashion accessories (4649).

38. Sports goods

Importing and selling ball sports equipment, rackets and bats, protective gear, fitness and exercise equipment, water sports equipment, winter sports equipment, golf equipment, cycling equipment, fishing equipment, camping and outdoor equipment, track and field equipment, gymnastics equipment, archery equipment, boxing and martial arts equipment (4649, 4771).

39. Music instruments, toys and games

Importing and selling violins, Guitars, Flutes, Saxophones, Trumpets, Drums, Xylophones, Pianos, Keyboards, Organs, Electric guitars, Electric basses, Drum machines, MIDI controllers, Digital pianos, Barbie dolls, Stuffed animals, Baby dolls, Fashion dolls, Toy cars and trucks, Trains and train sets, Remote-controlled cars, Drones, Toy planes and helicopters, Bicycles, Scooters, Skateboards, Balls (e.g., soccer, basketball), Swing sets, Art supplies (e.g., crayons, markers), Craft kits, Model kits, Musical toys (e.g., toy pianos, drums), Playing cards (e.g., Poker, Bridge), Console games (e.g., PlayStation, Xbox), Handheld games (e.g., Nintendo Switch) – 4649, 4772.

39. Music instruments, toys and games

Importing and selling violins, Guitars, Flutes, Saxophones, Trumpets, Drums, Xylophones, Pianos, Keyboards, Organs, Electric guitars, Electric basses, Drum machines, MIDI controllers, Digital pianos, Barbie dolls, Stuffed animals, Baby dolls, Fashion dolls, Toy cars and trucks, Trains and train sets, Remote-controlled cars, Drones, Toy planes and helicopters, Bicycles, Scooters, Skateboards, Balls (e.g., soccer, basketball), Swing sets, Art supplies (e.g., crayons, markers), Craft kits, Model kits, Musical toys (e.g., toy pianos, drums), Playing cards (e.g., Poker, Bridge), Console games (e.g., PlayStation, Xbox), Handheld games (e.g., Nintendo Switch) – 4649, 4772.

40. Computer and peripherals

Importing and selling computers, computer peripherals and software (4651, 4741).

41. Electronics

Importing and selling phones, phone accessories, integrated circuits, printed circuits, semiconductors, microchips (4652, 4741).

42. Agricultural machinery

Importing and selling ploughs, manure spreaders, seeders, harvesters, threshers, milking machines, poultry-keeping machines, bee-keeping machines, and tractors (4653).

In 2023, Tanzania imported tractors (HS8701) worth $419 million.

43. Industrial machineries

Importing and selling CNC machines, Lathes, Milling machines, Drilling machines, Presses, Injection molding machines, Extrusion machines, Grinding machines (4659).

44. Mining and construction machineries

Importing and selling Excavators, Bulldozers, Loaders, Dump trucks, Cranes, Asphalt pavers, Concrete mixers, Rock drills (4659).

45. Textile processing machineries

Importing and selling Spinning machines, Weaving looms, Knitting machines, Dyeing machines, Finishing machines (4659).

46. Food processing machineries

Importing and selling Mixers, Blenders, Industrial ovens, Pasteurizers, Packaging machines, Bottling machines, Meat processing equipment (4659).

47. Chemical processing machineries

Importing and selling Reactors, Distillation columns, Heat exchangers, Pumps, Compressors, Centrifuges, Mixers (4659).

48. Metallurgy machineries

Importing and selling Furnaces, Rolling mills, Forging machines, Casting machines, Welding machines, Heat treatment equipment (4659).

49. Office machineries

Importing and selling Photocopiers, Printers, Fax machines, Shredders, Laminators, Binding machines (4659).

50. Measuring machineries

Importing and selling Calipers, Micrometers, Oscilloscopes, Multimeters, Spectrometers, Pressure gauges, Weighing scales, etc (4659).

51. Robotics and automation machines

Importing and selling Industrial robots, Automated guided vehicles (AGVs), Programmable logic controllers (PLCs), Robotic arms, Pick and place machines, Automated assembly lines (4659).

52. Electrical machineries

Importing and selling Electric motors, Generators, Transformers, Circuit breakers, Switchboards, Electric welders (4659).

53. Mechanical machineries

Importing and selling Internal combustion engines, Steam engines, Turbines, Air compressors, Hydraulic pumps, Gearboxes (4659).

54. Materials handling machineries

Importing and selling Forklifts, Conveyor belts, Pallet jacks, Hoists, Elevators, Escalators (4659).

55. Lubricants

Importing and selling or buying locally and selling grease, oil, coolants (4661).

56. Petrol and diesel

Opening petrol filling station for selling of petrol and diesel (4661).

57. Gas

Trading of LPG gas from the major LPG manufacturers like Oryx (4661, 4730).

58. Metals

Importing and selling iron and steel, exporting gold, exporting Tanzanite, exporting copper, importing and selling bars, rods, sheets, plates (4662).

59. Building materials (hardware)

Importing and buying locally construction materials, hardware, paints, glass, boards, plumbing, and heating equipment and supplies for selling as a wholesale company or retail stores (4663, 4752).

60. Wastes and scraps

Trading or plastic and metal scraps (4669).

61. Non-specialized products

Setting up a multi-products trading company that buys and sells a wide range of products without specialization (4690, 4719, 4799).

62. Groceries

Setting up grocery store for selling various grocery items (4711).

63. Audio and video equipments business

In 2023, Tanzania imported audio and video equipments worth $136.4 million equivalent to over Tshs 340 billion. This indicates presence of a substantial market in this category.

The products you can trade in audio and video equipments business include microphones, loudspeakers, headphones, amplifiers, cameras, film lights, film equipments, subwoofers, home theater systems, etc. This business is widely connected with the business of consumer electronics.

The ISIC code of audio and video equipment business for BRELA registration purpose is 4742 and the HS codes for import purpose are 8518, 8519, 8521, 8523, 8524 and 8525.

64. Floor and wall coverings

Importing and selling of carpets, rugs, wall coverings, other floor coverings (4753).