Tanzania Prime Minister Instructs Import Controls and Tax Policy Changes to Protect Local Industries

The Prime Minister of Tanzania has instructed ministries, regulators, and enforcement agencies to tighten import controls and halt the granting of tax incentives for imported goods that are already produced domestically, in measures aimed at protecting local industries and investment.

Prime Minister Mwigulu Nchemba issued the instructions on February 12, 2026, during the launch of a steel sheet manufacturing plant owned by Lodhia Group in Mkuranga, in the Pwani Region.

He instructed the Ministry of Finance to ensure that tax exemptions or relief are not provided for imported products that are already available in the domestic market.

He said incentives should only be granted for imports where local production capacity remains insufficient.

He also instructed the Ministry, working with the Tanzania Revenue Authority (TRA) and security agencies, to strengthen enforcement to prevent smuggled goods from entering the country, warning that failure to control illegal imports would undermine domestic investment.

He further instructed the Ministry of Energy to accelerate infrastructure development to increase the use of natural gas in industrial production.

He emphasized that the private sector remains a key stakeholder in national development and a driver of project implementation, noting that more than two million graduates enter the labor market annually and that expanding private sector activity is necessary to create employment opportunities.

For her part, the Minister of Industry and Trade Judith Kapinga said the Government would continue taking deliberate measures to protect domestic manufacturers and create conditions for new industrial investments.

Industrial Policy and Import Substitution in Tanzania

Tanzania has prioritised industrialisation as a central component of its development strategy, with policies aimed at expanding manufacturing capacity, increasing value addition to local resources, and reducing dependence on imports.

Government measures have included fiscal incentives for investors, development of industrial parks and special economic zones, and investment in transport and energy infrastructure to support production.