The Foreign Exchange (Amendment) Regulations, 2026, published as Government Notice No. 206 of 17 July 2026, were made by the Governor of the Bank of Tanzania under section 7(1) of the Foreign Exchange Act (Cap. 271). They amend the principal Foreign Exchange Regulations (G.N. No. 294 of 2022) and revise the definitions of “direct investment” and “securities,” liberalize non-resident access to Tanzanian securities markets, and harmonize export and import proceeds reporting timelines.
Key Amendments at a Glance
Revised definition of “direct investment” now aligned with international standards (IMF/OECD), covering inbound and outbound cross-border investment with a 10% voting-power threshold, and expressly including equity capital, reinvested earnings, and intra-group debt instruments.
New definition of “securities” a comprehensive definition encompassing debentures, stocks, shares, bonds, notes, government loan instruments, collective investment scheme units, derivatives, options, warrants, and futures.
Liberalized non-resident access to securities new regulation 20 expressly permits non-residents to purchase, sell, or transfer securities in Tanzania, subject to the Regulations.
Harmonized reporting timelines for export proceeds the prior “immediately” standard is replaced with a defined “within five days” window for exporters to provide reasons for delays, shortfalls, or excesses. Banks must consider extension requests within five working days.
Harmonized reporting timelines for import proceeds importers must furnish reasons for delays or discrepancies within five days; banks must respond within five working days.
New statutory Forms A–D the Schedule is replaced with prescribed Forms for reporting delays and discrepancies in export and import proceeds, addressed to the Governor, Bank of Tanzania.
Streamlined regulation 19 deletion of sub regulation (3) and the words “and frequency” from subregulation (6), with consequential renumbering.
Impact on Foreign Investors
- Direct investment. Foreign investors acquiring 10% or more of a Tanzanian enterprise’s voting power, or otherwise exercising control or significant influence, are now squarely within the framework, bringing certainty for structuring joint ventures, acquisitions, and intra-group financing.
- Capital markets and securities access. New regulation 20 and the expanded “securities” definition give non-residents an express legal basis to trade equities, government bonds, collective investment scheme units, and derivatives on Tanzanian markets, supporting increased foreign portfolio flows.
- Cross-border trade (export/import proceeds). Foreign-owned exporters and importers must calibrate back-office processes to the tighter five-day reporting windows and use the new statutory Forms A–D for all delay and discrepancy reporting.
Compliance Obligations and Deadlines
The following obligations and timelines apply under the amended Regulations:
90-day realization period. Export proceeds must be realized within 90 days from the date of export (Regulation 7(4)). Import goods must arrive within the prescribed period (Regulation 14(1)).
Exporters – delay reporting (Form A). Within five days from expiry of the 90-day period, provide written reasons for delay and expected realization date.
Exporters – shortfall/excess reporting (Form B). Within 5 days upon receipt of excess or shortfall of export proceeds, provide reasons to the bank or financial institution.
Importers – delay reporting (Form C). Within five days from expiry of the prescribed period, furnish reasons for delay and expected time of realization to the bank through which payment was made.
Importers – shortfall/excess reporting (Form D). Within five days from the date of receipt of goods, provide written reasons for shortfall or excess in the value of goods received.
Banks/financial institutions – extension consideration. Within five working days from receipt of the exporter’s or importer’s information, consider and respond to the reasons for extension of time.
Key Compliance Takeaway
The Foreign Exchange (Amendment) Regulations, 2026 modernize Tanzania’s foreign exchange framework by aligning core definitions with international standards, expressly permitting non-resident securities participation, and introducing defined compliance timelines. Foreign investors and their counsel should act promptly to review structures, update procedures, and ensure full compliance with the new regime.
