Tanzania's import bill has increased significantly, rising by $2.6 billion in seven months. The Bank of Tanzania (BoT) reports that payments for imported goods and services increased from $18.63 billion in the year ending February 2026 to $21.27 billion in the year ending August. This rise is attributed to prolonged disruptions to shipping through the Strait of Hormuz, a strategic waterway, following military strikes on Iran in February and the subsequent closure announced by Tehran in March.
The disruptions to shipping through the Strait of Hormuz have driven up petroleum and freight costs, adding pressure on businesses and consumers. Petroleum imports, which had fallen 16.6 percent year-on-year to $2.11 billion in the year ending February, rose to $3.43 billion in August. The BoT attributed the increase to higher global oil prices amid geopolitical tensions in the Middle East, saying petroleum products accounted for about one-third of the increase in the goods import bill by August.
The cost of transporting merchandise has also increased due to the disruptions. Payments for freight services reached $1.68 billion in the year ending August, up from $1.30 billion in the corresponding period of 2025 — an increase of about $383 million. The impact is being felt by import-dependent businesses, with the Tanzania National Chamber of Commerce (TNCC) receiving complaints from members, particularly those dealing in electronics and construction equipment.
The increase in transport costs has disrupted businesses' working capital and made operations more difficult. TNCC chief executive officer Oscar Kissanga stated that higher freight costs were tying up businesses' working capital and making operations more difficult. Businesses outside Dar es Salaam face additional logistics costs when moving imported goods to regional markets, and the higher costs are eventually reflected in retail prices.
The pressure on freight is coming alongside higher fuel costs, adding to expenses across the domestic supply chain. BoT data show that total payments for services stood at $3.50 billion in the year ending August, compared with $3.35 billion in the year ending February. The disruptions have also affected traders, with Kariakoo Business Community chairman Severin Mushi stating that freight charges had risen sharply, with some traders reporting increases of more than 100 percent.
The increase in freight charges has reduced the volume of merchandise traders can order using the same amount of working capital. For traders operating with fixed capital, higher freight costs mean more money is committed to shipping, leaving less available for purchasing stock. Traders understand that the factors driving international freight rates are largely beyond their control.
The Tanzania National Chamber of Commerce is raising concerns with authorities in search of measures to ease the pressure on businesses and consumers. The chamber is seeking solutions to mitigate the impact of the increased transport costs and freight charges on businesses and the overall economy.
Key points
- Tanzania's import bill has risen by $2.6 billion in seven months.
- Disruptions to shipping through the Strait of Hormuz have driven up petroleum and freight costs.
- The increase in transport costs has disrupted businesses' working capital and made operations more difficult.
