Samia’s first year delivers business reform gains

DAR ES SALAAM: AS President Dr Samia Suluhu Hassan marks one year since she was sworn in for the second term in office on November 3, last year, Tanzania’s business landscape tells a story of deliberate reform, digital innovation and inclusive economic empowerment.

From a unified tax system that speaks to over 300 institutional platforms to a landmark tax holiday for new entrepreneurs, the administration has moved with purpose to make the country an easier place to do business.

When President Dr Samia took the oath of office for her current term, she carried with her a clear mandate of empowering citizens to increase their incomes and to create an enabling environment where enterprise from the smallest roadside stall to the largest foreign investment could flourish.

One year later, that mandate has translated into concrete, measurable action across trade facilitation, business registration, taxpayer services and direct support for entrepreneurs and investors.

The results are not abstract. They are embedded in the daily lives of Tanzanians who now register a company in hours rather than weeks, who receive tax assessments generated from integrated data rather than arbitrary estimates, and who can access credit through schemes designed specifically for the youth and women who form the backbone of the informal economy.

A Unified Tax System that works for everyone

Perhaps the most consequential reform of the year is the Integrated Domestic Revenue Administration System (IDRAS), launched in February 2026 by the Tanzania Revenue Authority (TRA). The system represents a fundamental shift in how government interacts with taxpayers, moving from a fragmented, institution-by-institution approach to a single, interoperable platform that integrates more than 300 systems across government institutions.

TRA Commissioner General, Mr Yusuph Juma Mwenda explained that IDRAS is designed to simplify revenue collection, save taxpayers’ time, and expand the tax base by capturing accurate information on all taxpayers. Crucially, it also protects honest businesses from unfair assessments.

“Through IDRAS, we will enable more businesses by ensuring taxpayers receive assessments based on the information available in the system, avoiding inaccurate claims that have been brought by some dishonest taxpayers,” he said.

The system delivers a comprehensive suite of services including taxpayer registration, return submission, tax assessment and payment, objections and appeals, debt management, exemptions and refunds, and validation of electronic receipts, tax clearance certificates, and driver’s licences.

It also allows traders to issue electronic fiscal device (EFD) receipts even where they lack physical EFD machines, a boon for small businesses in remote areas.

A tax holiday that rewards formalisation

In a move that directly addresses one of the biggest barriers to business formalisation, the government announced a one-year income tax exemption for new small traders, effective July 1, 2026. The exemption applies for twelve months from the date a trader obtains a Taxpayer Identification Number (TIN), a departure from the previous system, which taxed businesses from the moment they registered.

Presenting the proposal to Parliament in Dodoma on June 11, 2026, Finance Minister, Ambassador Khamis Mussa Omar framed the measure as part of broader efforts to create an enabling environment that attracts formalisation of the informal sector, which employs the majority of Tanzania’s youth and women.

The proposal built on recommendations from the Presidential Commission on Tax System Reform, which had argued that new traders should not be taxed in their first year. Alongside the tax holiday, the government amended the Local Government Finance Act, Chapter 290, to require local authorities to allocate 15 per cent of domestic revenue up from 10 per cent to loans for youth, women, and people with disabilities.

Of this, 10 per cent continues to be directed to these groups, while 5 per cent supports investment in projects, construction, and improvements to markets and business areas. “The measures are intended to address some of the financial and regulatory difficulties that discourage small businesses from formalising their operations,” he said.

Business Registration: From weeks to hours

The Business Registrations and Licensing Agency (BRELA), has undergone a quiet revolution. In May 2026, BRELA unveiled the upgraded BRELA Online Service (BOS), a platform that simplifies company registration, information submission and activity monitoring.

Under the new system, applicants enter details of directors, shareholders, and company secretaries only once, eliminating the duplication that plagued the previous system. Joint shareholders can submit their information directly and receive official recognition from the Registrar.

Directors, shareholders, and secretaries can monitor company activities in real time, with automatic notifications sent to all linked individuals when an application is submitted.

The platform has also integrated the registration of charges and debentures, allowing online submission instead of the previous paper-based process. A name clearance feature lets users verify proposed company names before beginning registration, reducing delays caused by rejected names.

All new applications for company registration, annual returns, information updates, and closures are now handled through BOS. The results speak for themselves. In the first 100 days of the administration, BRELA registered 5,045 companies, including 3,120 owned by youth.

It registered 8,792 business names with 4,938 belonging to young entrepreneurs along with 1,018 trademarks owned by youth, 149 industrial licences (half to young investors), and 5,430 Category A business licences, with 50 per cent allocated to youth.

BRELA Chief Executive Officer, Mr Godfrey Nyaisa attributed these achievements to continuous reforms in policies and laws, as well as the strengthening of digital systems.

TISEZA: Africa’s best investment promotion agency

On the international stage, Tanzania’s investment promotion efforts have earned global recognition. The Tanzania Investment and Special Economic Zones Authority (TISEZA) was named Africa’s Best Investment Promotion Agency for 2026 at the AIM Global Foundation Awards in Dubai in September, the third consecutive year the authority has received international recognition.

The award reflects a remarkable transformation. Registered investment projects have more than tripled over the past five years, rising from 252 in 2021 to 915 in 2025. Approved investment capital nearly tripled over the same period, from 3.7 billion US dollars to 10.95 billion US dollars.

In 2025, TISEZA received a top award for its use of ICT through its One-Stop Facilitation Centre, which integrates digital systems to provide investors with efficient, seamless services. TISEZA Board Member, Ms Felista Lelo described the award as a great honour for the nation and TISEZA.

“This demonstrates the confidence the world has in Tanzania,” she said Empowering startups and young entrepreneurs The administration has also moved decisively to support startups businesses with high growth potential that often struggle to access conventional financing.

Recently, Vice-President, Mr Deogratius Ndejembi directed the Ministry of Industry and Trade to develop a comprehensive startup policy within six months, distinguishing startups from small and medium enterprises and addressing their unique challenges.

“The government considers startups an important and rapidly growing area, and we have a responsibility to stay ahead of the times by creating a favourable environment for them to grow and employ more people,” Mr Ndejembi said at Startups Week 2026 in Dar es Salaam.

He identified access to capital as a major challenge, noting that financial institutions often consider startups risky because they lack established business records and collateral. Moreover, Finance Minister, Ambassador Khamis Mussa Omar announced plans to establish a venture capital fund operating as a “fund of funds” investing through professional fund managers rather than directly in individual startups.

He said private investors are expected to contribute 20 to 30 per cent of the fund, with the government mobilising additional capital to expand its reach.

The 2026 Finance Act introduced additional measures to support startups including a oneyear tax holiday for qualifying new startups under the presumptive tax regime, an increase in the presumptive taxation threshold from 100m/- to 200m/-, and a reduction in the retained earnings taxation threshold from 30 to 15 per cent of profits.

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Credit access and industrial development

Through the Ministry of Industry and Trade, the Small Industries Development Organisation (SIDO), and the National Entrepreneurship Development Fund (NEDF), the government has extended credit to small businesses across 19 regions.

According to the minister for Trade and Industry, In the first 100 days of the administration, 193 loans worth 821.7m/- were issued, generating 546 jobs— 436 of them for youth—in manufacturing, livestock, agriculture, trade and services.

The ministry has also designed a Special Investment Programme for Youth in collaboration with TISEZA and SIDO, targeting 100,000 youth-led businesses through inclusive financing, industrial infrastructure, and export facilitation.

“Special industrial zones for youth are planned in Kigamboni (Dar es Salaam), Nyakato (Mwanza), Azimio (Arusha), Songwe (Mbeya), Uvinza (Kigoma), and Nyasa (Ruvuma),” she said.

A Special Industrial Development Plan aims to add 9,048 industries and create more than 6.5 million jobs over six years. What emerges from this first year is a coherent philosophy: that trade facilitation, business registration, taxpayer services and entrepreneur support are not separate programmes but interconnected pillars of a single vision.

Through the CCM 2025– 2030 election manifesto President Samia pledged to empower citizens to increase their incomes, including by establishing a special fund to facilitate access to capital for small and medium enterprises and startups.

One year in, that pledge is being honoured not through rhetoric, but through systems that work, policies that reward formalisation, and institutions that have earned international recognition.