Made in Tanzania Procurement: What the 4 November 2026 Directive Changes for Suppliers
Does the Prime Minister's directive change the law on Made in Tanzania procurement? No. On 4 November 2026 the Prime Minister told public institutions to buy locally made goods first, but the binding rules remain the Public Procurement Act, 2023 and its 2024 Regulations. Those already give goods made in Tanzania a margin of preference of up to 15% and reserve many tenders for local firms. A review of the law is at consultation stage.
Made in Tanzania procurement moved up the government agenda on 4 November 2026. At the launch of two industrial policies in Dodoma, the Prime Minister told ministries and public institutions to buy locally made goods for their buildings and projects. He named glass, steel bars, marble and furniture, and asked for laws with loopholes to be reviewed.
For a factory owner or a supplier who bids for government work, the useful question is what is now binding. This guide separates the political instruction from the law that tender boards must apply today. It covers the Public Procurement Act, 2023, the 2024 Regulations, the Public Procurement Regulatory Authority (PPRA) guidelines and the National e-Procurement System of Tanzania (NeST). It ends with the Zanzibar position, which runs under a different Act.
What changed
The Prime Minister, Dr Mwigulu Nchemba, spoke on behalf of President Samia Suluhu Hassan at the Jakaya Kikwete Hall in Dodoma on Wednesday 4 November 2026. He launched the Sustainable Industrial Development Policy, 2025 and the 2025 edition of the Small and Medium Enterprises Development Policy, 2003. The Prime Minister's Office release of 4 November 2026 carries the headline that the Prime Minister directs public institutions to use local goods.
The Ministry of Industry and Trade's account of the directive and its report of the policy launch record four instructions:
- Public institutions should use locally made goods in construction, furniture and other needs, starting within government itself.
- Laws with loopholes that block local goods, or let institutions avoid the directive, should be reviewed and corrected.
- The Ministry of Industry and Trade should prepare implementation strategies, monitor them and work with sector ministries and the private sector.
- The Ministry should coordinate value chains so that small and medium enterprises can supply raw materials and services to industry.
Press coverage added detail. The Daily News report, republished by allAfrica on 5 November 2026, quotes the Prime Minister naming roofing sheets, cement, marble, transformers, electricity meters and cables. The Daily News launch report quotes him saying the government must lead by example. The Minister for Industry and Trade, Judith Kapinga, said the Ministry has a ten-year implementation strategy with annual targets.
On the same day, The Respondents reported a Ministry of Finance stakeholder meeting in Dar es Salaam on a review of the Public Procurement Act and its Regulations. Its report says the review is testing whether local preference, local goods and joint venture rules work as intended. No bill has been published.
Who is affected
- Tanzanian manufacturers of goods that government buys: building materials, furniture, electrical equipment, uniforms, food and stationery.
- Local traders and distributors who supply government, especially those who currently import finished goods.
- Foreign-owned companies registered in Tanzania, including those with a factory here.
- Foreign tenderers bidding from abroad, and contractors who specify materials in works contracts.
- Small and medium enterprises, women, youth and other special groups registered for set-aside tenders.
- Accounting officers, procurement units and tender boards, who must apply the law and now face a public instruction as well.
The directive was addressed to public institutions. Private buyers, such as mining houses and banks, are not covered by it. Their local content duties come from sector laws, which our guide to local content, NEEC and the sector regulators explains.
Is the directive binding law?
Not by itself. The published sources show a spoken directive at a policy launch, reported in official releases. We found no Government Notice, circular or amended regulation issued under it as at 12 November 2026. A directive guides how public servants use the discretion the law already gives them. It does not amend an Act, and it cannot override a procedure the Act or Regulations fix.
In practice the directive has two effects. First, it puts pressure on procuring entities to use the local preference tools they already have, and to explain when they do not. Second, it starts a law review that may tighten those tools later. Until an amendment is passed and gazetted, a tender board must still evaluate tenders by the published criteria.
| Instrument | Status | Who it binds |
|---|---|---|
| Prime Minister's directive, 4 Nov 2026 | Policy instruction, not gazetted | Public institutions, administratively |
| Sustainable Industrial Development Policy, 2025 | Government policy | Guides ministries; creates no tender rights |
| SME Development Policy, 2003 (2025 edition) | Government policy | Guides ministries; creates no tender rights |
| Public Procurement Act, 2023 (Act No. 10 of 2023) | Act of Parliament, in force 17 June 2024 | Procuring entities and tenderers |
| Public Procurement Regulations, 2024 (GN No. 518 of 2024) | Subsidiary legislation | Procuring entities and tenderers |
| PPRA Preference Scheme Guidelines, 2025 | Guidelines issued by the regulator | Procuring entities, in applying preferences |
What does the Public Procurement Act already require?
Much of what the Prime Minister asked for is already in the Public Procurement Act, 2023, English text published by PPRA. PPRA announced on 12 June 2024 that the Act takes effect on 17 June 2024 and that all procurement must run through NeST. PPRA guidelines now cite it as Cap. 410.
- Section 56, national preference. Procuring entities may give a margin of preference to certain goods manufactured, mined, extracted or produced in Tanzania, and to Tanzanian contractors and consultants.
- Section 57, exclusive preference. Where a Tanzanian public body alone funds a procurement below the threshold in the Regulations, it is reserved for local persons or firms.
- Section 58, consultancy. Foreign consultants must include local firms and experts, with up to 15% of the evaluation weight for local firm participation and up to 10% for national experts.
- Section 60, local goods. The margin for domestically manufactured or produced goods is up to 15%. Entities must prefer domestic goods before sourcing abroad and say so in the tender documents.
- Section 60(4), reporting. Where goods are not sourced locally, the entity reports the reasons to PPRA within five working days of the award.
- Sections 61, 62 and 64. These cover set-asides for local capacity building, joint ventures or subcontracting by foreign tenderers, and set-asides for special groups.
Section 3 defines a local firm as one whose majority share capital is owned by citizens of Tanzania. Section 63 goes further for consultancy inclusion and capacity-building set-asides: there the share capital must be wholly owned by citizens.
The detail sits in the Public Procurement Regulations, 2024, GN No. 518 of 28 June 2024. The English version, published by the Ministry of Finance as GN No. 261 of 2025, carries amendments from GN Nos. 817 of 2024 and 42 of 2025. Regulation 1 states a commencement date of 1 July 2024.
| Preference tool | Figure | Where it is set |
|---|---|---|
| Margin for goods made in Tanzania | Up to 15% in the Act; 15% in PPRA guidelines | Act s.60(1); Regs 43 and 44; Guidelines cl. 9.1 |
| Margin for local firms in works and services | Up to 10% | Reg 38(3); Guidelines cl. 7.3 |
| Margin for local and foreign joint ventures | 8% (foreign input 26% to 49%); 10% (up to 25%) | Guidelines cl. 7.3 |
| Foreign firm subcontracting a local firm | Up to 6% | Reg 40(3); Guidelines cl. 19.1 |
| Exclusive preference (reserved tenders) | Up to TZS 50 billion | Act s.57; Reg 45; Guidelines cl. 8.1 |
| Set-aside for local persons and firms | At least 30% of annual procurement value | Reg 48(1); Guidelines cl. 29.1 |
| Exclusive preference for special groups | 30% of annual procurement | Reg 35(1) |
| Report to PPRA when goods are imported | Within 5 working days of award | Act s.60(4); Guidelines cl. 9.5 |
How does the 15% margin for local goods work?
The PPRA Guidelines for Application of Preference Scheme in Public Procurement, 2025, effective 23 January 2025, set the working rules. Clause 9.1 tells procuring entities to grant a margin of 15% to goods manufactured, mined or produced in Tanzania in international and national competitive tenders.
Clause 9.6 sorts goods tenders into three groups:
- Group A: goods made in Tanzania where local labour, raw materials and components exceed 30% of the ex-works price, from a facility producing them at least since tender submission.
- Group B: goods made in Tanzania with local content of 30% or less.
- Group C: goods imported directly from abroad.
The margin is a comparison device. It is added to the price of the competing offer for ranking only. The winner is paid its own tendered price. Regulation 44 says the margin is applied in the cost comparison of tenders, following the Fourth and Fifth Schedules.
Two gaps need care. Clause 9.7 sends the reader to clause 36.2 for the evaluation method, but clause 36.2 deals with subcontracting margins. The guidelines therefore do not say how a Group B offer is treated. Ask the procuring entity through the clarification window, and read the tender data sheet for the price base used.
Clause 9.4 says PPRA publishes the list of goods made in Tanzania on NeST. If your product is missing from that list, raise it with PPRA before the next tender cycle, not after an award.
Which tenders are reserved for local firms?
Clause 8.1 of the PPRA guidelines reserves works, goods and services with a value not exceeding TZS 50 billion for local persons or firms. Under section 57 of the Act, this applies where a Tanzanian public body alone funds the procurement. The Chanzo reported in September 2023 that the Minister told Parliament the TZS 50 billion ceiling would apply.
A foreign firm can take part in a reserved tender only through a joint venture in which the local firm contributes 75% (clause 8.2 and regulation 45(2)). If no acceptable local offer arrives, the tender may go to a foreign tenderer who subcontracts 5% to 30% of the contract value to a local firm. Above TZS 50 billion, regulation 39(10) requires a foreign tenderer in works or non-consultancy services to joint venture with a local firm.
Clause 10.3 adds regional preference for local suppliers on tenders up to TZS 1 billion for works and TZS 200 million each for goods, non-consultancy services and consultancy services. Regulation 48(1) requires each procuring entity to set aside at least 30% of its annual procurement value for local persons and firms. Special groups registered with PPRA have a separate 30% exclusive preference under regulation 35(1).
What do the new industrial and SME policies say?
Both policies and their implementation strategies are posted on the Ministry of Industry and Trade policies page, dated 4 November 2026. We read the Swahili texts.
We found no statement on public procurement in the Sustainable Industrial Development Policy, 2025. Its statements focus on value addition, domestic and export sales and products meeting market standards. As we read it, the implementation strategy for 2025 to 2035 lists, as one target, a 70% increase by June 2035 in the use of products value-added in Tanzania in large strategic projects.
The SME Development Policy, 2003 (2025 edition) describes the Public Procurement Act, 2023 as giving preference to local entrepreneurs, including small and medium enterprises. It says the government will enact an integrated SME development law.
Policies set direction. They do not give a bidder a right that a tender board must honour. A claim for preference must rest on the Act, the Regulations or the tender document.
Where does this leave foreign-owned suppliers?
Ownership and origin are tested separately. The firm-based margins, the reserved tenders and the set-asides depend on who owns the bidder. The goods margin depends on where the goods are made.
- Foreign-owned company registered in Tanzania. If citizens do not hold a majority of its share capital, it is not a local firm under section 3. It does not get the 10% firm margin and cannot bid alone for reserved tenders.
- Foreign-owned factory in Tanzania. Its goods may still fall in Group A if they meet the 30% local content test, because clause 9.6 groups goods by origin and content. How a reserved tender treats such a factory is not settled in the texts we read. Confirm in writing before bidding.
- Foreign tenderer from abroad. It faces the 15% goods margin on imported goods, a firm margin against local bidders and, in large works, a duty to joint venture or subcontract locally.
Section 3 looks at share capital. Clause 6.1 of the guidelines also excludes arrangements that pass major net profits to non-citizens. A nominee shareholding that hides foreign control will fail that test, and our note on nominee shareholders and beneficial ownership explains the exposure. A genuine partnership needs a written agreement that matches the bid, as our guide to joint venture shareholders' agreements sets out.
Worked example: a transformer tender with a 15% margin
A public utility runs an international competitive tender for distribution transformers. It is part funded by a lender whose financing agreement applies national rules, so section 57 does not reserve it for local firms. Two responsive tenders are received. The figures are illustrative.
| Item | Bidder A, Tanzanian factory | Bidder C, imported |
|---|---|---|
| Group | A: local content above 30% of ex-works price | C: imported directly |
| Evaluated price | TZS 2,300,000,000 | TZS 2,100,000,000 |
| 15% margin added for comparison | Nil | TZS 315,000,000 |
| Comparison price | TZS 2,300,000,000 | TZS 2,415,000,000 |
| Ranking | First | Second |
| Contract price if awarded | TZS 2,300,000,000 | Not awarded |
Bidder A wins although its price is TZS 200 million higher. The utility pays TZS 2.3 billion, not the comparison figure. If Bidder C had offered TZS 1,950,000,000, its comparison price would be TZS 2,242,500,000. That is below Bidder A's price, so Bidder C would win. The break-even rule is simple arithmetic: a Group A bid wins if it is no higher than the Group C price multiplied by 1.15.
Government charges come on top. Bidder A pays the NeST tenderer registration fee of TZS 100,000 a year (register F0174) and a participation fee of TZS 500,000 for an international tender (register F0175). As the winner it also pays the contract implementation monitoring fee for a contract between TZS 1 billion and 5 billion, which is TZS 2,000,000 (register NEW-01-49). These are paid through the Government e-Payment Gateway against a control number.
The margin only helps if the evidence holds. Bidder A should file a local content calculation that ties labour, materials and components to the ex-works price. It should also show the facility is producing, for example through its industrial licence under Cap. 46 and a TBS certification mark where the product needs one.
Zanzibar: a separate procurement law
Public procurement by the Revolutionary Government of Zanzibar runs under Zanzibar law. The Mainland Act does not mention Zanzibar in its application section. The House of Representatives lists the Public Procurement Act, No. 2 of 2025 among its 2025 Acts. It repeals the Public Procurement and Disposal of Public Assets Act, No. 11 of 2016, under which the Zanzibar Public Procurement and Disposal of Public Assets Authority (ZPPDA) operated.
We could not open the enacted text. The Bill gazetted on 5 November 2024 provided, in clause 84, a 15% margin for goods and 10% for works and services. Domestic goods qualified where Zanzibar labour or value addition exceeded 30% of the ex-works price and the facility was in Zanzibar. Clause 86 reserved contracts below Fourth Schedule thresholds for local bidders. The Bill named a new regulator, the Zanzibar Public Procurement Regulatory Authority (ZPPRA).
| Point | Mainland | Zanzibar |
|---|---|---|
| Law | Public Procurement Act, 2023 (Act No. 10 of 2023) | Public Procurement Act, No. 2 of 2025 (Zanzibar) |
| Regulator | PPRA | ZPPRA in the Bill; confirm in the Act |
| Goods margin | Up to 15% (s.60) | 15% in the Bill (clause 84) |
| Local content test | More than 30% of ex-works price (Guidelines cl. 9.6) | More than 30% of ex-works price, facility in Zanzibar (Bill) |
| Who counts as local | Majority citizen-owned firm | Zanzibari bidder as defined in the Act |
| 4 November directive | Addressed to public institutions | No Zanzibar adoption found |
A Mainland factory selling to a Zanzibar ministry should not assume its goods count as local there. The Bill tied the domestic goods test to a facility in Zanzibar. Check the enacted Act and any regulations first, and see our note on the Zanzibar business licence for trading on the islands.
What to do now
- Check your NeST status. Register or renew as a tenderer and, if you manufacture, as a manufacturer under clause 16 of the PPRA guidelines on use of NeST, 2025. Our guide to registering as a government supplier covers the steps.
- Confirm your product is on the local goods list. Look for it in the NeST list under clause 9.4, and write to PPRA if it is missing.
- Build a local content file. Calculate local labour, raw materials and components as a share of the ex-works price for each product line, with supporting invoices.
- Test your ownership. Confirm whether citizens hold a majority of your share capital, or all of it for set-asides that require full citizen ownership.
- Read each tender data sheet. Note whether a preference applies, the price base and any request for proof of origin. Use the clarification window if Group B treatment is unclear.
- Plan partnerships early. Foreign bidders should agree joint venture or subcontract terms before the deadline, with the local share the tender requires.
- Follow the law review. Send comments to the Ministry of Finance through your trade association while the Act and Regulations are under consultation.
Key dates
| Date | Event |
|---|---|
| 17 June 2024 | Public Procurement Act, 2023 in force on the Mainland (PPRA) |
| 28 June 2024 | Public Procurement Regulations, 2024 published as GN No. 518 |
| 1 July 2024 | Commencement date stated in regulation 1 |
| 5 November 2024 | Zanzibar procurement Bill gazetted |
| 23 January 2025 | PPRA Preference Scheme Guidelines take effect |
| 25 April 2025 | English version of the Regulations published as GN No. 261 of 2025 |
| 30 July 2025 | PPRA guidelines on use of NeST take effect |
| 4 November 2026 | Policies launched and directive given; procurement law review reported |
No date has been announced for amendments to the Act or Regulations.
How Zatra helps
Zatra's tender and procurement advisory team checks NeST registration, builds the local content and ownership file, and reviews tender documents for preference clauses. Our wider guide to qualifying before you bid covers eligibility. For licences behind the bid, see our business licensing service. Small firms can start with our startup and SME advisory notes.
There are two cost buckets. Government fees are paid to the authority at the official rate against a control number, with no mark-up. They are separate from Zatra's professional fee, which we quote in writing before work starts. Zatra prepares and files the supplier file. Zatra does not decide or guarantee any authority's outcome. Tender complaints, appeals, disputes and legal opinions go to an advocate. To start, contact Zatra with your NeST number and product list.
Sources and status
Accurate as at 12 November 2026.
- Waziri Mkuu aagiza taasisi za umma zitumie bidhaa za ndani. Prime Minister's Office, 4 November 2026. Accessed 12 Nov 2026.
- Prime Minister directs public institutions to use locally made products. Ministry of Industry and Trade, 4 November 2026. Accessed 12 Nov 2026.
- Prime Minister launches sustainable industrial development and SME policies. Ministry of Industry and Trade, 4 November 2026. Accessed 12 Nov 2026.
- Sera (policies) page, including the 2025 policies and strategies. Ministry of Industry and Trade, posted 4 November 2026. Accessed 12 Nov 2026.
- The Public Procurement Act, 2023 (Act No. 10 of 2023), English text. PPRA, GN No. 813 of 2024. Accessed 12 Nov 2026.
- Kanuni za Ununuzi wa Umma, 2024, GN No. 518. PPRA copy, 28 June 2024. Accessed 12 Nov 2026.
- The Public Procurement Regulations, 2024, English version, GN No. 261 of 2025. Ministry of Finance, 25 April 2025. Accessed 12 Nov 2026.
- Guidelines for Application of Preference Scheme in Public Procurement, 2025. PPRA, effective 23 January 2025. Accessed 12 Nov 2026.
- Guidelines for Use of NeST in Public Procurement and Supply Management, 2025. PPRA, effective 30 July 2025. Accessed 12 Nov 2026.
- New public procurement law to take effect on June 17, 2024. PPRA, 12 June 2024. Accessed 12 Nov 2026.
- Acts of 2025. Zanzibar House of Representatives, 2025. Accessed 12 Nov 2026.
- Public Procurement Bill, 2024 (Zanzibar). Zanzibar Government Gazette, 5 November 2024. Accessed 12 Nov 2026.
- PM orders ministries, institutions to prioritise Made in Tanzania products in procurement. Daily News via allAfrica, 5 November 2026. Accessed 12 Nov 2026.
- PM launches industrial, SME development policies. Daily News, 4 November 2026. Accessed 12 Nov 2026.
- Report on the Ministry of Finance review of the procurement law for local businesses. The Respondents, 4 November 2026. Accessed 12 Nov 2026.
- Tanzania's New Public Procurement Act: Reforms or Business as Usual?. The Chanzo, 12 September 2023. Accessed 12 Nov 2026.
Figures to confirm before you act
- The goods margin set in the Fourth Schedule to the 2024 Regulations, which we could not open. The Act caps it at 15% and the PPRA guidelines apply 15%.
- How a Group B offer (local content of 30% or less) is treated, since clause 9.7 of the guidelines cross-refers to a clause on subcontracting.
- The exclusive preference thresholds in the Fourth and Fifth Schedules, against the TZS 50 billion in clause 8.1.
- Whether a foreign-owned Tanzanian manufacturer may bid alone in a reserved goods tender.
- Any circular, Government Notice or amendment issued after 4 November 2026 to give effect to the directive.
- The enacted text of the Zanzibar Public Procurement Act, No. 2 of 2025, its regulator's name, margins and thresholds.
- NeST fees in registers F0174, F0175 and NEW-01-49, which PPRA can revise.
This article is general information based on official sources available at the date of publication. It is not legal, tax or financial advice. Laws and notices change. Verify with the issuing authority or consult Zatra before acting.
Frequently asked questions
Can a procuring entity now refuse imported goods outright?
Not on the strength of the directive alone. The Act tells entities to prefer local goods and to report imports, but a tender must still be evaluated on its published criteria. A tender that excludes imports needs a basis in the tender document and the law.
Does the 15% margin apply to works contracts that use local materials?
The 15% goods margin applies to goods tenders. In works and non-consultancy services, section 59 asks entities to consider locally produced materials when applying preferences, under PPRA guidelines. Contractors should price local materials and say so in the bid.
Is a TBS mark required to qualify as a local manufacturer?
The preference guidelines we read do not name a TBS mark as proof of origin. Many products need TBS certification to be sold at all, and tender documents often ask for it. Treat it as a practical requirement where the product falls under a compulsory standard.
Can a supplier complain if a tender ignores the local preference?
Yes. The Act provides a complaints and review route for tenderers who believe the rules were not followed. The time limits are short, so check them in the Act as soon as the award notice arrives. Have an advocate review the file and prepare the complaint.
Does a distributor of imported goods count as a local firm?
A majority citizen-owned distributor is a local firm and can use firm-based preferences and reserved tenders. The goods it supplies are still imported goods, so it competes against local manufacturers who hold the 15% goods margin.
Do development partner funded projects follow these preferences?
Section 57 reserves tenders only where a Tanzanian public body alone funds the procurement. Projects funded by lenders or donors may follow the financier's procurement rules under the financing agreement. Check the tender document's source of funds clause.
Does the directive affect special group set-asides for women and youth?
No change was announced. Registered special groups keep the 30% exclusive preference under regulation 35. The SME policy's push to link small firms with industry may increase demand for their supplies through those channels.
Will the 2026 law review change the margins?
No proposals were published as at 12 November 2026. According to The Respondents, the Ministry of Finance review is testing local preference, local goods and joint venture rules. Any change would need an amending Act or new regulations published in the Gazette.
Sources & regulators
Verify before filing: Rates, forms and thresholds move by Finance Act, Government Notice and portal revision. Confirm the live schedule on the mandate-holder portal before you budget or submit. Law-firm alerts and Big Four notes are discovery only.
- Waziri Mkuu aagiza taasisi za umma zitumie bidhaa za ndani: Prime Minister's Office, 4 November 2026. Accessed 2026-11-12.
- Prime Minister directs public institutions to use locally made products: Ministry of Industry and Trade, 4 November 2026. Accessed 2026-11-12.
- Sera (policies): Sustainable Industrial Development Policy 2025 and SME Development Policy 2025 edition: Ministry of Industry and Trade, posted 4 November 2026. Accessed 2026-11-12.
- The Public Procurement Act, 2023 (Act No. 10 of 2023), English text: Public Procurement Regulatory Authority, GN No. 813 of 2024. Accessed 2026-11-12.
- The Public Procurement Regulations, 2024, English version, GN No. 261 of 2025: Ministry of Finance, 25 April 2025. Accessed 2026-11-12.
- Guidelines for Application of Preference Scheme in Public Procurement, 2025: Public Procurement Regulatory Authority, effective 23 January 2025. Accessed 2026-11-12.
- Public Procurement Bill, 2024 (Zanzibar): Zanzibar Government Gazette, 5 November 2024. Accessed 2026-11-12.
- PM orders ministries, institutions to prioritise Made in Tanzania products in procurement: Daily News via allAfrica, 5 November 2026. Accessed 2026-11-12.
- Tanzania reviews procurement law to unlock opportunities for local businesses: The Respondents, 4 November 2026. Accessed 2026-11-12.
- Tanzania's New Public Procurement Act: Reforms or Business as Usual?: The Chanzo, 12 September 2023. Accessed 2026-11-12.
Disclaimer
This article is informational orientation. It is not legal, tax or investment advice and not a government decision. Tanzanian instruments move by Act, Government Notice, Finance Act and portal revision. If a sentence here disagrees with the live mandate-holder, the mandate-holder wins. Zatra Consultants Limited does not issue licences, permits, tax clearances or approvals, and gives no assurance of any regulatory or banking outcome. Professional fees are published only on /pricing/.