Do you want to start a business in Tanzania? If yes, you are in the right place. Tanzania offers a wide variety of entrepreneurial opportunities across various sectors. It ranges from agriculture and tourism to technology and manufacturing. Here in this article, we have listed the most profitable best and new business ideas in Tanzania for locals and foreigners.
The economy of Tanzania is growing as well as expanding. This is an advantage for you to start your business in Tanzania. There are various businesses that you can start here in this country. Some of them are discussed here.
30 Small Business Ideas in Tanzania
1. Teaching and Training
Tanzania has a great demand for good teachers. Hence you can start teaching students of different classes and levels which will fetch you a good profit. Training in job-centered courses also has good demand. So start your teaching or training center and earn good money. You can teach from home, in a classroom or rented center, or online. Good networking with the students as well as parents is very important to grow your business.
2. Start an Online Business from Home
If you are looking to earn money online from home, there are several opportunities you can explore, thanks to the Internet revolution. Some of the online business ideas that require minimal upfront investment are listed below:
- Start a Blog
- Affiliate Marketing
- Dropshipping
- Freelance Work
Read: Best Online Jobs from Home
3. Crop Farming
Crop farming has a good prospect in Tanzania. THis is due to no scarcity of fertile lands, a good climate, and cheap labor in the country. You can start your business of crop farming on a large plot of land using modern machinery. Both food crops, as well as cash crops, grow well in Tanzania. Food crops include Maize, Cassava, Sweet Potatoes, and Sugarcane, while cash crops are coffee, tea, tobacco, etc. You can choose any of them. The farming business will fetch you a good profit.
4. Open a Poultry Business in Tanzania
The poultry business is very profitable in Tanzania. You can choose a plot and start your poultry breeding chicken, which has a very good demand. Supervision of the poultry is very important and it is best to do it yourself. Also, keep good contact with a vet for any health-related problems of the chicks. Coordination with the market is also necessary for the sale of your products.
5. Food Processing
Tanzania grows a variety of crops like maize, sweet potatoes, bananas, coffee, tea, etc. However, very few know the processing and preservation methods of crops. Hence food processing business will be a profitable venture for you. You can start a food processing unit located close to the farms and earn good money by selling the processed crops.
6. Mobile Car Wash
A mobile car washing service is a good business idea for you in Tanzania. Apart from the cleaning essentials, you need a van to reach your customer’s place to provide a car washing service. If you can add a repair service along with a car wash, you can earn more money.
7. Solar Panel
Solar power is in much demand in Tanzania as it is blessed with bright sunshine around the year. Hence you can start a solar panel manufacturing business. Adding the services of installation and repair of solar panels will give you more profit.
8. Co-working space
You can start a business of co-working space in the big cities of Tanzania as many medium and small entrepreneurs are unable to or do not have an office. You can offer sitting arrangements, computers, printers, scanners, and internet facilities along with a conference room in your co-working space based on rent. Renting the space to multiple clients will get you a good income.
9. App Development
Different kinds of apps are much sought after in Tanzania. You can avail of this opportunity and start your business app development company. Try making apps for different service companies wherein the app will make their companies easier to reach customers. On the other hand, customers will also find it convenient to use the apps for their benefit.
10. Computer and Smartphone Repair
The use of computers and smartphones has increased to a great extent in Tanzania. Therefore there is a demand for repair of these. If you are skilled in computer and smartphone repair, you can start your cell phone repair service business. You can do it from your home and after your business scales up rent shop space. A good personal network both at the official as well as local level will fetch you a good income from this business.
11. Food Truck
The food truck business has a good market in Tanzania. You need a truck with cooking arrangements and your culinary skills for this business. Serve fresh and tasty food, mainly different fast food from your truck. Take the truck to different crowded places throughout the day for maximum sales. Focus on the lunch hours when the sale is maximum.
12. Haulage
The haulage of petroleum products throughout the country is a lucrative business in Tanzania. The demand for petroleum products is rising and roadways are the main system of communication. Therefore you can start the haulage of petroleum products like diesel or kerosene from the ports to the farms. You need to invest in oil tankers and dependable drivers for this business. Along with that, you need the necessary licenses and permits.
13. Warehouse
The rapid growth of the economy along with industrialization has created a need for warehouses. You can start your warehouse and distribution company under which you will be responsible for receiving as well as distributing the products of different companies. This is a profit-making business provided you do the research well. You will need a certain license and permits to start your warehouse business.
14. Start a Salon Business in Tanzania
The salon is a profitable business idea, especially in the urban areas of Tanzania. Professional services, the use of top-class beauty products, and a cool décor will fetch you many clients. You can also sell beauty products from your salon.
15. Handicraft Shop
Handicraft items are much in demand. You can start your handicraft store where you can buy the items from rural artisans and sell them through your store earning a high profit. Choose a good location for your shop to attract more customers.
16. Fashion Design
Fashion design has a good demand in Tanzania, especially wedding dresses. You can start your fashion designing brand and sell your creations through your boutique or online store. Good networking and marketing are essential for the growth of this business.
17. Car and Scooter Rental
Car and scooter rentals are quite profitable business ideas in Tanzania. You can start this business in urban areas where there is a good demand for these services. Start with a few cars and scooters and rent them on a daily or hourly basis. With the growth of your business, invest in more cars and scooters. Stress on having regular and captive clients.
18. LPG Distribution
LPG or cooking gas distribution is a good business idea for you. It has good demand. You can start your distribution business in a place where there are fewer competitors. You need the required license and permits for this business. It is a very profitable business.
19. Business Consultant
In a growing economy like Tanzania, there is a good demand for business consultancy. You can start your consultancy firm and provide consultancy on financial services, accounting services, business planning and strategies, business viability, profit projection, and preparation of bankable project reports. You have to be an expert in finance and banking to be a successful business consultant.
20. Manpower/Employment Agency
Medium and small industries need manpower regularly and often the laborers quit their job and the employer faces great difficulty. You can fulfill this requirement by starting your business as a manpower agency. Your agency will have its team of manpower with various skills and specializations and you will provide them with the contact of the employer and settle their fees with the employer. Your income will be commissions received from both ends.
21. Open a Bakery
The bakery business is very profitable in Tanzania like most other countries. Start your bakery shop serving regular bakery items along with snacks and fast food. Find a good location for your shop and serve good and fresh food. Supplying against special orders and selling online will give you more profit.
22. Start a Restaurant Business in Tanzania
Opening a restaurant is a profitable venture. Choose a location near the office areas or at prominent marketplaces. Serving good local or international food with prompt service and takeaway facilities will fetch you a good profit.
23. Meal Delivery
Many people prefer home-cooked food at the workplace or home. If you have an acumen for cooking, you can start the business of meal delivery at the workplace or home. The food should be well-cooked and as per order and the delivery has to be prompt and punctual. Advertise your service online and offline and depend on referral clients also.
24. Child Care
The busy parents of Tanzania need a good childcare service for their kids. You can start a child care business either personally as a nanny or with a team setting a child care center for many children. The setup of a childcare center must be clean, hygienic, and comfortable for the children. Hire caring and responsible staff for your child care center as taking good care of the child demands care as well as responsibility.
25. Digital Marketing
With the gradual growth of the economy, there has been a good demand for digital marketing in Tanzania. If you are an expert in digital marketing and its tools like SEO or social media, you can start your digital marketing business. You will have different categories of clients to serve.
As a digital marketing consultant, you have to chalk out the marketing program, assist in making the website, write SEO content and make an impressive marketing strategy for social media and online advertising. You need your company’s website and good networking for this business.
26. Event Management
Event management is a lucrative business. You can start your event management company and work as an event manager taking all the responsibilities of organizing corporate events or social events like Marriage, birthdays, and other parties. You need good contacts, efficient staff, and immaculate service to become a successful event manager. The website of your company is also essential.
27. E-commerce Platforms
With the increasing adoption of smartphones and internet connectivity, there is a growing demand for online shopping platforms. Entrepreneurs can create e-commerce websites to facilitate online retail transactions.
28. Fintech Solutions
Tanzania’s growing financial sector presents opportunities for entrepreneurs to develop fintech solutions such as mobile payment platforms, digital wallets, and peer-to-peer lending platforms to enhance financial inclusion and accessibility.
29. Software Development and IT Services
Offering software development services, IT consulting, and tech support can be a lucrative business venture. Entrepreneurs can cater to both local businesses and international clients seeking technology solutions.
30. Telemedicine and HealthTech
Leveraging technology to provide remote healthcare consultations, telemedicine services, and health monitoring solutions can help bridge the gap in access to healthcare, particularly in rural areas.
How to Start a Business in Tanzania
Conduct Market Research
Market research is a crucial first step in starting any business. It helps you understand the demand for your product or service, identify your target audience, and analyze your competition. In Tanzania, conducting market research involves:
- Identifying the specific industry you want to enter.
- Understanding local consumer preferences and purchasing behavior.
- Analyzing the strengths and weaknesses of your competitors.
- Identifying potential gaps in the market that your business can fill.
Choose a Business Idea
Once you have a clear understanding of the market, it’s time to choose a business idea. Consider your skills, interests, and the findings from your market research. Some popular business ideas in Tanzania include:
- Agriculture and agribusiness (crop farming, livestock rearing, agro-processing)
- Tourism and hospitality (tour operations, hotels, cultural experiences)
- Renewable energy (solar energy solutions, biogas production, hydropower projects)
- Technology and innovation (e-commerce platforms, fintech solutions, software development)
- Healthcare and wellness (telemedicine, pharmaceutical manufacturing, wellness centers)
- Manufacturing and industrial production (food processing, textile and apparel manufacturing, construction materials production)
Develop a Business Plan
A well-structured business plan is essential for outlining your business goals, strategies, and financial projections. It serves as a roadmap for your business and can be used to attract investors or secure financing. Your business plan should include:
- Executive summary
- Business description
- Market analysis
- Organizational structure
- Product or service offering
- Marketing and sales strategy
- Financial projections
- Funding requirements
Choose a Business Structure
In Tanzania, you can choose from several business structures, each with its legal and tax implications. Common business structures include:
- Sole proprietorship: A single individual owns and operates the business.
- Partnership: Two or more individuals share ownership and responsibility for the business.
- Limited liability company (LLC): A separate legal entity that protects owners’ personal assets from business liabilities.
- Corporation: A more complex structure suitable for larger businesses, offering limited liability and the ability to raise capital through shares.
Register Your Business
To legally operate your business in Tanzania, you must register it with the relevant authorities. The registration process involves:
- Reserving a business name with the Business Registration and Licensing Agency (BRELA).
- Preparing and submitting the necessary documents, including the Memorandum and Articles of Association for LLCs and corporations.
- Paying the required registration fees.
- Obtaining a certificate of incorporation for LLCs and corporations.
Obtain Necessary Licenses and Permits
Depending on your business type, you may need specific licenses and permits to operate legally in Tanzania. Common licenses and permits include:
- Business license: Issued by local government authorities based on your business location and industry.
- Taxpayer Identification Number (TIN): Issued by the Tanzania Revenue Authority (TRA) for tax purposes.
- Sector-specific licenses: Required for businesses in regulated industries such as healthcare, tourism, and mining.
Open a Business Bank Account
Separating your personal and business finances is crucial for managing your business effectively. Open a business bank account with a reputable bank in Tanzania to facilitate transactions and maintain accurate financial records.
Register for Taxes
All businesses in Tanzania must register for taxes with the TRA. The main taxes applicable to businesses include:
- Corporate income tax: Applied to the profits of companies and partnerships.
- Value Added Tax (VAT): Applied to the sale of goods and services.
- Pay-As-You-Earn (PAYE): Applied to employee salaries and wages.
Ensure you understand your tax obligations and comply with all tax regulations to avoid penalties.
Set Up Your Business Location
Choose a suitable location for your business based on your target market and industry. Consider factors such as accessibility, infrastructure, and proximity to suppliers and customers. Secure a lease or purchase property for your business operations.
Promote Your Business
Effective marketing and promotion are essential for attracting customers and growing your business. Develop a marketing strategy that includes:
- Creating a brand identity and logo.
- Building a professional website and social media presence.
- Implementing digital marketing tactics such as search engine optimization (SEO), content marketing, and social media advertising.
- Networking with other businesses and industry associations.
Frequently Asked Questions
Is Tanzania a Good Place to Start a Business?
There are many kinds of businesses that you can start in Tanzania. The Government of Tanzania promotes many business ideas for the development of the economy.
Tanzania has a rich reserve of minerals including gold, iron ore, copper, silver, and diamonds. Hence there are business opportunities for you in Tanzania in such sectors.
The transport network in Tanzania mainly depends on road transport. That is why you can set up your business related to transport or logistics.
How can I make my business profitable in Tanzania?
Tanzania is a developing country according to some indexes. However, the economy is growing and the government is assisting new entrepreneurs to set up their businesses here and earn good profits.
Can a foreigner open a company in Tanzania?
Yes, foreigners are encouraged by the local government to invest in Tanzania. Entrepreneurs from outside the country can register a new limited liability company (local company). Otherwise, one can also establish a foreign company in Tanzania.
What are the best cities in Tanzania to start a business?
Here are the top cities in Tanzania to start a new business:
- Arusha
- Dar Es Salam
- Mwanza
- Mbeya
- Zanzibar City
What is the Development Vision of Nigeria for 2025?
It is the development and investment plan of the Government to uplift the economy of Tanzania by 2025. The East African country of Tanzania is rising fast. Hence it is a good place to start your business here and be a part of the economic growth.
Editorial Team at 99BusinessIdeas is a team of experts led by Rupak Chakrabarty with over 25 years of experience in starting and running small businesses. Started in 2010, 99BusinessIdeas is now one of the largest free small business resources in the industry.