As Tanzania pushes aggressively to boost domestic resource mobilisation, the 2025/26 national budget emerges as both a beacon of ambition and a mirror reflecting unfinished battles. While the government’s focus on expanding revenue streams and tightening tax incentive management signals progress, it stops short of confronting the systemic bleed caused by illicit financial flows. This silent drain, through trade misinvoicing, tax avoidance, and corruption, remains the overlooked challenge undermining the country’s fiscal foundations.

Government officials, Members of the Parliament, civil society organisations, journalists and development partners gathered in Dodoma on Monday, 12th May 2025, to discuss how Tanzania can curb the ongoing loss of public funds through illicit financial flows (IFFs).

At a breakfast policy dialogue hosted by Policy Forum and WAJIBU – Institute of Public Accountability, former Controller and Auditor General Ludovick Utouh delivered a critique of public financial management and service delivery in Tanzania, based on the findings from the latest audit reports. The event, part of Policy Forum's 2025 Breakfast Debate series, gathered stakeholders from government, civil society, and development partners to reflect on audit outcomes and budget execution trends.

A radio discussion broadcast live by Point FM in Dodoma has brought attention to the challenge of illicit financial flows (IFFs) in Tanzania. The conversation featured three voices from the media and civil society: Ephrahim Bahemu, Business Editor at Mwananchi Communications Ltd; Grace Melleor, a journalist with Star TV (Sahara Communications); and Israel Ilunde, Executive Director of Youth Partnership Countrywide (YPC) and Chairperson of the Policy Forum Board.

OVERVIEW:

WAJIBU and Policy Forum <

At a recent breakfast debate organized by Policy Forum with the support of Thomson Reuters Foundation (TRF), the spotlight was on the devastating impact of illicit financial flows (IFFs) on Tanzania’s economy. According to the 2021 Global Financial Integrity report, Tanzania loses roughly $1.83 billion every year as companies manipulate invoicing practices on exports and imports, a figure that underscores a critical economic challenge.

Illicit Financial Flows (IFFs) represent a significant challenge to Tanzania’s economic stability, depriving the country of substantial revenue that could support critical sectors such as agriculture. This policy brief examines the impact of IFFs on Tanzania’s national budget, focusing on the agriculture sector. It highlights how funds lost through IFFs could bridge the agriculture budget deficit and provides key recommendations to address the issue.

Tax systems are fundamental to the equitable development of any nation, serving a crucial role in resource mobilization and the provision of essential services. However, systemic inequities often prevent these systems from achieving true fairness and inclusivity, particularly in countries like Tanzania. Marginalized groups—including low-income households and women—frequently shoulder a disproportionate tax burden, while the distribution of public revenue remains uneven.

Dar es Salaam, Tanzania

The WAJIBU Institute of Public Accountability and Policy Forum (PF) have officially been introduced in three regions—Dodoma, Lindi, and Katavi by the President’s Office – Regional Administration and Local Government (PORALG) for the implementation of a new governance project titled Empowering Citizenry Agency for Strengthened Public Governance and Sustainable Growth in Tanzania.

Dar es Salaam, Tanzania

The first Breakfast Debate of 2025, organized by Policy Forum, brought attention to significant concerns regarding Tanzania’s tax system, which, according to experts, is facing stagnation in both tax collection and domestic resource mobilization (DRM). These challenges are increasingly seen as barriers to achieving both economic growth and social equity in the country.