Tanzania Currency - Complete Guide to Money in Tanzania
The official currency of Tanzania is the Tanzanian Shilling (TZS), used for payments throughout Tanzania.
The official currency of Tanzania is the Tanzanian Shilling (TZS), used for everyday payments throughout the country. US dollars are also widely accepted in many tourist areas, especially for safaris, hotels, and tourism services.
Understanding Tanzania currency is important when planning a trip, including how to exchange money, use cash and cards, withdraw money from ATMs, and pay for goods and services. This guide covers the essential information travelers need to know about currency in Tanzania.
Whether you are visiting Tanzania or Zanzibar, knowing which currency to use and where to exchange money can make your trip easier. You will also find practical information about exchange rates, banknotes and coins, prices, tipping, and currency restrictions.
What Currency Is Used in Tanzania and Zanzibar?
The official currency used in Tanzania and Zanzibar is the Tanzanian Shilling (TZS). It is the main currency used for everyday payments in both mainland Tanzania and Zanzibar. The Tanzanian Shilling is commonly written as TSh when prices are displayed, while TZS is the international currency code for the currency.
The Tanzanian Shilling is used for everyday expenses such as food, transportation, shopping, local services, entrance fees, and other purchases. Tanzania currency is available in different banknote and coin denominations, making it suitable for both small and larger transactions.
Travelers should carry some Tanzanian Shillings in cash, especially when visiting local markets, small shops, restaurants, or rural areas where card payments may not be available. US dollars are also widely accepted in many tourist areas, particularly for safaris, hotels, lodges, and other tourism services.
What Is the Tanzanian Shilling?
The Tanzanian Shilling (TZS) is the official currency of Tanzania and the main form of money used for everyday transactions across the country. Tanzania currency is commonly written as TSh when showing prices, while TZS is the international currency code for the Tanzanian Shilling.
The Tanzanian Shilling is used for everyday expenses such as food, transportation, shopping, entrance fees, local services, and other purchases. It is available in different banknote and coin denominations, making it suitable for both small and larger transactions.
For travelers, having some Tanzanian Shillings in cash is useful when visiting local markets, small shops, restaurants, and rural areas where cash may be preferred. Cards are accepted at many hotels, lodges, restaurants, and larger businesses, while US dollars are also widely accepted in many tourist areas, especially for safaris and tourism services.
Understanding the Tanzanian Shilling makes it easier to compare prices, manage daily spending, and choose the right payment method while traveling in Tanzania and Zanzibar.
What Banknotes and Coins Are Used in Tanzania?
The Tanzanian Shilling (TZS) is the official currency of Tanzania and is available in both banknotes and coins. These are used for everyday payments throughout the country. Tanzania currency comes in different denominations, with banknotes generally used for larger purchases and coins useful for smaller transactions.
Common Tanzanian Shilling banknotes include TSh 1,000, TSh 2,000, TSh 5,000, and TSh 10,000. Coins are also available in different denominations and are commonly used for smaller payments. Prices in local markets, shops, restaurants, and other businesses are usually displayed in Tanzanian Shillings.
Travelers should keep some smaller notes and coins when possible, as they can be useful at local markets, small shops, restaurants, and for everyday purchases. Hotels, lodges, and larger businesses may also accept cards or US dollars, particularly in tourist areas.
What Is the History of Currency in Tanzania?
The history of currency in Tanzania has changed through several stages, from barter trade and commodity exchange to the modern Tanzanian Shilling (TZS).
- Before colonial rule
Before the introduction of modern currencies, people in the area that is now Tanzania mainly used barter trade. Goods such as cattle, shells and other valuable commodities could be used in exchange for goods and services.
- German colonial period — 1880s to 1919
During German rule in Tanganyika, the main currency was the German East African Rupee, while the Heller was used as a smaller denomination. Zanzibar had a different monetary system and used currencies including the Indian Silver Rupee.
In 1905, the Deutsch-Ostafrikanische Bank opened in Dar es Salaam, marking an important development in formal banking and currency management.
- East African Currency Board — 1919 to 1966
After World War I, Tanganyika came under British administration. The East African Currency Board (EACB) was established in 1919 to manage currency in Tanganyika, Kenya and Uganda. Zanzibar joined the system in 1936.
The East African Shilling became the main currency. Its value was maintained in relation to the British pound sterling, with sterling reserves supporting the currency.
- Establishment of the Bank of Tanzania — 1966
Tanzania’s Parliament passed the Bank of Tanzania Act No. 12 of 1965. The Bank of Tanzania began operations on 14 June 1966. This marked an important step toward Tanzania having control over its own monetary system.
In 1966, the Bank of Tanzania issued the first Tanzanian Shilling banknotes and coins. The first coins included denominations such as 5 cents, 20 cents, 50 cents and 1 shilling.
- Development of the Tanzanian Shilling
Since 1966, the Bank of Tanzania has introduced several generations of banknotes and coins. New designs and denominations have been introduced for reasons including inflation, improved security features, national identity and technological development.
- Currency today
Today, Tanzania’s official currency is the Tanzanian Shilling, with the international code TZS and the common abbreviation TSh. One shilling is divided into 100 cents. The Bank of Tanzania has the legal authority to issue Tanzania’s banknotes and coins.
Summary timeline
Barter and commodities → German East African Rupee → East African Shilling → Tanzanian Shilling (1966–present)
The introduction of the Tanzanian Shilling in 1966 marked the beginning of Tanzania’s independent national currency system under the Bank of Tanzania.
What can you pay with in Tanzania
In Tanzania, cash is widely accepted for everyday transactions, especially in local shops, markets, restaurants, public transportation, and other small businesses. The official currency is the Tanzanian Shilling (TSh or TZS).
Non-cash payment methods are also widely used, particularly in the tourism industry, hotels, supermarkets, restaurants, petrol stations, and many other businesses. These methods include mobile money services such as M-Pesa, Airtel Money, Mix by Yas, and HaloPesa, as well as debit and credit cards such as Visa and Mastercard.
In tourist areas, some businesses may also accept foreign currencies, especially US dollars. However, the Tanzanian Shilling remains the official currency and is commonly used for local transactions.
Therefore, visitors to Tanzania can generally pay using cash, mobile money, bank cards, and, in some tourist businesses, foreign currency.
Paying with Cash in Tanzania
Cash remains an important way of paying for goods and services in Tanzania. The official currency is the Tanzanian Shilling (TZS or TSh). Since March 2025, Tanzania has strengthened rules requiring local cash transactions to be conducted in Tanzanian shillings, with specific exceptions for certain tourism transactions.
For foreign visitors and tourists, this means that US dollars, euros, British pounds, and other foreign currencies should generally be exchanged into Tanzanian shillings before making everyday cash purchases. Currency exchange can be done through banks and licensed foreign-exchange bureaus.
For example, if a tourist wants to buy food at a local restaurant for TSh 20,000, the payment should normally be made in Tanzanian shillings rather than US dollars. The same applies to many everyday services, including:
- Restaurants and cafés
- Local shops and markets
- Taxis and other local transport
- Small businesses
- Local services
- Everyday purchases
There is an important exception for the tourism sector. Tour operators dealing with international visitors may issue invoices and receive payments in foreign currencies under the applicable rules. This means that a tourist booking a safari or another qualifying tourism service may be able to pay in US dollars or another foreign currency.
It is therefore useful for visitors to Tanzania to carry some Tanzanian shillings in cash, particularly when traveling outside major hotels and tourist establishments. Even where electronic payments are available, having local currency can be helpful because some small businesses may not accept bank cards or mobile payments.
Paying by Card
Paying by card is a convenient way to make purchases in Tanzania, especially for tourists and international visitors. Visa and Mastercard are commonly accepted in hotels, restaurants, supermarkets, shopping centers, tour companies, and other businesses that serve tourists.
However, card payments are not accepted everywhere. Small shops, local markets, street vendors, some taxis, and businesses in rural or remote areas may accept only cash or mobile money.
When using a card, you should also consider additional charges. Your bank may charge a foreign-transaction or currency-conversion fee if your card is linked to a foreign currency account. The merchant or payment provider may also apply a card-processing fee.
For example, if you have a euro account and pay TSh 100000Â in Tanzania, your bank will convert the Tanzanian shilling amount into euros. The final amount deducted from your account may therefore depend on the exchange rate and any applicable bank fees.
For this reason, travelers are advised to:
- Carry a Visa or Mastercard for larger payments.
- Check the exchange rate and possible fees before paying.
- Ask the business whether there is a card surcharge.
- Keep some Tanzanian shillings (TSh) available for places that do not accept cards.
Overall, card payments are widely useful in tourist areas, but cash and mobile money remain important alternatives in Tanzania
What's the Best Way to Pay in Tanzania
The best way to pay in Tanzania depends on where you are, what you are buying, and the type of service you are using. For most visitors, it is advisable to use a combination of cash, bank cards, and mobile money.
- Cash (Tanzanian Shillings)
Cash is very useful for everyday purchases, especially in local markets, small shops, restaurants, street food stalls, and public transport. It is also helpful when visiting rural areas where electronic payment facilities may be limited.
- Bank Cards (Visa and Mastercard)
Bank cards are convenient for larger payments, such as hotel accommodation, safari bookings, restaurants, supermarkets, and other tourist services. However, visitors should check whether additional transaction or currency-conversion fees apply.
- Mobile Money
Mobile money services such as M-Pesa, Airtel Money, Mixx by Yas, and HaloPesa are widely used in Tanzania. They allow people to pay bills, purchase goods, transfer money, and make payments using mobile phones. Some services may require a locally registered SIM card.
- Foreign Currency
US dollars and other foreign currencies may be accepted for certain permitted tourism transactions, such as qualifying tour operator services. However, Tanzanian shillings are the main currency for everyday local cash payments.
Recommendations for Tourists
Situation | Recommended payment |
Local markets | Cash (TSh) |
Small shops | Cash or mobile money |
Hotels | Bank card or cash |
Restaurants | Cash or bank card |
Safari bookings | Bank card or permitted foreign-currency payment |
Public transport | Cash or supported mobile payment |
Supermarkets | Cash or bank card |
Rural areas | Cash (TSh) |
Conclusion
For international visitors, carrying some Tanzanian shillings in cash while also having a Visa or Mastercard is a practical approach. Cash is useful for everyday expenses, while bank cards provide convenience for larger purchases and tourist services. Mobile money is another useful payment option, particularly for people who stay in Tanzania for longer periods.
The most important advice is to avoid relying on only one payment method. Having cash and a bank card provides flexibility when travelling around Tanzania.
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