When planning a trip to Tanzania, understanding the local currency is crucial for a smooth and stress-free experience. Whether you’re exploring the vibrant markets of Dar es Salaam, going on a safari in the Serengeti, or relaxing on the beaches of Zanzibar, being informed about Tanzania’s currency will help you manage your finances effectively. This comprehensive guide covers everything you need to know about Tanzania’s currency, including its history, denominations, exchange rates, and tips for handling money during your trip.
The Tanzanian Shilling: An Overview
The official currency of Tanzania is the Tanzanian Shilling, abbreviated as TZS or simply Shs. The symbol for the Tanzanian Shilling is TSh, and it is used throughout the country for all transactions. The currency is issued and regulated by the Bank of Tanzania, the country’s central bank.
A Brief History of the Tanzanian Shilling
The Tanzanian Shilling was introduced in 1966, replacing the East African Shilling, which was previously used in Tanzania, Kenya, and Uganda. The introduction of the Tanzanian Shilling marked the country’s economic independence following the end of British colonial rule. Over the years, the currency has undergone several changes, including the introduction of new banknotes and coins to accommodate inflation and changing economic conditions.
Denominations of the Tanzanian Shilling
The Tanzanian Shilling comes in both coins and banknotes. Coins are available in denominations of 50, 100, 200, and 500 shillings, while banknotes are available in denominations of 1,000, 2,000, 5,000, and 10,000 shillings. Each coin and banknote features images that reflect Tanzania’s rich cultural heritage and natural beauty, such as wildlife, historical figures, and national landmarks.
Here’s a quick breakdown of the denominations:
Coins:
- 50 Shillings
- 100 Shillings
- 200 Shillings
- 500 Shillings
Banknotes:
- 1,000 Shillings
- 2,000 Shillings
- 5,000 Shillings
- 10,000 Shillings
Understanding Exchange Rates
Understanding the exchange rate is crucial when dealing with foreign currency. The exchange rate between the Tanzanian Shilling and other currencies, such as the US Dollar or Euro, can fluctuate based on various economic factors. It’s important to stay updated on current rates to ensure you’re getting the best value for your money.
Current Exchange Rates
As of the time of writing, 1 USD is approximately equivalent to 2,300 Tanzanian Shillings, and 1 Euro is roughly equivalent to 2,700 Tanzanian Shillings. However, these rates can change, so it’s advisable to check the latest rates before exchanging money or making any significant purchases.
Where to Exchange Currency
Currency exchange services are widely available throughout Tanzania. You can exchange money at airports, banks, hotels, and authorized forex bureaus. While exchanging money at the airport may be convenient, forex bureaus in city centers often offer better rates. It’s recommended to compare rates at different locations before exchanging large amounts.
Tips for Exchanging Currency:
- Avoid exchanging money on the street: Street money changers might offer tempting rates, but they can be unreliable and might scam you with counterfeit bills.
- Keep receipts: Always ask for a receipt when exchanging money. It will be useful if you need to reconvert your remaining shillings before leaving Tanzania.
- Exchange in small amounts: It’s advisable to exchange small amounts as needed rather than converting all your money at once. This minimizes the risk of loss or theft.
Using Credit and Debit Cards in Tanzania
While the Tanzanian Shilling is the primary currency for transactions, many places also accept major credit and debit cards, especially in urban areas and tourist destinations. However, there are some important considerations to keep in mind when using cards in Tanzania.
Acceptance of Credit and Debit Cards
Credit and debit cards are widely accepted in hotels, upscale restaurants, and larger stores in cities like Dar es Salaam, Arusha, and Zanzibar. Visa and Mastercard are the most commonly accepted cards, while American Express and Discover may not be accepted everywhere. In rural areas and smaller towns, cash is often preferred, so it’s essential to carry enough Tanzanian Shillings for your daily expenses.
ATM Access and Fees
ATMs are available in most cities and towns across Tanzania, allowing you to withdraw Tanzanian Shillings directly from your bank account. However, it’s important to be aware of potential fees associated with using ATMs in Tanzania.
Tips for Using ATMs:
- Choose ATMs affiliated with major banks: These ATMs are more likely to be reliable and secure. Popular banks in Tanzania include CRDB Bank, National Bank of Commerce (NBC), and NMB Bank.
- Check withdrawal limits: ATMs in Tanzania often have daily withdrawal limits, typically around TSh 400,000 to TSh 800,000 (approximately $175 to $350 USD). Plan your withdrawals accordingly.
- Beware of fees: Your home bank may charge international transaction fees for ATM withdrawals. Additionally, the Tanzanian bank may charge a fee for using their ATM. It’s advisable to check with your bank before traveling to understand these fees.
Informing Your Bank
Before traveling to Tanzania, inform your bank about your trip to avoid having your card blocked due to suspicious activity. It’s also a good idea to have a backup card in case of emergencies.
Tips for Handling Cash in Tanzania
Cash is king in many parts of Tanzania, especially in rural areas and for smaller transactions. Handling cash safely and efficiently is key to a hassle-free experience.
Carrying Cash Safely
When traveling with cash, it’s important to be mindful of safety. Here are some tips to help you manage your cash while traveling in Tanzania:
- Use a money belt or hidden pouch: Carry your cash and valuables in a money belt or hidden pouch to reduce the risk of theft.
- Split your cash: Avoid keeping all your cash in one place. Split it between your wallet, luggage, and hidden compartments to minimize the risk of losing everything if you’re pickpocketed.
- Avoid flashing cash: Be discreet when handling money in public. Avoid counting large sums of cash in crowded places, as this could attract unwanted attention.
- Keep small bills handy: Carry smaller denominations for everyday expenses like tipping, buying snacks, or paying for transportation. It’s often difficult to get change for larger bills, especially in rural areas.
Tipping Etiquette in Tanzania
Tipping is a common practice in Tanzania, especially in the service industry. While tipping is not mandatory, it’s appreciated as a gesture of gratitude for good service.
Common Tipping Guidelines:
- Restaurants: Tipping 10% of the bill is customary in restaurants, especially in cities and tourist areas. In some cases, a service charge may already be included in the bill, so check before tipping.
- Guides and Drivers: It’s customary to tip safari guides, drivers, and porters. A general guideline is $10 to $20 USD per day for guides and $5 to $10 USD per day for drivers and porters.
- Hotel Staff: You can tip hotel staff, such as housekeepers and bellhops, around TSh 5,000 to TSh 10,000 (approximately $2 to $4 USD) per day.
- Taxi Drivers: Tipping taxi drivers is not expected, but rounding up the fare to the nearest thousand shillings is a common practice.
Mobile Payments and Digital Wallets in Tanzania
In recent years, mobile payments and digital wallets have become increasingly popular in Tanzania. These services offer a convenient and secure way to pay for goods and services without carrying cash.
Popular Mobile Payment Services
The most widely used mobile payment platforms in Tanzania are M-Pesa, Tigo Pesa, and Airtel Money. These services allow users to send and receive money, pay bills, and purchase goods and services directly from their mobile phones.
How Mobile Payments Work:
- Registering: To use mobile payments, you’ll need a Tanzanian SIM card and a mobile phone. Register with your preferred service provider (Vodacom, Tigo, or Airtel) to activate your mobile wallet.
- Funding your account: You can fund your mobile wallet by depositing cash at an authorized agent or transferring money from your bank account.
- Making payments: Once your account is funded, you can make payments by entering the recipient’s phone number and the amount you wish to send. The transaction is instant, and both parties receive a confirmation message.
Using Mobile Payments as a Tourist
As a tourist, you may find mobile payments useful for paying local vendors, purchasing tickets, and even tipping. However, setting up a mobile wallet may be more complicated for short-term visitors. In this case, you can ask a local guide or trusted contact to make payments on your behalf using their mobile wallet.
The Cost of Living and Budgeting for Your Trip
Understanding the cost of living in Tanzania will help you budget effectively for your trip. While Tanzania is generally an affordable destination, prices can vary depending on the region and the type of experience you’re seeking.
Average Costs in Tanzania
Here’s a rough guide to typical costs you might encounter during your trip to Tanzania:
Accommodation:
- Budget hotels/guesthouses: $20 – $50 USD per night
- Mid-range hotels: $50 – $150 USD per night
- Luxury hotels and lodges: $150 – $500+ USD per night
Food and Drink:
- Local restaurants (per meal): $3 – $10 USD
- Western-style restaurants (per meal): $10 – $30 USD
- Bottle of water: $0.50 – $1 USD
- Local beer: $1 – $2 USD
Transportation:
- Taxi fare (within the city): $5 – $10 USD
- Long-distance bus (e.g., Dar es Salaam to Arusha): $20 – $30 USD
- Domestic flight: $100 – $250 USD
Activities:
- National park entry fees: $30 – $60 USD per person per day
- Guided tours and safaris: $150 – $600+ USD per day
Tips for Budgeting
When planning your budget, consider the following factors:
- Exchange rates: Keep an eye on exchange rates to determine the best time to convert your money.
- Travel season: Prices for accommodation and activities can vary depending on the time of year. The high season (June to October) tends to be more expensive than the low season (March to May).
- Type of experience: Tanzania offers a wide range of experiences, from budget-friendly backpacking adventures to luxury safaris. Your budget will depend on the type of trip you’re planning.
Currency Restrictions and Customs Regulations
When entering or leaving Tanzania, it’s important to be aware of the country’s currency restrictions and customs regulations.
Importing and Exporting Currency
According to Tanzanian law, travelers are allowed to bring in or take out up to $10,000 USD or its equivalent in other currencies without declaring it to customs. If you’re carrying more than this amount, you must declare it upon arrival or departure. Failure to do so can result in fines or confiscation of the excess amount.
Customs Regulations
In addition to currency restrictions, there are other customs regulations you should be aware of when traveling to Tanzania. These include restrictions on the importation of certain goods, such as firearms, drugs, and counterfeit items. It’s important to familiarize yourself with these regulations to avoid any issues at the border.
Money-Saving Tips for Travelers
Traveling to Tanzania doesn’t have to break the bank. With some careful planning and smart choices, you can enjoy an incredible experience without overspending.
Take Advantage of Local Markets
One of the best ways to save money and immerse yourself in Tanzanian culture is by shopping at local markets. Here, you can find fresh produce, handmade crafts, and traditional clothing at reasonable prices. Bargaining is common in markets, so don’t be afraid to negotiate for a better deal.
Use Public Transportation
While taxis and private transfers are convenient, they can be expensive. To save money, consider using public transportation, such as local buses (dala-dalas) or shared taxis (bajajis). These options are much more affordable and provide a more authentic travel experience.
Stay in Budget Accommodation
Tanzania offers a range of accommodation options to suit every budget. While luxury lodges and hotels offer top-notch amenities, budget travelers can find comfortable and affordable guesthouses, hostels, and campsites throughout the country.
Travel During the Low Season
If your travel dates are flexible, consider visiting Tanzania during the low season (March to May). During this time, you’ll find lower prices for accommodation and activities, as well as fewer tourists at popular attractions.
Plan Your Activities in Advance
Planning your activities in advance can help you avoid overspending on last-minute tours and excursions. Research the costs of activities, such as safaris, guided tours, and national park fees, before you arrive in Tanzania. Booking in advance can also give you access to discounts and special offers.
Conclusion
Navigating Tanzania’s currency and financial system is an essential part of ensuring a smooth and enjoyable trip. By understanding the Tanzanian Shilling, exchange rates, and the best practices for handling money, you’ll be well-prepared to manage your finances during your adventure in this beautiful country. Whether you’re exploring bustling cities, embarking on a safari, or relaxing on the coast, being informed about the local currency will enhance your travel experience and help you make the most of your time in Tanzania.
With the tips and information provided in this guide, you can confidently approach your trip to Tanzania, knowing that you’re equipped to handle your finances like a seasoned traveler. Safe travels and enjoy your journey to Tanzania!
