Alcoholic Drinks in Tanzania

Sales of alcoholic drinks continue to be driven by the wide popularity of beer among both local people and tourists. Although a stricter approach is being taken to informal sales of alcohol, the strong tradition for homebrewed beer and artisanal spirits may be difficult to overcome.

Market insight: COVID-19 impact

With the government of Tanzania not having responded to the presence of COVID-19 in the country with an official lockdown and with only moderate official restrictions having been placed on the movements and activities of the country’s population, sales of alcoholic drinks in the country have been less negatively affected by the COVID-19 situation than what has been seen in many other countries. The only major drags on sales have been the absence of foreign tourists due to the suspension of international passenger flights and the economic uncertainty that has emerged in the wake of the COVID-19 pandemic at global level.

Country insight: COVID-19 impact

As of 17 September 2020, Tanzania had seen 21 deaths due to COVID-19 and 509 cases. However, it is important to note that 29 April was the last day that official data on COVID-19 was released and that no updates have been issued since then.

Country insight: Pre-COVID-19

Alcohol consumption is generally acceptable in Tanzania, especially amongst the younger working population. It is common for colleagues to go out for drinks after working hours on Fridays and for friends to meet for drinks at the weekends.

Socioeconomic trends

The tougher economic conditions that began to emerge in Tanzania during 2016 led to falling disposable income levels for many households, with only modest growth in income levels seen for most since then. Unsurprisingly, this has led to falling consumer confidence, which has in turn been reflected in pressure coming on alcohol consumption.

Logistics/infrastructure

Due to several years of improvements being made to Tanzania’s intercity roads, the transportation of alcoholic drinks is relatively easy between the country’s main cities. However, this is not the case in rural areas, which are mainly accessible only by dirt roads, making them difficult to reach during rainy seasons.

Legislation

Both the legal drinking age and legal purchasing age remained at 18 years in Tanzania in 2019. Most producers also feature the warning on packaging: “Not for sale to persons under the age of 18.

Taxation and duty levies

Tanzania’s 2019/2020 budget saw excise tax on non-grape wine made from more than 75% domestic fruit reduced from TZS200 per litre to TZS 61 per litre. These changes came into effect during July 2019.

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