Is sustainability reporting mandatory in Tanzania?
Yes. In July 2024, NBAA adopted IFRS S1, IFRS S2 and all future ISSB standards through Technical Pronouncement No. 1 of 2024, and made them mandatory for public interest entities and public sector entities for financial years beginning on or after 1 January 2025.
That makes Tanzania one of the first African countries where IFRS S1 and S2 reporting is already required. Companies outside the mandatory group may apply the standards voluntarily.
Mandatory for financial years from
1 January 2025
Other companies may apply the standards voluntarily.
Which companies are public interest entities in Tanzania?
A public interest entity in Tanzania is any entity that meets one of three tests: its shares or debt are traded on a public market, it holds assets on behalf of a broad group of outsiders, or it is a large commercial entity providing essential or strategic goods and services to the public.
Listed and issuing entities
Entities whose debt or equity is traded in a public market, or that are in the process of issuing such instruments.
Entities holding assets for others
Banks, credit unions, insurance companies, securities brokers and dealers, mutual funds and investment banks.
Large strategic companies
Commercial entities with total gross capital of at least TZS 50 billion that have significant influence in essential and strategic goods and services, including electricity generation and transmission, petroleum products and natural gas, water and sanitation, telecommunications, transport, the extractive industry, food processing and distribution, and communication and entertainment.
Public sector entities must report as well, and foreign publicly accountable entities follow the same rules as Tanzanian ones.
Where must sustainability disclosures appear in Tanzania?
In the report by those charged with governance, the report that accompanies the financial statements. From financial years beginning on 1 January 2027, the disclosures must sit after that report under the heading "Sustainability Disclosures", cover the same period as the financial statements and be cross-referenced to any related information elsewhere.
A company may also publish a separate, stand-alone sustainability report, provided it follows IFRS S1 and S2, matches the financial statements' period and timing, and does not replace the disclosures in the governance report. The disclosures are published at the same time as the financial statements, subject to the first-year timing relief in IFRS S1.
From financial years beginning 1 January 2027
When must Scope 3 emissions be disclosed in Tanzania?
Later than IFRS S2 alone would require. Tanzania phases in Scope 3 emissions category by category, beginning in 2026, with Category 15 disclosures required from 2028 and all categories phased in by 2029, giving up to three years more relief than the standard itself.
Category 15 covers financed emissions, so banks, insurers and asset managers have until 2028 to disclose the emissions of the companies they lend to and invest in. Scope 1 and Scope 2 emissions are required from the start.
This timetable is set out in NBAA's 2024 implementation roadmap and summarised in the IFRS Foundation's profile of Tanzania, which gives the 2026 start, the 2028 date for financed emissions and the 2029 end date.
Emissions timetable
- 2025Scope 1 and Scope 2 required
- 2026Scope 3 phase-in begins, category by category
- 2028Category 15: financed emissions
- 2029All Scope 3 categories phased in
What does the Bank of Tanzania require from banks?
The Bank of Tanzania issued two sets of guidelines in 2025: one on reporting sustainability-related risks and opportunities for banks and financial institutions, and one on managing and disclosing climate-related financial risks. Both require financial institutions to apply the ISSB standards in line with NBAA's roadmap.
Sustainability reporting guidelines
Reporting sustainability-related risks and opportunities for banks and financial institutions.
Climate-related financial risk guidelines
Managing and disclosing climate-related financial risks.
For a bank in Tanzania, that means two regulators expecting the same disclosures, and a financed emissions figure to prepare by 2028.
When does assurance of sustainability disclosures start in Tanzania?
NBAA has not yet set a date for sustainability assurance. Until it does, external auditors must check the sustainability disclosures under ISA 720, reporting any material inconsistency with the financial statements or with what they learned during the audit, or any disclosure that appears materially misstated.
NBAA's 2026 pronouncement also requires every reporting entity, including public sector entities, to carry out a comprehensive readiness assessment for assurance, covering governance, internal controls, systems, data quality, reporting processes, policies and competencies, and to close the gaps it finds. Audit firms must assess their own readiness to provide assurance under ISSA 5000, which the IAASB has made effective for periods beginning on or after 15 December 2026.
Until an assurance date is set
Readiness assessment covers
What about public sector entities?
Public sector entities in Tanzania report under IFRS S1 and S2, and follow the same placement rules as companies. They will move to the sustainability standards issued by the International Public Sector Accounting Standards Board once those become available and effective.
Like companies, public sector entities must carry out a readiness assessment to prepare for assurance.
Can listed companies still use GRI in Tanzania?
Yes, alongside IFRS S1 and S2. The Dar es Salaam Stock Exchange rules of 2022 allow listed companies to report environmental, social and governance information using ISO 26000 and the GRI Standards.
IFRS S1 and S2 are still required, and any additional information must not obscure the information they require. Companies must also state explicitly that they comply with the IFRS Sustainability Disclosure Standards as issued by the ISSB.
Dar es Salaam Stock Exchange rules, 2022