Debt Collection Tanzania | Cedar Financial

Get Paid in Tanzania

Fast Tanzania debt collection you can count on

With a weak business environment and higher risk of nonpayment, having local East Africa debt collection experts on your side is essential for success. Cedar Financial’s local offices in Tanzania can recover more, with:

  • Tanzania credit reports and skip tracing services
  • In-person field visits to your debtor’s location
  • Experienced creditor’s rights attorneys in Tanzania

With local collectors in Dar es Salaam and elsewhere, our “People-First” approach is proven to resolve more accounts. Whether your claim is new or old, large or small, consumer or commercial, we can help.

See why Fortune 500 companies trust us with their accounts in Tanzania.

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Top Challenges in Tanzania Debt Collection

Language and Cultural Barriers

Tanzania has no de jure official language. With over 100 languages spoken, it is the most linguistically diverse country in East Africa. The national language is Swahili, however, only 10% of citizens speak Swahili as a first language, and 90% speak it as a second language.

English is used in foreign trade, diplomacy, high courts and education, but the country is in the process of eliminating it in education.

To avoid any potential setbacks, it’s important to hire a Tanzania debt collection agency that is familiar with the local language and customs. Cedar Financial provides on-the-ground representatives local to your debtors in Tanzania for the best chance of recovering your funds.

Weak Business Environment

The business environment in Tanzania is difficult to navigate, with a weak intuitional framework that makes debt collection in the country unpredictable. Corporate financial information is often unavailable or unreliable, resulting in increased risk in commercial transactions between businesses.

Cedar Financial’s local Tanzania collection experts are familiar with the ins and outs of debt recovery in Tanzania, greatly increasing your chances of getting paid. We offer skip tracing, in-person field visits and credit reports to help you reduce risk and recover more.

Contact us today to learn more.

High Interest Rates, Fraud Risk and Poverty

While competition has resulted in improved financial services in the region, Tanzania is still prone to high interest rates, reflecting high fraud risk. The financial sector has recently expanded, with foreign-owned banks making up 48% of the banking industry’s assets.

In addition, while the country has experienced sustained economic growth due to its wealth of natural resources, strong telecom and banking industries and tourism, most of Tanzania’s population has not benefitted. The country ranks as one of the lowest for per capita income and on the Global Hunger Index, with hunger and malnourishment worse than every other EAC country except Burundi.

Worried about the financial risks of doing business in Tanzania?

Cedar Financial’s accounts receivable management solutions can help you mitigate your risk abroad. Talk to one of our Credit Risk Consultants free of charge today.

Submitting claims is fast and easy.

Litigation in Tanzania

While every effort is made to resolve accounts amicably, sometimes a firmer approach is needed. Here’s what you need to know about legal process in Tanzania.

Two Parallel Judicial Systems in One Country

Tanzania is unique in that there are two judicial systems existing simultaneously: mainland Tanzania (formerly Tanganyika) and Zanzibar.

This is a result of the union of the two countries in 1964. Due to differing colonial experiences and administration of justice, they decided to remain as two separate entities within Tanzania and operate parallel to one another.

Zanzibar’s system consists of the High Court of Zanzibar, the Magistrate’s Courts (resident, district and primary) and the Kadhis’ Courts for Muslim Law matters. Both mainland Tanzania and Zanzibar cooperate for the Court of Appeal and Constitutional Court, which has never been convened.

It’s much easier to recover your funds when you have skilled Tanzania debt collection attorneys on your side. Cedar Financial has carefully vetted expert debt collection lawyers in Tanzania who are familiar with these complex systems and ready to pursue your claim to the fullest extent of the law.

With low-cost legal options available, we make litigation in Tanzania affordable and stress-free. Request a quote for your claim today.

Arbitration Underdeveloped

Arbitration in Tanzania is underdeveloped, which means your best bet for collecting debts in Tanzania is through amicable debt collection efforts or legal action.

Skilled local Tanzania debt collectors can help you increase your chances of recovery earlier in the process, reducing costs and increasing cash flow for your business. Submit your claims with Cedar Financial today to see what we can do for your business.

Bankruptcy Petitions at the Discretion of the Court

While most countries have a unified bankruptcy law for consumers and companies, Tanzania has separate laws. For consumers, the Bankruptcy Act No 9. of 1930. For companies, the Companies Act 12 of 2006, for insolvency/winding up of corporations.

The success of the creditor’s petition rests solely at the discretion of the Court, as laws may be widely interpreted. The Court also essentially has blanket authorization to stay proceedings if the notice was not served properly, if the debtor’s liability is determined by trial or any other reason it deems sufficient.

At Cedar Financial, we don’t just pursue your claim in court – our in-house legal team reviews each claim carefully for collectability before advancing to legal collections in Tanzania, ensuring maximum chance of recovery before, during and after litigation.

To learn more about our legal process, contact us today.

Recover more with top debt collection attorneys in Tanzania.

Quick Facts About Debt Collection in Tanzania

Open Invoices

Unpaid Invoice Interest Rate There are no laws limiting interest rate, but the Bank of Tanzania publishes indicative interest rates to the general public on its website.
Can Collection Fees be added?
Statute of Limitations/Prescription 6 years for simple debts


Post Judgment Interest Rate Not exceeding 7% per annum
Judgment Expiration 12 years
Can judgment be renewed?

Local Experts in Collections

We offer on-the-ground representatives in Tanzania who understand the debt collection practices that work to support full recovery of your funds.


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FAQs About Debt Collection in Tanzania

Why should we ask you to collect our debts in Tanzania?

We are familiar with local laws and customs and employ a number of different divisions to connect you to the right debt collection service so you can recover your debt quickly.

What does it cost to hire you to recover the amount due to us?

For pre-legal services, we work on a “no collection – no fee” basis, so you will only pay when your funds are recovered. For legal services, we offer low-cost options.

What is the minimum amount or number of accounts you will accept?

We have no minimum value or volume that is required to place accounts.

What type of debt do you service?

We service consumer and commercial debts, large or small, across many industries.

How long will your amicable (non-legal) debt collection process take?

Normal debt collection proceedings can take up to one year.

What is the typical debt collection process?

We start with an initial investigation into the debtor’s registration and credit information. Phone calls, demand letters, emails and sometimes faxes are then sent out. If the debt is disputed, we request proof from the debtor to send to the creditor. If the debtor cannot be contacted, our Tracing Center will carry out an address and phone search. We also request a face-to-face meeting, if necessary. If all efforts do not lead to payment, we may suggest a legal filing.

What is the statute of limitations in Tanzania, for older debts?

The statute of limitations in Tanzania is six years for simple debts.

Do you provide field services?

Yes, we provide on-the-ground representatives to visit your debtor in person at their location. We skip trace, contact evasive debtors and investigate assets for potential legal action.

Do I need to provide documentation?

Yes, of course. We need all the relevant documents about the case, which includes any invoices, the debtor’s information and other supporting documents.

Do you offer litigation services if you exhaust all amicable collection efforts without recovery?

Yes. In the event all amicable efforts are exhausted, our in-house legal team will conduct a thorough review of the file to determine collectability in litigation. If the file qualifies and you approve, we will work with the local attorney in your debtor’s jurisdiction to file suit and pursue the claim, including asset location, arbitration, trial representation, obtainment of a judgment and post-judgment enforcement.

Are collection fees legal to be added to the balance owed?

* The information provided on this website does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only. Information on this website may not constitute the most up-to-date legal or other information.

Cedar Financial