Why Tanzania’s finance leaders face tough times

Dar es Salaam. Tanzania’s finance professionals face a demanding period as businesses adjust to changes under the Finance Act 2026 while preparing for new financial reporting, sustainability assurance and artificial intelligence requirements.

The changes include implementation of the Finance Act, preparations for International Financial Reporting Standard 18 (IFRS 18), expanded sustainability reporting and assurance requirements, and growing use of artificial intelligence in finance, audit and tax functions.

IFRS 18, which changes how companies present and disclose financial information, will apply to annual reporting periods beginning on or after January 1, 2027.

Radiant Auditors and Tax Advisors Managing Director Miraji Mustapha Bango said the overlapping changes would require greater coordination among finance teams, management, boards and auditors.

“Finance leaders are dealing with several significant developments at the same time. Each has different technical requirements, but all of them depend on reliable information, sound internal controls and informed professional judgement,” Mr Bango said.

He was speaking ahead of the inaugural Radiant Finance & Tax Forum 2026, scheduled for Mwanza from November 19 to 21 under the theme, “Navigating the Future of Finance: IFRS, Tax Reforms, AI and Emerging Professional Issues.”

The Finance Act 2026 came into effect on July 1, requiring businesses to incorporate its changes into tax procedures, financial controls and daily operations.

Companies must also continue managing established areas of tax exposure, including value-added tax, withholding tax, transfer pricing and cross-border transactions.

Mr Bango said weak documentation, inconsistent interpretation and gaps in internal controls could lead to incorrect tax treatment, disputes, penalties and unexpected liabilities.

IFRS 18 introduces a new structure for presenting financial performance, including defined categories for income and expenses and mandatory subtotals in the statement of profit or loss. It also requires disclosures on management-defined performance measures.

The standard is intended to make company performance easier for investors and other users of financial statements to understand and compare.

Although IFRS 18 takes effect in 2027, companies will need comparative information from the preceding reporting period, meaning preparations may need to begin during 2026.

“This is much more than a change to the appearance of financial statements. It may affect how financial information is captured, classified, reviewed and explained,” Mr Bango said.

The reporting agenda also includes sustainability disclosures and preparations for assurance over sustainability information following a 2026 technical pronouncement by the National Board of Accountants and Auditors (NBAA).

The requirements will increase the focus on governance, internal controls, data quality, reporting systems and technical capacity to support sustainability disclosures and assurance.

“Companies cannot treat sustainability disclosure as a corporate communications exercise. The information must be supported by governance, reliable data and controls that can withstand professional scrutiny,” Mr Bango said.

Artificial intelligence is adding another layer of change as businesses increasingly use automated tools to analyse financial information, identify unusual transactions and support audit, tax and reporting work.

While AI can improve efficiency, its use raises questions around data quality, confidentiality, bias, transparency and accountability.

“Artificial intelligence can support professional work, but it cannot assume professional responsibility,” Mr Bango said.

The Mwanza forum will bring together finance executives, accountants, auditors, tax practitioners, audit committee members and professionals in financial reporting, risk and technology.

Sessions will cover IFRS 18, sustainability reporting and assurance, audit quality, the Finance Act 2026, VAT, withholding tax, transfer pricing, cross-border taxation and responsible use of AI.

The technical programme will be followed by a Serengeti study tour on the third day, providing an opportunity for professional networking and further discussion.