TAPBDS through its CEO, Mr. Joseph Migunda, recently appeared on Crown FM to discuss the Ministry of Industry and Trade’s proposal for a mandatory price tag regulation on products in the Tanzanian market.
In September, the bill was under debate in parliament, proposing fines ranging from TZS 10,000 to 1 million for non-compliance. As discussions intensified among lawmakers and business operators, TAPBDS offered key insights into the impact of this initiative on the Tanzanian business landscape.
“The market consists of many traders, approximately 75% of whom operate informally. As a result, setting price tags of products for every trader is only feasible for the few who are part of the formal system,” stated Migunda. He emphasised that many consumers are drawn to informal businesses due to the flexibility they offer, such as the ability to negotiate prices.
However, he also highlighted the benefits of price tags for both consumers and the government. “Setting product prices makes it easier for buyers to make informed decisions,” he explained. “It simplifies the communication of the value of what is being sold, allowing customers to relate the value of the product to the price they want to pay. Additionally, it would help the government regulate price manipulation in the market.”
The approach to implementing this regulation is gradual and pragmatic. He suggested that the government starts by applying the new rules to traders who are already part of the formal system. “It would be wise for the government to start with the small group of traders who are already in the formal business system, allowing them to learn and improve before approaching the larger group of informal traders,” Migunda advised.
He concluded by stressing the potential of formalising the informal sector, which accounts for the majority of traders. “The government should focus on formalising informal traders first, then gradually introduce price tags. This will ease the transition for traders and ensure a smoother implementation of the regulation,” Migunda added.
By addressing the concerns of both formal and informal traders, TAPBDS’ recommendations offer a pathway for sustainable market regulation, benefiting both businesses, consumers and the national economy in the long term.