This study addresses three distinct but interrelated issues in the integration of local food suppliers in modern food distribution in Tanzania. These issues are: What are key factors driving the development of modern food retailing in Tanzania? What factors influence the participation of local modern food suppliers in the industry? And, finally: What policies and strategies can be adopted to increase local suppliers‘ participation in the industry? The study used a critical realism case study approach, in which nine local food suppliers and seven modern food retailers participated.