Tanzania Bans Foreigners from 15 Business Activities in Economic Localization Push
Tanzania has implemented sweeping new restrictions, banning non-citizens from engaging in 15 specific business activities. This move, formalized through The Business Licensing (Prohibition of Business Activities for Non-Citizens) Order, 2025, which was published on July 28, 2025, aims to bolster local entrepreneurship, reserve opportunities for Tanzanian citizens, and reduce foreign competition in key sectors traditionally dominated by small and medium-sized enterprises (SMEs).
Details of the Ban:
The directive, signed by the Minister for Industry and Trade, Dr. Selemani Jafo, prohibits licensing authorities from issuing or renewing permits for foreigners in a wide range of micro and small enterprises. The 15 banned activities for non-citizens include:
Wholesale and Retail Trade: This excludes supermarkets, specialized product outlets, and wholesale centers for local producers.
Mobile Money Transfer Services: This is a significant restriction in a country where mobile money is a crucial digital financial service.
Repair of Mobile Phones and Electronic Devices: Foreign-operated repair shops are now off-limits.
Salon Businesses: Unless the salon is conducted within a hotel or caters specifically to tourism purposes.
Home, Office, and Environmental Cleaning Services.
Small-Scale Mining.
Postal Activities and Parcel Delivery within the country.
Tour Guiding within the country.
Establishment and Operation of Radio and Television Stations.
Operation of Museums or Curio Shops.
Brokerage or Agency in business and real estate.
Clearing and Forwarding Services.
On-Farm Crop Purchasing Operations.
Ownership or Operation of Gambling Machines or Devices, except within licensed casino premises.
Ownership and Operation of Micro and Small Industries.
Why the New Rules?
Economic Localization: The primary goal is to empower local entrepreneurs and ensure that small-scale business opportunities remain accessible to Tanzanian citizens. This reflects a growing trend in Africa to tighten local-ownership rules and shield domestic enterprises.
Addressing Public Concerns: The directive comes amid rising concerns and complaints from some Tanzanians that foreign nationals, particularly from countries like China, have increasingly encroached upon business activities traditionally reserved for locals, especially in high-density trading zones such as Dar es Salaam's Kariakoo market.
Job Creation and Income Generation: The government sees these sectors as vital for local job creation and income generation.
Implications and Penalties:
Existing Businesses: For foreigners currently holding valid licenses in the restricted sectors, they will be permitted to continue operating only until their current licenses expire. No extensions or renewals will be granted beyond that point.
Penalties for Violation: Any non-citizen found violating the ban will face severe penalties, including a fine of not less than 10 million Tanzanian Shillings (approximately $3,898), imprisonment for up to six months, or both. Additionally, their visa and residence permit will be revoked, and business assets may be forfeited.
Aiding Non-Citizens: Tanzanians found aiding or facilitating non-citizens in partaking in these prohibited businesses may also face penalties, including a fine of up to 5 million TZS or three months' imprisonment.
Impact on Foreign Investor Confidence: While the move aims to create a more enabling environment for Tanzanian citizens, critics warn it could potentially dampen foreign investor confidence, particularly among small-scale and informal investors already operating in the country. Kenya, a key East African Community (EAC) partner, has already expressed concerns, with its Cabinet Secretary in the Ministry of Investments, Trade and Industry stating they will hold meetings with Tanzania in early August to address these "discriminatory" measures.
This policy follows a similar move in May 2025, when Tanzania also banned the use of foreign currency in domestic transactions, further signaling a push towards greater economic self-reliance and control.
I'm Aisha shehu
Talksocialtalka News
