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Foreigners barred from key small businesses as Tanzania enforces strict new rules
What you need to know:
- The move, announced through Government Notice No. 487A dated July 28, 2025, aims to reserve key economic spaces for Tanzanian citizens in an effort to empower local entrepreneurs and protect national interests.
Dar es Salaam. The government has officially banned foreign nationals from engaging in a wide range of small and medium-sized business activities, signalling a major shift in Tanzania’s licensing regime and domestic economic policy.
The move, announced through Government Notice No. 487A dated July 28, 2025, aims to reserve key economic spaces for Tanzanian citizens in an effort to empower local entrepreneurs and protect national interests.
The directive, titled the Business Licensing (Prohibition of Business Activities for Non-Citizens) Order, 2025, was issued by the Minister for Industry and Trade, Dr Selemani Saidi Jafo. It prohibits foreigners from participating in 15 specific types of business, ranging from general trade to service provision, media, tourism, and light industry.
Licensing authorities have been ordered to immediately stop issuing or renewing business licences to non-citizens for the listed activities.
Non-compliance could result in a fine of up to Sh10 million, imprisonment for up to six months, or both. Additionally, violators risk having their residence permits and visas revoked. Tanzanian citizens who assist or facilitate foreigners in undertaking these prohibited activities may also face legal penalties, including a fine of Sh5 million or a three-month jail term.
One of the most notable restrictions is the ban on general retail and wholesale trade by non-citizens. However, exemptions have been made for supermarkets, specialised outlets, and wholesale centres that primarily serve local producers.
Foreigners are no longer permitted to operate mobile money transfer businesses, a rapidly growing sector in the region. Similarly, the repair of mobile phones and other electronic devices has been reserved for Tanzanians. The same applies to hair and beauty salons unless they are located within hotels or serve tourism-specific purposes.
The government has also restricted foreigners from offering domestic, office, and environmental cleaning services. They are further barred from engaging in small-scale mining operations, or in postal and local parcel delivery services.
In the tourism sector, tour guiding within the country is now limited to Tanzanian nationals. Foreign nationals are also no longer allowed to establish or operate radio or television stations, or to run museums and curio shops.
The order goes further to target intermediary services and light industry. Foreigners are prohibited from acting as brokers or agents in business and real estate transactions. They are also restricted from engaging in clearing and forwarding services, and from purchasing crops directly from farms.
Gambling operations outside licensed casino premises are off-limits to non-citizens, as is the ownership and operation of micro and small industries.
However, the order provides a transition period for non-citizens who currently hold valid business licences in the affected sectors. These individuals will be allowed to continue operations only until their existing licences expire.
This far-reaching policy is part of a broader government strategy to promote citizen-led growth, expand economic opportunities for Tanzanians, and reshape the structure of local business ownership. The move is likely to compel foreign investors to reassess their market strategies and engagement within the country.
