Kariakoo audit spurs push for stronger local business protections

Dar es Salaam. The government is considering including a provision in this year’s Finance Bill to enhance legal protections for indigenous Tanzanian businesses, the Minister for Industry and Trade, Dr Selemani Jafo, has said.

Speaking in Dar es Salaam on Friday, June 6, 2025, after receiving a report from a special committee auditing businesses owned by foreigners, Dr Jafo said the government is committed to ensuring that economic opportunities intended for Tanzanians remain in local hands.

“The goal is to ensure that opportunities meant for indigenous people stay with them. The report outlines legal gaps and recommends which business sectors should be reserved for Tanzanians and those that may be open to foreign participation,” he said.

Dr Jafo noted that the committee completed a comprehensive review and proposed amendments to several key laws, incorporating feedback from local business owners.

Among the laws proposed for amendment are: the Companies Registration Act, Chapter 212 of 2002, the Licensing Act No. 25 of 1972, the Immigration Act, Chapter 54 (and its 2026 amendments), and the Investment Act

“These laws currently contain loopholes that are being exploited, allowing foreigners to enter sectors meant to be reserved for Tanzanians,” he explained.

He further stated that if the proposed bill to be tabled under the certificate of urgency is approved, its provisions will be integrated into this year’s Finance Bill.

However, if time constraints prevent this, the government will consider introducing the reforms through a separate bill or in future parliamentary sessions.

“This parliamentary session is focused on finance, so we may not have time to go through everything. But we are committed to ensuring key elements make it into the Finance Bill through other legal mechanisms,” said Dr Jafo.

He stressed that the government intends to create robust laws that close legal gaps and ensure long-term protection for local enterprises.

“There are specific sectors we propose to reserve for Tanzanians only, to safeguard local opportunities. This is a starting point, and we will continue refining the proposals in subsequent sessions,” he said.

Dr Jafo expressed confidence that within the next three weeks, the government will have a clear way forward on how to implement the committee’s recommendations.

“We want Tanzanians to benefit fully from their resources—just as other countries protect the interests of their citizens,” he said.

Committee findings

Presenting the report, Committee Chairperson, Mr Thabit Massa, said the audit aimed to assess compliance with business laws, regulations, and licensing procedures in the Kariakoo area.

He noted that the committee inspected 108 businesses and uncovered various irregularities, including unlicensed operations, counterfeit businesses, non-compliance with the Tanzania Revenue Authority (TRA) inspections, and revoked work permits.

Despite the challenges, Mr Mussa reported that the committee managed to collect revenues amounting to Sh393.2 million during the review period.