By Kennedy Nalyanya
Dar es Salaam, Tanzania – In a significant policy shift aimed at bolstering local entrepreneurship and safeguarding domestic economic interests, Tanzania has officially prohibited non-citizens from operating in 15 specific categories of small and medium-sized businesses. The directive, formalized through Government Notice No. 487A, "The Business Licensing (Prohibition of Business Activities for Non-Citizens) Order, 2025," took effect on July 28, 2025.
This move, widely reported across mainstream news outlets such as The Citizen, Nile Post, and Pulselive Kenya, underscores Tanzania's commitment to empowering its citizens in sectors traditionally dominated by local informal and small-scale traders. The Minister for Industry and Trade, Selemani Saidi Jafo, signed the directive, making it immediately effective.
Among the 15 business categories now exclusively reserved for Tanzanian citizens are:
- Wholesale and retail trade (with exceptions for supermarkets, specialized product outlets, and wholesale centers for local producers)
- Salons and barber shops (unless conducted within hotels or for tourism purposes)
- Restaurants
- Mobile money transfer services
- Repair of mobile phones and electronic devices
- Tour guiding within the country
- On-farm crop purchasing operations
- Small-scale mining
- Postal activities and parcel delivery within the country
- Establishment and operation of radio and television stations
- Operation of gambling machines outside casino premises
- Museums or curio shops
- Brokerage or agency services in business and real estate
- Clearing and forwarding services
- Ownership and operation of micro and small industries
- Home, office, and environmental cleaning services
- Mobile food vendors
- Repair and maintenance of radio and television
- Operation of motorcade or car hire services
- Provision of entertainment and gaming machines or devices, except within casino premises
The directive explicitly states that licensing authorities are now barred from issuing or renewing business licenses for non-citizens in these prohibited sectors. For foreign nationals already operating businesses in these categories, their existing permits will remain valid only until their expiration date, ensuring a gradual phase-out rather than an abrupt halt.
The Tanzanian government has backed this prohibition with stringent penalties to ensure compliance. Violators found operating in the restricted categories face severe repercussions, including fines of up to 10 million Tanzanian shillings, imprisonment for up to six months, or deportation. Furthermore, the order extends penalties to Tanzanian citizens who might attempt to circumvent the law by aiding or assisting non-citizens in these prohibited activities, making them liable for fines or imprisonment.
This policy aligns Tanzania with a growing trend among African nations, including South Africa, Ghana, Zimbabwe, Nigeria, Eswatini, Zambia, and Botswana, which have implemented similar protectionist measures to ring-fence specific economic spaces for their citizens. The move is largely seen as a response to public concerns that foreign nationals, particularly from countries like China, have increasingly dominated small-scale and retail businesses in high-density trading zones such as Dar es Salaam's Kariakoo market, areas traditionally preserved for local entrepreneurs.
While the primary aim is to foster a more enabling environment for Tanzanian citizens to thrive economically and enhance their participation in key sectors, some analysts suggest the directive could potentially dampen foreign investor confidence, especially among small-scale and informal investors already operating in the country. The long-term impact on foreign direct investment and overall economic growth will be closely monitored as Tanzania navigates this new protectionist landscape.
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