In Summary
- Similarly, Tanzanian citizens who assist or enable non-citizens to engage in these restricted businesses face fines of up to five million shillings or imprisonment for up to three months.
- However, the order allows a transitional arrangement for non-citizens who currently hold valid licenses for the prohibited activities. These individuals may continue operating only until their existing license expires.
Dar Es Saalam, Tanzania — In a bold move to reserve specific economic sectors for its nationals, the Government of Tanzania has officially prohibited non-citizens from engaging in 15 designated business activities, marking a significant shift in the country’s business environment.
The decision, formalized through Government Notice No. 487A issued on July 28, 2025, stems from a new legal order titled The Business Licensing (Prohibition of Business Activities for Non-Citizens) Order, 2025. The directive was signed by the Minister for Industry and Trade, Hon. Selemani Saidi Jafo, and is anchored in Section 14A(2) of The Business Licensing Act (Cap. 101).
According to the notice, individuals without Tanzanian citizenship—defined under the Tanzania Citizenship Act—are now barred from applying for or renewing licenses to operate in the listed sectors.
Prohibited Business Activities for Non-Citizens
The following 15 business activities are now off-limits to non-citizens:
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Wholesale and retail sale of goods (except supermarkets, specialized outlets, and local wholesale centers)
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Mobile money transfers
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Repair of mobile phones and electronic devices
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Salon businesses (excluding those in hotels or for tourism purposes)
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Home, office, and environmental cleaning services
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Small-scale mining
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Postal and domestic parcel delivery services
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Tour guiding
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Publishing and broadcasting (radio and TV)
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Operating kiosks or small shops
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Business and real estate brokerage
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Clearing and forwarding services
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On-farm and off-farm purchasing
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Gambling machine operation (except in casinos)
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Operation of micro and small-scale industries
The Ministry has directed all licensing authorities to immediately stop issuing or renewing licenses for non-citizens involved in the banned categories.
Stiff Penalties for Violators
Non-citizens found violating the order will face a minimum fine of TSh10 million (approx. USD 3,900) or imprisonment of up to six months. Additionally, their visas or residence permits may be revoked. Tanzanian citizens found aiding or abetting non-citizens in contravention of this law also face penalties—fines of up to TSh5 million or three months’ imprisonment.
Transitional Provision in Place
However, the government has offered a transitional window for non-citizens who currently hold valid licenses in any of the prohibited sectors. These individuals will be permitted to continue operating only until their current licenses expire, after which they must cease business activities unless otherwise permitted under new legal arrangements.
Policy Rationale
The Ministry of Industry and Trade emphasized that the legal move is part of a broader economic empowerment agenda designed to prioritize Tanzanian citizens in key sectors of the economy, particularly small and medium enterprises (SMEs) that have traditionally been a stronghold for local entrepreneurship.
“This measure is aimed at protecting and promoting opportunities for Tanzanians, especially in informal and lower-capital sectors that are vital for local job creation,” said a senior official from the Ministry.
Regional Implications and Business Reactions
The announcement has sparked reactions across the East African region, with some stakeholders warning of potential friction with regional trade agreements under the East African Community (EAC) framework. However, Tanzanian authorities maintain that the directive is in line with national interests and legal sovereignty.
The new order takes effect immediately and is expected to trigger a re-evaluation of existing foreign-owned businesses in Tanzania, as the government signals a decisive turn towards economic nationalism.
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