Tanzania has introduced sweeping new restrictions that ban foreigners from operating a wide range of small businesses, in a move the government says is aimed at protecting local livelihoods and boosting grassroots economic activity.
The regulation, known as the Business Licensing (Prohibition of Business Activities for Non-Citizens) Order, 2025, was officially published on July 28, 2025, under Government Notice No. 487A.
It was signed by Dr. Selemani Jafo, the Minister for Industry and Trade. Under the new directive, non-citizens are barred from participating in 15 specific business sectors that the government considers crucial for local economic empowerment.
These areas, traditionally dominated by Tanzanian nationals, are viewed as essential for job creation and income generation among ordinary citizens.
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Foreigners are now prohibited from:
—Operating salons, small retail shops, eateries, and mobile money transfer kiosks.
—Running mobile phone repair businesses.
—Providing tourism-related services such as tour guiding.
—Offering domestic, office, and environmental cleaning services.
—Engaging in small-scale mining and local parcel/postal delivery.
—Operating curio shops, museums, radio and TV stations.
—Acting as brokers or agents in real estate or business transactions.
—Participating in clearing and forwarding services.
—Buying crops directly from farms.
—Running gambling operations outside licensed casinos.
—Owning or managing micro and small industries.
Violators of the new rules face fines of up to Tsh10 million ($3,898), up to six months in jail, or both.
Foreign nationals caught engaging in these restricted businesses may also have their residence permits and visas revoked.
Tanzanians who assist foreigners in violating these restrictions risk fines of up to Tsh5 million ($1,949) or a jail term of up to three months.
The government maintains that these measures are part of a larger agenda to give Tanzanians greater control over their economy.
However, the move has sparked concern across the East African Community (EAC), where such unilateral restrictions are often seen as non-tariff barriers that undermine regional trade and integration.
An estimated 40,000 Kenyans currently live and work in Tanzania, many of whom are involved in the informal business sector.
The new rules are expected to affect their livelihoods and could strain relations between the two countries.
Other EAC member states, including Rwanda, Burundi, South Sudan, Somalia, and the Democratic Republic of Congo, may also see their nationals impacted by the policy.
There are growing concerns that Tanzania’s actions could lead to retaliatory measures from neighbouring countries, potentially threatening the spirit of regional cooperation.
This crackdown on foreign participation in small-scale economic activities is part of a broader shift towards nationalist economic policies under President Samia Suluhu Hassan.
In May, the country banned the use of foreign currencies such as the US dollar for domestic transactions, requiring all payments for goods and services within Tanzania to be made exclusively in Tanzanian Shillings (TZS).
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Image Credit: Tanzania Multimedia Lab
