Dar es Salaam — The Tanzanian government has announced a sweeping directive that bars foreign nationals from participating in 15 categories of small business activities, reinforcing efforts to safeguard economic opportunities for its citizens.
The new directive, officially titled The Business Licensing (Prohibition of Business Activities for Non-Citizens) Order, 2025, was signed by Minister of Industry and Trade Selemani Jafo and takes effect immediately.
The order prohibits non-citizens from engaging in a range of sectors traditionally reserved for Tanzanian nationals. These include:
- Wholesale and retail trade (excluding supermarkets and specialized outlets)
- Small-scale mining
- Mobile money transfer services
- Ownership and operation of radio and television stations
- Operation of gambling machines outside of casinos
- Tour guiding
- Real estate brokering
- Clearing and forwarding services
Licensing authorities have been instructed not to issue or renew business licenses for foreigners intending to operate in any of the prohibited sectors.
“Upon coming into effect of this order, licensing authorities shall not issue or renew a licence for a non-citizen to carry out any of the business activities prohibited under this order,” the Ministry of Industry and Trade stated.
The government’s move follows growing public frustration over the visible presence of foreign nationals particularly from countries such as China in low-tier retail and informal trade, especially in busy commercial hubs like Kariakoo market in Dar es Salaam. Local traders have long argued that such spaces should be preserved for Tanzanian entrepreneurs.
Tanzania now joins a growing list of African countries including South Africa, Ghana, Nigeria, Zimbabwe, Swaziland, Zambia, and Botswana that have introduced protectionist regulations to shield certain segments of their economies from foreign competition.
Mixed Reactions from Analysts and Business Community
Analysts say the directive is likely to yield mixed outcomes.
Supporters argue it could open up more economic space for local traders and small businesses, reduce unfair competition, and strengthen the domestic market. They view it as a necessary intervention to empower Tanzanians amid rising unemployment and economic inequality.
However, critics warn that the directive could send negative signals to the broader investment community, particularly smaller-scale and informal foreign investors who may feel targeted or marginalized. There are concerns that the new restrictions might dampen investor confidence and affect Tanzania’s image as a welcoming destination for foreign capital.
As the East African Community (EAC) continues to push for greater regional economic integration, the move could also stir debate within the bloc, where member states have committed to principles of free movement of labor, goods, and services.
It remains to be seen how the new policy will be implemented and what measures the government may introduce to balance citizen empowerment with foreign investment interests.