In a significant policy shift aimed at boosting local participation in the economy, the Tanzanian government has issued a directive that prohibits non-citizens from engaging in 15 specific business activities.
The directive, officially titled the Business Licensing (Prohibition of Business Activities for Non-Citizens) Order 2025, was signed by the Minister for Industry and Trade, Selemani Saidi Jafo, and took immediate effect on July 25, 2025.
The newly restricted business activities are those that the government believes are best suited for Tanzanian citizens, particularly those with limited capital who rely on small-scale entrepreneurship for survival.
These business category activities include retail and wholesale trade excluding supermarkets, specialized product outlets, and wholesale centers for local producers mobile money transfers, and the repair of mobile phones and electronic devices.
Also included in the list are salon businesses unless operated in hotels or tourism contexts, cleaning services for homes and offices, small-scale mining, and postal or parcel delivery services within the country.
Further restrictions apply to tour guiding services, the establishment and operation of radio and television stations, museums and curio shops, and brokerage or agency work in business and real estate.
Clearing and forwarding services, on-farm crop purchasing, the operation of gambling machines outside casino premises, and ownership or operation of micro and small-scale industries are also included in the list.
These sectors are now fully reserved for Tanzanians, and any non-citizen currently engaged in them risks losing their licenses or being denied renewal.
The immediate implementation of the directive leaves little room for adjustment by affected non-citizens. Many foreign nationals particularly those from neighboring East African countries have set up small businesses in Tanzania over the years, taking advantage of open markets and regional integration policies.
With the new restrictions in place, they now face an uncertain future, especially those engaged in low-capital businesses that fall under the banned categories.
The government’s justification for this move is rooted in the need to empower its citizens economically.
Many of the newly restricted sectors are dominated by Tanzanians, especially youth and women, who rely on them for daily income.
The foreign involvement in these sectors has led to unfair competition, often driving locals out of business.
By reserving these activities for nationals, the government hopes to protect livelihoods, promote self-employment, and ensure that profits remain within the local economy.
This directive is also seen as part of a broader national strategy to encourage economic self-reliance and reduce dependency on foreign players in grassroots economic spaces.
Sectors like tour guiding and curio shops, for instance, are closely tied to Tanzanian culture and heritage, and the government believes that locals are better placed to represent and benefit from this part of the economy.
However, the directive has raised concerns among regional investors and non-citizens who had made Tanzania their home and invested in small businesses.
Some fear that this move could signal a less welcoming environment for foreign entrepreneurs and create barriers to cross-border economic cooperation within the East African Community.
There is also unease about how the directive will be enforced and whether it may lead to a rise in informal or proxy business ownership to bypass restrictions.
There is worry that such protectionist measures, while well-intentioned, may discourage foreign investment and limit innovation in the long run.
Nonetheless, for Tanzanians, this directive could present new opportunities to reclaim space in the local economy and grow their businesses without the pressure of external competition.
It remains to be seen how the transition will unfold and whether the policy will truly uplift local entrepreneurship as intended.
For non-citizens, especially those in low-margin trades, the message is clear: the business landscape in Tanzania is shifting, and adapting quickly may be the only way forward.
