Tanzania Implements Sweeping Business Restrictions for Foreign Nationals
In a landmark economic policy shift, Tanzania has officially banned foreign nationals from participating in a wide range of small and medium-sized business activities. The government’s new directive aims to empower local entrepreneurs and protect national economic interests.
Announced through Government Notice No. 487A dated July 28, 2025, the Business Licensing (Prohibition of Business Activities for Non-Citizens) Order comprehensively restricts foreign involvement across multiple economic sectors.
Key Restrictions Include:
– Complete ban on general retail and wholesale trade
– Prohibition of mobile money transfer businesses
– Restrictions on mobile phone and electronic device repairs
– Limitations on hair and beauty salon operations
– Ban on domestic and office cleaning services
– Restrictions on small-scale mining
– Prohibition of postal and local delivery services
– Tour guiding limited to Tanzanian nationals
– Restrictions on media and tourism-related businesses
Enforcement mechanisms are strict, with potential penalties including:
– Fines up to 10 million Tanzanian shillings
– Imprisonment for up to six months
– Potential revocation of residence permits and visas
The policy provides a transition period for existing foreign-owned businesses, allowing them to operate until current licenses expire. This strategic move represents a significant restructuring of Tanzania’s economic landscape, prioritizing local business ownership and economic opportunities for citizens.
Experts suggest this policy will compel foreign investors to reevaluate their market strategies and engagement within Tanzania, marking a bold step in the country’s economic development approach.
