By Patrice Katuma
DAR ES SALAAM, TANZANIA – The Tanzanian government has enacted a stringent new directive that immediately bars non-citizens, including Nigerian and other African nationals, from operating in 15 specific business sectors. The decisive move, signed into law on July 25, 2025, under the Business Licensing (Prohibition of Business Activities for Non-Citizens Order), is set to significantly reshape the landscape for foreign-owned Micro, Small, and Medium Enterprises (MSMEs) across the nation.
The policy was officially unveiled on Monday by the Minister for Industry and Trade, Selemani Saidi Jafo, who signed the 2025 Order. Under the new regulations, licensing authorities are now explicitly prohibited from issuing or renewing business licenses to foreigners seeking to engage in the restricted activities.
“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 stated in its announcement.
Sectors Now Closed to Foreigners Include:
The directive encompasses a wide range of services and trades, primarily targeting small and domestic-focused industries:
- Retail and wholesale trade (excluding supermarkets and specialised outlets)
- Mobile phone repairs
- Mobile money transfer services
- Tour guiding
- Salons (outside hotels)
- Business consulting services
- Small-scale mining
- On-farm crop purchasing
- Home and office cleaning services
- Ownership and operation of micro and small-scale industries
- Real estate brokerage
- Business brokerage
- Operation of gambling machines outside licensed casinos
The Tanzanian government stated that the decision was prompted by increasing public concerns, particularly in bustling urban commercial zones like Dar es Salaam’s Kariakoo Market, where foreign traders, prominently from China, have faced accusations of displacing local businesses.
“This order is a deliberate step to ensure that sectors traditionally accessible to locals remain preserved for Tanzanians. It reflects the government’s broader commitment to economic inclusion and employment for citizens,” Minister Jafo affirmed.
Tanzania now joins a growing list of African nations, including Ghana, Nigeria, Zimbabwe, South Africa, Eswatini (Swaziland), Zambia, and Botswana, that have implemented protectionist policies to ring-fence certain economic sectors exclusively for their citizens.
While local business groups have largely lauded the move as a long-overdue intervention to empower Tanzanian entrepreneurs, international observers caution that such protectionist measures could potentially impact foreign investment, strain trade relations, and affect diplomatic ties.
As of now, the Tanzanian Ministry of Industry and Trade has not disclosed whether any transitional arrangements or exemptions will be granted to foreigners already operating in the newly restricted sectors. The order, effective July 25, 2025, marks a significant new phase in Tanzania’s domestic economic policy landscape.
