15 Businesses Foreigners Cannot Operate in Tanzania

The government of Tanzania has issued a bold directive banning foreign nationals from owning or operating 15 specific types of small and medium-sized businesses. The new order is part of a broader effort to safeguard opportunities for Tanzanian citizens and strengthen local enterprise.

The restrictions are contained in Government Notice No. 487A under the Business Licensing (Prohibition of Business Activities for Non-Citizens) Order, 2025. Under this regulation, authorities will not issue or renew business licenses for foreigners operating in the listed sectors. Those currently licensed will be allowed to operate only until their permits expire.

The Prohibited Sectors

The following businesses are now strictly reserved for Tanzanian citizens:

1. Retail and Wholesale Trade
   Foreigners can no longer own or operate general retail shops, kiosks, or small wholesale outlets. However, supermarkets, specialized product stores, and large wholesale centres that serve local producers are exempt.
2. Mobile Money Transfer Services
   All businesses offering mobile money transfer services are now exclusively for Tanzanians.
3. Phone and Electronic Repairs
   Repair shops dealing with mobile phones and electronic devices must be locally owned.
4. Salons and Barbershops
   Barbershops and beauty salons are now closed off to foreigners, unless they operate within tourist-class hotels or resorts.
5. Cleaning Services
   All general cleaning services, including residential and commercial cleaning, are restricted to citizens.
6. Small-Scale Mining
   The mining of minerals on a small scale is now a preserve for Tanzanians only.
7. Postal and Courier Services
   Domestic parcel delivery and postal services can no longer be operated by foreign nationals.
8. Tour Guiding Services
   Only Tanzanian citizens will be allowed to offer professional tour guiding services across the country.
9. Radio and Television Stations
   The establishment and operation of broadcasting services is now reserved for local ownership.
10. Museums and Curio Shops
    Foreigners are not permitted to run museums or shops dealing in cultural artifacts and curios.
11. Real Estate and Business Brokerage
    Non-citizens cannot act as agents or brokers in real estate or general business transactions.
12. Clearing and Forwarding Services
    The clearance and forwarding of goods at ports and border points is now restricted to locals.
13. On-Farm Crop Purchasing
    Foreign traders are banned from buying produce directly from farmers, a practice previously common in rural areas.
14. Gambling and Gaming Machines
    Foreigners are no longer allowed to operate gaming machines or sports betting kiosks.
15. Micro and Small-Scale Industries
    Ownership and management of small manufacturing enterprises has been restricted to Tanzanian citizens.

Penalties and Enforcement

Violations of the new order attract hefty penalties. Foreigners found operating banned businesses face fines of up to 10 million Tanzanian shillings (about Ksh 500,000), a jail term of up to six months, or both. Tanzanian citizens who knowingly assist foreigners in operating these businesses also face a fine of up to 5 million shillings or three months’ imprisonment.

Economic Nationalism or Protectionism?

Tanzania joins a growing list of African countries enforcing strict local ownership policies in the informal and SME sectors. Government officials defend the move as a necessary step to protect Tanzanian entrepreneurs from unfair competition and economic displacement, particularly in densely populated trading hubs like Kariakoo in Dar es Salaam.

However, the decision has sparked regional concern, especially among neighbouring East African Community (EAC) member states. Kenyan traders, who form a significant portion of foreign small business owners in Tanzania, may be among the most affected. Business associations have called for dialogue between Nairobi and Dodoma to prevent escalating trade tensions.

Balancing Growth and Inclusion

While the government insists that the move is intended to empower local businesses, critics argue it may hurt investor confidence and threaten the spirit of regional integration. Others warn that without adequate support and capacity building for local entrepreneurs, the vacuum left by exiting foreigners could lead to supply chain disruptions and job losses.

Nevertheless, for many Tanzanians, the new directive is a long-awaited policy shift that puts them first in the fight for economic survival and national prosperity.