Tanzania bans foreigners from running small businesses

July 30, 2025

Tanzania has introduced a new regulation banning foreigners from engaging in several small-scale business activities.

The government says the move is aimed at protecting grassroots economic interests and prioritizing opportunities for local citizens.

The directive, known as the Business Licensing (Prohibition of Business Activities for Non-Citizens) Order, 2025, was issued on July 28, 2025, under Government Notice No. 487A and signed by Dr. Selemani Jafo, Minister for Industry and Trade.

Foreigners are now prohibited from:

operating salons
running small retail shops
managing eateries
operating mobile money kiosks
repairing mobile phones
offering tour guiding services
providing domestic cleaning services
providing office cleaning services
providing environmental cleaning services
engaging in small-scale mining
running parcel and postal delivery services
operating curio shops
managing museums
running radio stations
running TV stations
acting as brokers or agents in real estate or business
offering clearing and forwarding services
buying crops directly from farms
running gambling businesses outside licensed casinos
owning or managing micro and small industries

Violators face fines of up to Tsh10 million ($3,898), six months in prison, or both. Foreigners may also have their visas and residence permits revoked.

Tanzanians who help foreigners engage in these restricted sectors could also be penalized, with a fine of Tsh5 million ($1,949) or up to three months in jail.

While the government insists the goal is to empower its citizens, the decision has raised concerns within the East African Community (EAC).

Some fear it could act as a non-tariff barrier and damage regional trade relations.

With over 40,000 Kenyans living and working in Tanzania—many in informal businesses—the new restrictions are expected to disrupt livelihoods and strain diplomatic ties.

Other EAC countries such as Rwanda, Burundi, South Sudan, Somalia, and the Democratic Republic of Congo may also be affected.

Analysts warn that retaliatory policies could follow, threatening regional cooperation.

This development is part of a wider shift under President Samia Suluhu Hassan.

In May 2025, Tanzania banned the use of foreign currencies like the US dollar for local transactions, requiring all payments to be made in Tanzanian Shillings (TZS).

(Business Insider)