Tanzania has blocked foreigners from operating in small business sectors, effective July 28, 2025.
The government of Tanzania announced that the move is to reserve local markets for citizens.
Signed by Tanzania’s Minister of Industry and Trade Selemani Saidi Jafo, the policy under the Business Licensing (Prohibition of Business Activities for Non-Citizens) Order, 2025, targets sectors like retail, mobile money services, and tour guiding.
Jafo, in a press release, said the policy is aimed at boosting Tanzanian entrepreneurship.
Under the directive, foreigners are prohibited from participating in 15 specific business sectors considered critical to grassroots economic empowerment.
Among the prohibited activities for non-citizens are:
• Operating salons, small retail shops, eateries, and mobile money transfer kiosks
• Running mobile phone repair businesses
• Providing tourism-related services such as tour guiding
• Offering domestic, office, and environmental cleaning services
• Engaging in small-scale mining and local parcel/postal delivery
• Operating curio shops, museums, radio and TV stations
• Acting as brokers or agents in real estate or business transactions
• Participating in clearing and forwarding services
• Buying crops directly from farms
• Running gambling operations outside licensed casinos
• Owning or managing micro and small industries
According to the new policy, any foreigner who violates the new law risks fines of up to Tsh10 million ($3,898), imprisonment of up to six months, or both, for violators.
Additionally, foreign offenders may have their residence permits and visas revoked. Tanzanian citizens who assist non-citizens in these restricted activities also face penalties, including a Tsh5 million fine ($1,949) or up to three months in jail.
Kenya has already criticized the move, arguing that Tanzania blocked foreigners in defiance of the East African Community (EAC) Common Market Protocol, which supports free movement of services and labor.
Kenyan Trade Minister Lee Kinyanjui warned of potential reciprocal restrictions, which could escalate tensions.
“It is therefore critical, in the spirit of EAC, that bilateral engagements be held to resolve these issues,” Kinyanjui wrote in a statement on Wednesday.
“Many Tanzanians are working in our mining sites too.
“It is clear that Tanzanians have gone too far and we should cut links with them,” the statement added.
