TANZANIA BANS FOREIGNERS FROM 15 SMALL BUSINESS SECTORS TO PROTECT LOCAL ENTREPRENEURS

Minister for Industry and Trade, Dr. Selemani Jafo.

DAR ES SALAAM, TANZANIA – July 30, 2025: The Government of Tanzania has officially banned non-citizens from engaging in 15 types of small-scale business activities. This move follows increasing public concern over the growing presence of foreign traders, particularly in urban markets like Kariakoo.

The ban, aimed at safeguarding opportunities for local entrepreneurs and preserving fair competition, was formalised through Government Notice No. 487A, published on July 28, 2025, under the Business Licensing Act (Cap 101).

“This Order may be cited as the Business Licensing (Prohibition of Business Activities for Non-Citizens) Order, 2025. In this Order, unless the context otherwise requires, ‘non-citizen’ has the meaning ascribed to it under the Tanzania Citizenship Act.

The business activities specified in the Schedule to this Order shall not be carried out by non-citizens,” the order states.

List of Prohibited Activities for Foreigners

Under the new Order, non-citizens are now prohibited from engaging in the following business activities:

1. General wholesale and retail trade (excluding supermarkets and specialty stores)
2. Mobile money transfer services
3. Mobile phone and electronics repair
4. Salon services (excluding those targeting the tourism sector)
5. Home and office cleaning
6. Small-scale mining
7. Domestic parcel and postal delivery services
8. Tour guiding
9. Operating radio and TV stations
10. Running museums and curio shops
11. Brokerage in business and real estate
12. Clearing and forwarding services
13. Crop buying at farms
14. Operating gambling machines outside licensed casinos
15. Owning or running micro and small industries

Penalties for Violators

The Order imposes strict penalties on violators:

• Non-citizens found engaging in the banned sectors face a minimum fine of TZS 10 million, up to six months’ imprisonment, and revocation of visa or residence permit.
• Tanzanians who aid or facilitate foreigners in these activities may be fined TZS 5 million or face up to three months’ imprisonment.

Rationale Behind the Ban

According to the government, the restrictions are intended to:

• Protect local entrepreneurs from unfair competition
• Promote employment for Tanzanian citizens
• Formalize the informal sector
• Improve tax revenue collection
• Curb illegal and unregulated business activities

Context: The Kariakoo Findings

The move follows growing tensions in Kariakoo, Dar es Salaam’s commercial hub, where local traders have repeatedly accused foreign nationals—particularly Chinese traders—of operating in sectors legally reserved for Tanzanians.

To address these concerns, Minister for Industry and Trade, Dr. Selemani Jafo, commissioned a 15-member task force led by Professor Edda Lwoga. The task force found widespread violations, including:

• Foreigners operating under Tanzanian names or using manipulated business licenses
• 148 out of 152 workers in the 75 businesses inspected were involved in retail—an area strictly reserved for Tanzanians
• Landlords accepting bribes (locally known as kutoa kilemba) to rent shops to foreign nationals
• Sale of counterfeit products and operations without valid business licenses

Enforcement Measures Underway

In response, Minister Jafo launched a nationwide enforcement operation. A special task force made up of officers from the Immigration Department, Police, Fair Competition Commission (FCC), Tanzania Revenue Authority (TRA), and Tanzania Bureau of Standards (TBS) was deployed to crack down on illegal foreign trading.

As of now:

• Over 100 business premises have been reviewed
• More than 183 individuals were flagged for violations
• Several foreign traders are facing deportation

Foreigners already holding valid business licenses in the restricted categories may continue operations only until their licenses expire—renewals will not be allowed.

---

Source: Daily News

---