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The Government of Tanzania has rolled out a sweeping new order that prohibits non-citizens from owning and operating businesses across 15 specific sectors, including retail trade, mobile money services, and local tour guiding.
The directive, aimed at safeguarding opportunities for local entrepreneurs, imposes hefty fines and potential imprisonment for violators.
The new regulations are detailed in Government Notice No. 487A, titled the "Business Licensing (Prohibition of Business Activities for Non-Citizens) Order, 2023."
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Signed by the Minister for Industry and Trade, Selemani Saidi Jafo, on July 25, 2023, the order marks a significant policy shift to reserve certain segments of the economy exclusively for Tanzanian nationals.
According to the official document, the list of prohibited business activities for non-citizens includes:
The business of sale of goods in retail stores and total trade, excluding superstores, specialised product outlets, and wholesale centres for local producers
Mobile money transfers.
Repair of mobile phones and electronic devices.
Salon business, unless the business is conducted in a hotel or for tourism purposes.
Home, office and environmental cleanings.
Mobile food vendors.
Postal services and parcel delivery within the country.
Tour guiding within the country.
Repair and maintenance of radio and television.
Operation of motorcade or car hire services.
Brokerage of motor vehicles and real estate.
Operation of an advertising agency.
On-farm crop purchasing operations.
Provision of entertainment and gaming machines or devices, except within casino premises.
Ownership and operation of micro and small industries.
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The government has backed the prohibition with severe penalties to ensure compliance.
A non-citizen found operating a business in the restricted categories faces a fine of not less than $4,000, imprisonment for a term "not exceeding six months," and the revocation of their visa and resident permit.
Furthermore, the order extends penalties to Tanzanian citizens who enable foreign nationals to bypass the law.
Any citizen who "assists or aids" a non-citizen in carrying out these prohibited activities will be liable for a fine of not less than $2,000 or imprisonment for up to three months.
The move is widely seen as an effort to tackle competition in sectors dominated by small and medium-sized enterprises (SMEs) and to foster greater economic empowerment for Tanzanians.
By ring-fencing these specific commercial areas, the government aims to create a more favourable environment for local business growth.
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For foreign nationals already operating licensed businesses in the now-prohibited sectors, the order provides a transition period.
A clause states that a non-citizen holding a valid license "shall continue carrying out such activity up to such time when the licence expires."
This allows for a gradual phase-out rather than an immediate cessation of operations, providing a temporary reprieve for existing investors.