Tanzania’s Bold Move: New Restrictions on Foreign Business Operations

Recently, Tanzania has implemented significant restrictions aimed at foreign nationals participating in various small business sectors. This change, which seems poised to reshape the economic landscape, is primarily designed to protect local entrepreneurs and ensure that ordinary Tanzanians have the opportunity to thrive in their own economy. Have you ever pondered how such government measures can strike a balance between encouraging foreign investment and supporting local citizens?

The regulation, formally titled the Business Licensing (Prohibition of Business Activities for Non-Citizens) Order, 2025, was officially released on July 28, 2025. This decree bears the signature of Dr. Selemani Jafo, the Minister for Industry and Trade, highlighting the government’s commitment to fostering local ownership in economic activities. As with any sweeping policy change, its implications are both vast and profound.

Under this new directive, foreigners are forbidden from engaging in 15 specific business sectors considered essential for grassroots economic progress. The government views these sectors as foundations for local job creation and income generation. This raises an intriguing question: What happens to a community when the economic control shifts into local hands?

Prohibited Activities for Non-Citizens

• 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

The implications of these restrictions are profound. Violators now face hefty fines of up to Tsh10 million (approximately $3,898) and potential imprisonment for up to six months. To make matters more stringent, foreign violators may have their residence permits and visas revoked. It’s also noteworthy that Tanzanian citizens who aid foreign nationals in these restricted activities can face substantial penalties themselves, including fines or imprisonment.

These changes are part of a wider push by the government to empower Tanzanians economically, yet they also create ripples of uncertainty across the East African Community (EAC). Critics often interpret such unilateral measures as non-tariff barriers, complicating regional trade and integration. Have you considered how interconnected our economies are and what this means for cross-border relationships?

With about 40,000 Kenyans residing in Tanzania, many of whom operate in the informal economy, one can only imagine how the new rules will impact their livelihoods. This inevitably puts a strain on bilateral relations. The larger question looms: Can economic nationalism coexist with the principles of regional cooperation?

Other neighboring countries, including Rwanda, Burundi, South Sudan, Somalia, and the Democratic Republic of Congo, may also see their nationals affected by this regulation. There are emerging fears that this move could incite retaliatory actions from those nations, potentially leading to a deterioration of regional cooperation and unity. Is this a realistic concern, or is it an overstated fear of the unknown?

This crackdown on foreign participation in small-scale economic activities is emblematic of a wider trend of nationalist policies emerging under President Samia Suluhu Hassan’s administration. For instance, earlier this year, Tanzania officially banned the use of foreign currencies for domestic transactions, mandating that all payments for goods and services be conducted exclusively in Tanzanian Shillings (TZS). This paints a picture of a country increasingly prioritizing local interests over foreign influences.

As we reflect on these developments, it begs the question of how a nation can forge its identity in a globalized world. Will this newly insular approach bolster local communities, or will it inadvertently isolate Tanzania from beneficial global partnerships? Only time will reveal the true effects of these regulations.

Through earnest dialogue and continued investment in home-grown enterprises, there is hope that Tanzania will navigate these waters successfully, fostering a thriving economy that serves the interests of its citizens. After all, the road to empowerment is never straightforward, but it is often filled with opportunities for growth and change.