Tanzanian President Samia Suluhu Hassan - Courtesy

Dar es Salaam, Tanzania (Eye Radio) – Tanzania has issued a sweeping directive barring foreign nationals from operating in various small business sectors, a measure designed to bolster and protect its domestic entrepreneurial landscape.

According to media reports, the directive is to reserve a range of small business activities exclusively for its citizens, in a move aimed at safeguarding national entrepreneurs. 

In a directive dated July 25, 2-25, officially titled “The Business Licensing (Prohibition of Business Activities for Non-Citizens) Order, 2025,” was signed and released by Minister of Industry and Trade Selemani Jafo, taking immediate effect. 

What Businesses Are Now Restricted?

The new regulation prohibits non-citizens from operating in at least 15 categories of business activities. These include:

• Wholesale and retail trade (with exceptions for supermarkets and specialized product outlets).
• Small-scale mining.
• Mobile money transfer services.
• Ownership and operation of radio and television stations.
• Operation of gambling machines outside of licensed casinos.
• Tour guiding services.
• Real estate brokering.
• Clearing and forwarding services.

Licensing authorities across the country have received clear instructions not to issue or renew licenses for foreigners intending to operate in these newly prohibited sectors. 

Why the New Directive?

This move comes in response to growing public concern within Tanzania. Many citizens, particularly local entrepreneurs, have expressed worries that foreign nationals – notably from countries like China – have increasingly engaged in small-scale and retail businesses.

These concerns were particularly pronounced in high-density trading zones, such as Dar es Salaam’s bustling Kariakako market, areas that locals believe should be exclusively preserved for Tanzanian entrepreneurs.  

A Regional Trend

Tanzania’s decision aligns with a growing trend across the African continent. It now joins several other nations, including South Africa, Ghana, Zimbabwe, Nigeria, Eswatini (formerly Swaziland), Zambia, and Botswana, which have implemented similar protectionist measures.

These policies are designed to ring-fence specific business spaces and economic opportunities for their citizens.

Potential Outcomes

Analysts suggest that this directive could lead to a mix of economic outcomes. While the primary aim is to foster a more enabling environment for Tanzanian citizens to thrive economically and enhance their participation in key sectors, critics have voiced concerns.

They warn that the directive could potentially dampen foreign investor confidence, particularly among smaller-scale and informal investors who are already operating within the country.

The long-term impact on foreign direct investment and local economic growth will be closely watched.