The Government of Tanzania has approved new regulations limiting the conduct of certain economic activities exclusively to Tanzanian citizens. The measure, promoted by the Ministry of Industry and Trade, was formalized through the Trading Licences (Prohibition of Business Activities for Non-Citizens) Order, 2025, published in Government Notice No. 487 on July 28, 2025.
This provision forms part of the reforms introduced by the Finance Act 2025, which authorizes the competent minister to define sectors or activities reserved for the local population, with the objective of strengthening national participation in the domestic economy.
Definition of “non-citizen”
For legal purposes, the Order defines a “non-citizen” as any person who does not meet the citizenship criteria set out in the Tanzanian Citizenship Act (Cap. 357).
That law recognizes three ways to acquire Tanzanian nationality:
- By birth, when at least one parent is Tanzanian.
- By descent, if one of the parents was a citizen at the time of birth.
- By naturalization, through an application and official approval from the Ministry of Home Affairs.
Anyone who does not fall under these categories is considered a foreigner for the purposes of the new regulation.
Activities reserved for Tanzanians
The Order prohibits foreign nationals from engaging in a wide range of activities, including:
- Retail and wholesale trade (except for supermarkets and specialized stores).
- Mobile money transfer services.
- Repair of phones and electronic devices.
- Hairdressing or beauty salons outside the tourism or hotel sectors.
- Cleaning of homes, offices, and public spaces.
- Small-scale mining.
- Postal and domestic courier services.
- Tourist guide services within the country.
- Operation of radio or television stations.
- Management of museums or craft shops.
- Brokerage or intermediation in real estate or business transactions.
- Transport and customs clearance services.
- Purchase of crops directly from farms.
- Operation of gaming machines outside casinos.
- Ownership or operation of micro and small industries.
Licences and penalties
From the date the Order entered into force (July 28, 2025), authorities are prohibited from granting or renewing licences for foreign nationals to carry out these activities.
Violations will be subject to the following penalties:
- For non-citizens: a minimum fine of 10 million Tanzanian shillings (TZS), imprisonment of up to six months, and revocation of visa and residence permit.
- For citizens who assist or conceal prohibited activities: a fine of at least 5 million TZS or imprisonment of not less than three months.
A transitional period has also been established: foreigners who already hold a valid licence may continue operating until its expiry, but renewals will not be permitted.
Implications
This measure represents a significant shift in Tanzania’s economic policy, aimed at protecting local businesses and promoting national participation in sectors considered strategic.
Foreign companies operating in the country must review their current situation and, if necessary, adapt or restructure their activities before their licences expire.
Feliu N&I advises you
At Feliu N&I, we have a team specialized in internationalization and global mobility that can help you assess the impact of this measure, analyze legal and investment alternatives, and ensure that your company complies with current regulations in Tanzania and other international markets.
If you need guidance on visas, licences, or operating requirements in Africa, our team will assist you throughout the entire process.
