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New restrictions on business activities for non-citizens in Tanzania

On July 28, 2025, the Government of Tanzania issued Government Notice No. 487A of 2025, introducing the Business Licensing (Prohibition of Business Activities for Non-Citizens) Order, 2025 (the Order) under the Business Licensing Act, Cap. 101. This Order marks a significant regulatory shift aimed at protecting local enterprise and enhancing citizen participation in key sectors of the economy.

Scope and purpose

The Order prohibits non-citizens from engaging in a list of 15 specified business activities. It also restricts licensing authorities from issuing or renewing business licenses for non-citizens in these sectors. The definition of “non-citizen” aligns with the Tanzania Citizenship Act, Cap. 357.

Prohibited business activities

Non-citizens are barred from engaging in the following:

  1. Retail and wholesale trade (excluding supermarkets, specialized outlets, and wholesale centers for local producers)
  2. Mobile money transfers
  3. Repair of mobile phones and electronic devices
  4. Salon services (except in hotels or for tourism)
  5. Cleaning services (home, office, environmental)
  6. Small-scale mining
  7. Domestic postal and parcel delivery
  8. Tour guiding within Tanzania
  9. Establishment and operation of radio and television stations
  10. Operation of museums or curio shops
  11. Business and real estate brokerage
  12. Clearing and forwarding services
  13. On-farm crop purchasing
  14. Gambling machine operations (outside casinos)
  15. Ownership and operation of micro and small industries

Penalties for non-compliance

Non-citizens found operating in prohibited sectors face:

  • A fine of not less than TZS10 million
  • Imprisonment of up to six months
  • Revocation of visa and residence permit Tanzanian citizens who assist non-citizens in these activities may face:
  • A fine of TZS5 million
  • Imprisonment of up to three months

Transition period

Non-citizens currently holding valid licenses for any of the listed activities may continue operations until the license expires, after which renewal will not be permitted.

Legal insight

This Order reflects the government’s strategic intent to empower local entrepreneurs and protect small-scale economic activities from foreign dominance. Businesses and investors are advised to review their compliance status and seek legal guidance where necessary.

For further legal assistance, please contact our team at [email protected]