•A local market in Dar es Salaam
The Tanzanian government has issued a new directive barring Nigerians, and other non-citizens, from participating in a wide range of small and medium-scale business activities across the country.
The move, announced yesterday, is aimed at protecting local entrepreneurs and addressing rising concerns over unemployment and market displacement, reports The Guardian.
The directive, known as the Business Licensing (Prohibition of Business Activities for Non-Citizens Order) 2025, was signed by the Minister for Industry and Trade, Selemani Saidi Jafo. It explicitly prohibits foreigners from operating in at least 15 sectors of the economy, ranging from retail trade and mobile money transfers to tour guiding and small-scale mining.
According to the order, licensing authorities are no longer permitted to issue or renew business licences to non-citizens seeking to operate within the restricted sectors.
“Upon coming into effect of this order, licensing authorities shall not issue or renew a licence for a non-citizen to carry out any of the business activities prohibited under this order,” the Ministry said in an official statement.
The restrictions affect businesses such as wholesale and retail (excluding supermarkets and specialised product outlets), repair of mobile phones, salons outside of hotels and tourism operations, home and office cleaning services, and on-farm crop purchasing. Other barred activities include ownership and operation of micro and small-scale industries, real estate and business brokerage, and operation of gambling machines outside casino premises.
The announcement follows growing complaints from Tanzanian citizens, particularly in urban commercial areas like Dar es Salaam’s Kariakoo market, where locals say foreign nationals—especially Chinese traders—are increasingly dominating retail trade traditionally reserved for locals.
The government also cited the need to ensure that native Tanzanians benefit more directly from economic opportunities. “This order is a deliberate step to ensure that sectors traditionally accessible to locals remain preserved for Tanzanians. It reflects the government’s broader commitment to economic inclusion and employment for citizens,” Minister Jafo added.
Tanzania now joins other African nations, including Ghana, Nigeria, Zimbabwe, South Africa, Swaziland, Zambia, and Botswana in taking legislative steps to ring-fence certain categories of economic activity for their citizens.
While the policy has been welcomed by local business associations, concerns remain among international observers about the potential impact on foreign investment, trade relations, and diplomatic ties.
The Ministry has yet to comment on whether any exemptions or transitional arrangements will apply for foreigners currently engaged in the affected sectors.
The order was dated July 25, 2025, and is expected to take immediate effect, signalling a new phase of economic nationalism in Tanzania’s domestic business environment.
