The government of Tanzania has announced a new policy banning foreign nationals from operating small-scale businesses in the country. The move is part of an effort to protect local entrepreneurs and create more opportunities for Tanzanian citizens.
The list of businesses now reserved for Tanzanians only includes:
Retail trade (such as small shops and kiosks)
Food vending and restaurant services
Tour guiding
Small-scale mining
Real estate brokerage and business agency services
Postal and parcel delivery services within the country
Operation of museums and curio shops
Radio and TV station ownership and operation
On-farm crop buying
Ownership of gambling machines (outside casinos)
Ownership and running of micro and small-scale industries
Clearing and forwarding services
According to the government, this decision is intended to:
Support Tanzanian entrepreneurs who already dominate these sectors
Reduce direct competition from foreign nationals in low-capital businesses
Encourage foreign investors to focus on larger-scale or capital-intensive ventures
“We want to empower our people economically,” said a senior official from the Ministry of Investment, Industry and Trade. “Tanzanians must take the lead in sectors they can manage and grow.”
The directive is part of a broader national economic strategy aimed at strengthening citizen participation and protecting local jobs.
What Happens to Foreigners Already in These Businesses?
The government has not yet confirmed whether foreign business operators already active in these sectors will be given a grace period or forced to exit immediately. This uncertainty has raised concern among many small-scale foreign traders, especially those working in informal markets and low-capital sectors.
Tanzania’s decision follows similar protectionist measures in other East African countries:
In Uganda, foreigners must invest at least \$250,000 to register a business, effectively locking them out of low-capital activities like small shops, salons, and food stalls.
Rwanda has a list of reserved sectors including transport and retail trade, where only citizens can operate. Authorities there strictly enforce the law.
These measures reflect a regional trend aimed at ensuring citizens benefit more directly from their local economies.
Impact on Foreign Traders
The new rules are expected to disrupt many small businesses run by foreign nationals, particularly in urban centers like Dar es Salaam, Arusha, and Mwanza, where informal trade is common. Many of these traders are from neighboring countries such as Kenya, Burundi, and the Democratic Republic of Congo.
Some foreign business owners have expressed concern about losing their livelihoods, especially if they are given no time to transition or relocate their businesses.
What’s Next?
Tanzanian authorities are expected to issue detailed guidelines soon, possibly clarifying:
How long current foreign business operators have to comply
Which sectors are fully restricted versus those requiring joint ventures or partnerships
Whether exceptions will be made for long-term residents or naturalized citizens
Tanzania’s new policy marks a major shift in how the country manages foreign participation in its economy. While it aims to boost local business ownership, it also raises questions about regional integration, investor confidence, and fairness for existing foreign-owned enterprises.
As implementation unfolds, both foreign and local stakeholders will be watching closely.
