Tanzania Bans Foreigners from Operating in Key Small and Medium-Sized Business Sectors

Tanzania has imposed a ban on non-citizens operating in several small and medium-sized business sectors, including retail and mobile money services, to prioritise local entrepreneurs and boost citizen participation in the economy.

The Tanzanian government has announced a sweeping ban on non-citizens operating in a number of small and medium-sized business sectors, in a move aimed at bolstering local entrepreneurship and increasing citizen participation in the economy.

Trade Minister Selemani Saidi Jafo unveiled the directive on Tuesday, specifying that the ban will affect sectors including retail trade, mobile money services, phone repairs, salon operations, and cleaning services. The policy, however, exempts supermarkets and tourism-related businesses, allowing foreigners to continue their activities in those areas.

Minister Jafo emphasised that the decision was designed to prioritise Tanzanian citizens in sectors traditionally dominated by local entrepreneurs. “This measure is part of our broader effort to empower Tanzanian citizens economically and to ensure they benefit from the opportunities within their own country,” he said.

The directive has raised questions regarding the status of existing foreign-owned businesses within the affected sectors, with authorities yet to clarify whether a grace period will be offered or if foreign operators must cease their activities immediately.

The announcement has elicited mixed reactions from business communities and international observers. Supporters argue that the policy will foster local economic growth and reduce unemployment among Tanzanians, while critics warn it may deter foreign investment and complicate business operations.

This latest move fits within Tanzania’s broader economic agenda, which has increasingly focused on localisation policies aimed at reducing foreign dominance in certain sectors and promoting indigenous entrepreneurship.

As the government prepares to implement the ban, stakeholders await further details and guidelines to understand its full impact on the country’s dynamic business landscape.