Tanzania Bars Foreigners from Dozens of Local Businesses to Safeguard Citizen Jobs
In a decisive policy shift aimed at protecting local enterprises, the Government of Tanzania has issued a sweeping directive barring foreigners from engaging in a wide range of small and medium-sized businesses. Officials say the move is intended to safeguard employment opportunities for Tanzanian citizens and strengthen domestic economic participation.
The directive, signed on July 25 by Minister of Industry and Trade, Selemani Saidi Jafo, outlines a detailed list of businesses now strictly reserved for Tanzanian nationals. These include:
- Mobile money operations
- Phone and electronics repair
- Personal grooming services (except in hotels or designated tourism zones)
- Home and office cleaning services
- Tour guiding and curio shops
- Parcel and local delivery services
- On-farm crop purchasing
- Small-scale mining
- Brokerage and real estate services
- Ownership or operation of radio and TV stations
- Clearing and forwarding
- Gambling machine operations outside licensed casinos
- Micro and small-scale industries
- General retail and wholesale trade (excluding supermarkets and specialized outlets)
“The business of sale of goods on a wholesale and retail basis, excluding supermarkets, specialised product outlets, and wholesale centres for local producers, is now strictly reserved for citizens,” Minister Jafo stated in the government’s release.
The directive did not specify how existing foreign operators in these sectors will be managed, but its tone suggests strict and immediate enforcement. This could potentially leave thousands of foreign-owned small businesses seeking alternatives or facing closure.
The government argues that the restrictions will reduce exploitation in low-capital sectors and allow Tanzanians to thrive in local markets without being undercut by foreign competitors.
This move aligns Tanzania with similar policies in neighboring countries. In Uganda (UG), foreign investors are required to inject at least USD 250,000 to operate, effectively locking them out of low-margin sectors. Rwanda also enforces citizen-only participation in areas such as local transport, retail, and personal services.
While officials emphasize that the directive is a pro-citizen empowerment strategy, analysts warn that it could create friction in regional trade integration and foreign investment relations.
The Urban Gazette — Your Online Publication for Local and International News and Advertising Platform.
