On 28 July 2025, the Minister for Industry and Trade issued the long-awaited Business Licensing (Prohibition of Business Activities for Non-Citizens) Order, G.N. No. 487A of 2025 to specify the types of business activities that cannot be conducted by non-citizens in Tanzania. The Order follows the amendments to the Business Licensing Act, Cap 101 R.E. 2023 by the Finance Act, Act No. 11 of 2025, which allowed the Minister to publish an order to specify business activities which shall not be carried out by non-citizens.
In terms of the Tanzania Citizenship Act, Cap 357 R.E. 2023, a non-citizen means a person who is not a citizen of the United Republic of Tanzania. It is important to note that it is not prohibited for foreigners to establish businesses in Tanzania – indeed, the government has encouraged foreign investors to invest in Tanzania. However, this Order has come as a result of the recent increase of complaints and discomfort by local business owners expressing their concerns about the influx of non-citizens engaging in small businesses and similar “local” wholesale and retail trade, resulting in unfair competition and loss to the local traders. It had been the case that non-citizens would establish their business in the same locality as local traders, such as the Kariakoo Market, and sell their products at lower prices, thereby undermining the presence of local traders.
These complaints pushed the President to form a ministerial committee to investigate the complaints and provide recommendations to address the challenges faced by local traders. The recommendations of the ministerial committee included specification of the types of businesses that should not be carried out by non-citizens. The types of prohibited businesses are listed in the Schedule to the Order.
As such, upon the coming into effect of this Order, licensing authorities (including BRELA and sector-specific regulatory authorities) are barred from issuing or renewing licences for non-citizens to carry out any of the prohibited business activities. In case a non-citizen contravenes the provisions of the Order, they will be liable upon conviction to penal sanctions together with the revocation of visas and resident permits. Should a Tanzanian citizen aid or assist a non-citizen to carry out the prohibited business activities, they will also be subjected to penal sanctions.
Notwithstanding the above, any non-citizen who currently possesses a valid licence in respect of any of the prohibited activities specified in the Schedule of the Order is allowed to continue carrying out such activity up to the expiry of the licence. Upon expiry of the licence, it will not be renewed.
With the repercussions of the Order, it is certain that legal advisers, consultants and foreign investors must be aware of acceptable business activities that can be established in Tanzania for the purposes of investment. The Order must be read together with sector-specific laws that regulate establishment and operation of various business activities, including compliance with local content requirements. This move by the government can be viewed as a necessary step towards protection and promotion of local businesses.
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