In a bold move to ring-fence local enterprise, Tanzania has officially barred foreigners from operating in a wide array of small and medium-sized businesses—signaling a dramatic shift toward economic protectionism.
The directive, signed on July 25 by Minister of Industry and Trade Selemani Saidi Jafo, identifies dozens of sectors now strictly reserved for Tanzanian citizens. These include mobile money services, electronics repair, hairdressing, parcel delivery, crop buying, small-scale mining, retail trade, and more.
“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 official announcement.
Foreigners are also barred from owning or operating radio and TV stations, real estate agencies, and gambling machines outside licensed casinos.
Personal care services, such as salons and spas, will only be permitted for foreign operators in hotels and tourism-designated zones.
Although the directive doesn’t spell out how current foreign-run businesses will be phased out, the language suggests immediate enforcement leaving thousands of non-citizen operators facing shutdown or forced exit.
Government officials argue the new policy is designed to create space for Tanzanians to thrive, especially in high-competition, low-capital sectors where foreign players often dominate due to deeper pockets.
The move mirrors rising protectionist sentiment across East Africa. Uganda mandates a $250,000 minimum investment for foreign business entrants, effectively walling off petty trade. Rwanda has its own citizen-only list covering areas like public transport and general retail.
However, critics warn that while the policy may boost local participation in the short term, it risks unsettling foreign investors and undermining Tanzania’s standing in regional trade blocs like the East African Community.
