In a bid to protect its domestic market and support indigenous entrepreneurs, Tanzania has officially prohibited foreigners from participating in 15 categories of small-scale businesses, including general retail, mobile money services, and salon operations. The directive, issued under the Business Licensing Act and published on Monday, July 28, seeks to formalize informal trade and curb practices deemed harmful to local enterprises.
The regulation outlines strict penalties for violators, including substantial fines, visa revocations, and possible imprisonment. Tanzanian citizens who aid or collaborate with foreigners to bypass these restrictions also risk facing legal consequences.
The enforcement action comes amid escalating concerns in the Kariakoo market area of Dar es Salaam, where authorities uncovered widespread misuse of trading licenses. According to government findings, numerous foreign nationals—primarily from China—were conducting business using forged documents or leasing retail spaces through unauthorized channels.
Officials argue these activities have undercut Tanzanian-owned businesses and facilitated the distribution of counterfeit products in the local market.
“The illegal operations have harmed Tanzanian-owned businesses and promoted the sale of counterfeit goods,”
the report noted.
To address the situation, a national task force has been mobilized to audit business licenses and close non-compliant operations. Existing foreign business owners engaged in the banned sectors will be allowed to continue only until their current licenses expire, after which renewal will be denied under the new policy.
