On 28 July 2025, the Government of the United Republic of Tanzania published Government Notice No. 487A of 2025 – The Business Licensing (Prohibition of Business Activities for Non-Citizens) Order, 2025, (Order). The Order introduces a prohibition on non-citizens from engaging in 15 specified business activities across various sectors of the Tanzanian economy.
Scope and prohibited activities
The Order defines a ‘non-citizen’ by reference to the Tanzania Citizenship Act [Cap. 357 RE 2023], and expressly bars non-citizens from obtaining or renewing business licences for the following activities:
- The business of sale of goods on a wholesale and retail basis excluding supermarkets, specialised product outlets, and wholesale centres for local producers
- Mobile money transfers
- Repair of mobile phones and electronic devices
- Salon business unless the business is conducted in a hotel or for tourism purposes
- Home, office and environmental cleanliness
- Small-scale mining
- Postal activities and parcel delivery within the country
- Tour guiding within the country
- Establishment and operation of radio and television
- Operation of museums or curio shops
- Brokerage or agency in businesses and real estate
- Clearing and forwarding services
- On-farm crop purchasing operations
- Ownership or operation of gambling machines or devices, except within casino premises
-
Ownership and operation of micro and small industries.
Penalties and transitional provisions
The Order provides for stringent penalties in the event of non-compliance. Non-citizens engaging in any prohibited activity can be subjected to a fine of not less than TZS 10 million, imprisonment for a term not exceeding six months, and the revocation of their visa and residence permits.
Tanzanian citizens who assist or aid non-citizens to undertake such activities also face a penalty, of up to TZS 5 million, or three-months’ imprisonment.
Notably, a transitional provision allows non-citizens already operating under valid licences in the affected sectors to continue operating only until the licences expire. No renewal will be permitted thereafter.
Also Read: Kenya Warns Tanzania After Ban on Foreigners Operating Small Businesses
Next steps
We recommend that businesses with foreign ownership structures assess their exposure under the order and seek legal advice.
For existing operators in the affected sectors, it is essential to confirm their licence expiry dates and begin planning for transition or restructuring as appropriate.
It is also expected that the Government will, in due course, issue clarificatory guidelines or implementing regulations to mitigate interpretative challenges and provide a coherent framework for enforcement.
This expert opinion was written by Michael Strain, Managing Partner and MohammedZameen Nazarali, Associate, Bowmans Tanzania.
Follow our WhatsApp Channel and X Account for real-time news updates.
