Tanzania has introduced a new policy barring foreign nationals from participating in 15 specific business sectors deemed vital for local economic development. The restricted areas include small-scale enterprises such as salons, retail shops, food outlets, and mobile money booths—sectors historically operated by Tanzanian citizens.
Foreigners found operating in these prohibited businesses risk severe consequences, including fines of up to 10 million Tanzanian shillings (about $3,900 USD), up to six months in jail, and potential revocation of their visas and residency permits. Tanzanians who aid foreigners in bypassing these restrictions could face penalties of up to 5 million shillings or three months’ imprisonment.
Government officials say the move is aimed at promoting employment and entrepreneurship among locals. However, the directive has sparked concerns within the East African Community (EAC), where some see it as a barrier to regional trade and integration.
The directive could particularly impact the estimated 40,000 Kenyans working in Tanzania, many of whom are engaged in informal or small-scale businesses. Other EAC members—Rwanda, Burundi, South Sudan, Somalia, and the Democratic Republic of Congo—could also feel the ripple effects.
Analysts warn the measure may lead to retaliatory policies from neighboring countries, potentially undermining regional cooperation.
This crackdown comes shortly after another significant policy shift in May, when Tanzania banned the use of foreign currencies in domestic transactions, mandating the exclusive use of the Tanzanian Shilling.
