Tanzania Bans Foreigners from Operating Small Businesses in Latest Economic Protection Move

In a bold move aimed at safeguarding local enterprise, the Government of Tanzania has officially banned foreigners from engaging in small-scale businesses traditionally reserved for Tanzanian citizens. The directive, announced by the Ministry of Industry and Trade, takes immediate effect and targets sectors such as retail trading, food vending, mobile money operations, hairdressing, and other informal jobs.

The government says the ban is in line with the Tanzania Investment Act and Local Content Regulations, which prioritize job creation and economic participation for indigenous citizens.

“Foreign nationals are welcome to invest in large-scale, capital-intensive ventures, but small and petty trade will be preserved for Tanzanians,” said Minister of Industry and Trade, Hon. Dr. Ashatu Kijaji, during a press briefing.

Authorities have begun inspecting market centers and informal trade zones to ensure compliance. Foreign nationals found violating the new directive risk deportation, fines, or seizure of business property.

The move has been welcomed by many local traders who believe the influx of foreign petty traders—especially from neighboring countries—has increased competition and reduced profits for citizens.

However, critics argue the ban could affect bilateral trade relations and lead to retaliatory actions from neighboring states. Regional business groups have urged the government to balance national interests with regional integration goals, especially under the East African Community (EAC) framework.

As enforcement continues, the government has reiterated its commitment to creating a favorable investment climate for large-scale, foreign-backed businesses, while promoting entrepreneurship among Tanzanian youth and women in the informal sector.

This policy shift follows similar measures introduced in countries like Ghana and Nigeria, where governments have also restricted foreign participation in small-scale retail to protect local businesses.