Legal Update – 29 July 2029
Prohibition of Business Activities for Non-Citizens Order Published
- Non-citizens barred from certain business activities
- Prohibited business activities listed
- No new or renewed licences for the prohibited businesses
- Existing licences valid until expiry
- Hefty penalties or imprisonment for non-compliance provided
The Finance Act, 2025 introduced changes to the Business Licensing Act, by adding a new section 14A which provides for regulation of non-citizen participation in certain business activities. The said provision expressly prohibits licensing authorities from issuing business licenses to non-citizens unless the business activity is expressly permitted.
Pursuant to this amendment, the Minister for Industry and Trade has, by an order published on 28 July 2025, issued the Business Licensing (Prohibition of Business Activities for Non-Citizens), Order, (the Order) setting out specific business activities that are only permitted to Tanzanian citizens.
Order 3 of the Order requires licensing authorities not to issue or renew licences to non-citizens for any of the specified business activities in the schedule which includes the business of sale of goods on a wholesale and retail basis excluding supermarkets, specialized product outlets, and wholesale centers for local producers; mobile money transfer; 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; and operation of museums or curio shops.
Other prohibited activities are brokerage or agency in business and real estate; clearing and forwarding services; on-farm crop purchasing operations; ownership or operation of gambling machines or devices, except within casino premises; and ownership and operation of micro and small industries.
It is worth noting that the Order allows non-citizens who already hold valid licences in the above-mentioned sectors to continue with their operations until the expiry of the said licences. Furthermore, the Order establishes penalties for non-compliance to include fines of not less than TZS 10M or imprisonment for a term not exceeding 6 months and revocation of visa and resident permit. Moreover, a Tanzanian citizen who aids a non-citizen to carry out any of the prohibited business activities commits an offence punishable by a fine of TZS 5M or imprisonment for a term not exceeding 3 months.
To read the Business Licensing (Prohibition of Business Activities for Non-Citizens), Order, 2025 click here
