Prohibited Businesses for Foreigners in Tanzania: Full Guide & Legal Breakdown (2025 Update)
- TCI
- Jul 31
- 8 min read
🌍 Thinking of Investing in Tanzania? Prohibited Businesses in Tanzania ! Read This First.
Tanzania is a land full of economic potential and rising investment appeal. With a population of over 65 million people, abundant natural resources, political stability, and its strategic location as a gateway to East and Central Africa, the country offers numerous opportunities across key sectors.
Tanzania’s Vision 2025 policy places strong emphasis on building an industrialized, middle-income economy with private-sector involvement at the core. As a result, international and diaspora investors are increasingly drawn to Tanzania’s agriculture, energy, tourism, and manufacturing sectors.
However, before you register a company or sign a local partnership, it’s crucial to understand which business activities are legally prohibited for foreigners. These restrictions are not designed to deter investment, but rather to protect small-scale Tanzanian entrepreneurs and encourage local ownership in foundational parts of the economy.
This comprehensive guide explains GN No. 487A of 2025—the new directive that outlines prohibited business sectors for non-citizens—and how you can still invest legally and profitably in Tanzania with expert support.
🧾 What Is GN No. 487A of 2025?
GN No. 487A of 2025 is the Business Licensing (Prohibition of Business Activities for Non-Citizens) Order, issued under Section 14A(2) of the Business Licensing Act (Cap. 101).
This regulation, enforced on 28th July 2025, specifies 15 types of business activities that are now fully restricted to Tanzanian citizens. The law clearly states that no new business licenses will be issued, and existing licenses will not be renewed, for foreigners engaging in these sectors.
The move is intended to stimulate inclusive economic development, reduce unemployment, empower Tanzanian small business owners, and limit unfair foreign competition in local, low-capital businesses.
A non-citizen, for the purposes of this law, includes:
Foreign nationals (regardless of residency status)
Dual citizens not formally recognized under the Tanzania Citizenship Act (Cap. 357)
Businesses where foreign ownership or control exceeds legal thresholds
⚖️ Legal Consequences for Violation
If a foreigner is found operating within a prohibited sector, the consequences are swift and severe:
Fine: Not less than TZS 10 million
Imprisonment: Up to 6 months
Visa/permit cancellation: Includes business visa, residence permit, and work permit revocation
Additionally, Tanzanian citizens who assist foreigners—by acting as front owners or signing on behalf of a foreign operator—are subject to:
A fine of TZS 5 million
Up to 3 months of imprisonment
Licensing authorities are also legally required not to issue or renew licenses for non-citizens in any of the listed business categories. They may be held accountable for any illegal license processing.
This is a clear signal from the government: invest legally, or risk losing your business and immigration status.
📋 Full List: Prohibited Business Activities for Foreigners in Tanzania (2025)
1. Wholesale and Retail Trade of Goods
Operating shops, stalls, and markets is now strictly a local activity. This prevents foreign domination of Tanzania’s most accessible economic activity.
2. Mobile Money Transfer Services
Becoming an agent for services like M-Pesa or Airtel Money is reserved for citizens. Foreign telecoms may operate networks, but agent-level businesses must be Tanzanian-owned.
3. Repair of Mobile Phones & Electronics
Running a small electronics repair center or phone service kiosk is restricted to locals to stimulate technical skill development and local employment.
4. Salon and Beauty Services
Hair salons, barbershops, and beauty parlors (unless linked to tourism infrastructure) must be fully Tanzanian owned and operated.
5. Office, Home, and Environmental Cleaning
All forms of cleaning services—from domestic to commercial—are prohibited for non-citizens.
6. Small-Scale Mining
Artisanal mining (e.g., gemstone pits, gold panning) is reserved for Tanzanians. Foreigners can still invest in large-scale mining under the Mining Act.
7. Domestic Courier & Parcel Delivery
Last-mile delivery, boda-boda dispatch, and local courier services are off-limits to non-citizens.
8. Tour Guiding
Foreign nationals may own safari lodges but may not work as tour guides in parks, historical sites, or nature reserves.
9. Radio and TV Broadcasting
For national sovereignty reasons, radio and TV station ownership is restricted. Foreign media may enter partnerships but not full ownership.
10. Museums & Curio Shops
Cultural preservation is a priority. Businesses selling Tanzanian artifacts, jewelry, or art must be citizen-owned.
11. Real Estate and Business Brokerage
Acting as a real estate agent or business intermediary is not permitted for foreigners. You may develop or own property, but not broker transactions.
12. Clearing & Forwarding
Handling customs clearance or forwarding goods at borders and ports is now restricted to Tanzanians.
13. On-Farm Crop Purchasing
Buying crops like maize or coffee directly from farmers is prohibited. Foreigners must buy through licensed traders or regulated auctions.
14. Gambling Machines (Outside Casinos)
Foreigners can invest in casinos, but not standalone betting machines or kiosks outside licensed gambling facilities.
15. Micro & Small-Scale Industries
Businesses such as bakeries, welding shops, tailoring units, and small-scale food processors must be fully Tanzanian owned.
🔄 Transition for Existing Businesses
Foreigners already licensed in these restricted sectors may continue operating only until their current license expires. There will be no renewal.
To avoid penalties, affected business owners should:
Exit or sell the business to a local investor
Convert or pivot to a permitted sector
Partner legally with a Tanzanian, under a compliant joint venture or shareholding arrangement
🛑 Common Mistake: Proxy Ownership or Fronting
A dangerous but unfortunately common workaround is registering a business under a Tanzanian citizen’s name while retaining foreign control.
This is illegal. If discovered, both the foreigner and the proxy may be prosecuted, and the business license revoked.
For compliance, joint ventures or partnerships must be genuinely structured, with legally valid shareholding, governance, and ownership documents in place.
At TCI Consultants, we guide you on how to partner legally and ethically, avoiding fronting or misrepresentation.
✅ Sectors Still Open to Foreign Investors
Don’t be discouraged. Most mid- to high-capital business sectors remain fully or partially open to foreign investors, especially those aligned with Tanzania’s industrial and export ambitions.
Examples of Foreign-Open Sectors:
Agribusiness: Medium/large commercial farms, irrigation, processing of avocados, cashew, sunflower, or spices
Renewable Energy: Off-grid solar, mini-hydro plants, and biomass facilities
Tourism Infrastructure: Hotels, game lodges, resorts, eco-tourism parks
Manufacturing: Food & beverage processing, textile production, industrial goods
ICT: Software, digital platforms, BPOs, cloud services, and fintech
Real Estate Development: Gated communities, malls, commercial apartments
Transport & Logistics: Warehousing, shipping, cargo haulage (non-clearing)
These sectors often qualify for special incentives, including tax holidays, import duty relief, and land access support through the Tanzania Investment Centre (TIC).
📌 Investor Tip: Compare with the Region
While Tanzania’s business restrictions for foreigners may appear strict, similar rules exist in other African nations.
Kenya and Uganda both reserve small-scale retail and beauty services for citizens.
Ghana restricts petty trade and taxi businesses to Ghanaians.
Nigeria also protects over 20 sectors from foreign participation, including certain types of manufacturing.
Tanzania's approach is consistent with regional trends aimed at protecting local entrepreneurship, particularly where capital requirements are low.
🌐 Business Protection Isn’t Unique to Tanzania
Tanzania is not alone in restricting certain businesses to citizens. In fact, many Western countries—often considered investment-friendly—protect strategic or small-scale economic activities for their nationals. This is a global norm aimed at balancing local empowerment with foreign investment.
🇺🇸 United States
In many states, certain professions (e.g., law, pharmacy, security services, and real estate brokerage) require U.S. citizenship or permanent residency.
The Jones Act restricts foreign ships from transporting goods between U.S. ports—a powerful protectionist policy in maritime trade.
🇨🇦 Canada
Cultural industries, such as publishing, broadcasting, and film production, are protected sectors. Foreign ownership in radio or TV broadcasting is highly regulated or capped.
Some provinces require Canadian residency to operate transport companies or liquor stores.
🇦🇺 Australia
Foreigners are restricted from purchasing established (secondhand) residential property without special approval. The government prioritizes new development and local homeownership.
Security, telecommunications, and media ownership are also subject to national interest tests.
🇪🇺 European Union
While the EU allows free movement among member states, non-EU nationals face limitations in many countries when it comes to owning agricultural land, practicing certain trades, or bidding on public contracts.
These examples underscore a simple truth: Every country protects certain sectors for its own citizens—whether to preserve jobs, safeguard sovereignty, or encourage local entrepreneurship.
In this context, Tanzania’s restrictions are not extreme but rather aligned with global best practice.
🧩 Real-Life Scenario
A foreign investor approached TCI Consultants in early 2025, intending to open a chain of mobile phone repair shops. After reviewing the business model, we informed them that this was among the restricted sectors under GN No. 487A.
Instead of abandoning their plans entirely, we helped them pivot into importing mobile phone accessories and establishing an e-commerce tech platform to connect Tanzanian repair technicians with customers. The business thrived—and remained compliant.
🇹🇿 Why Tanzania Still Stands Out as a Top Investment Destination
Despite the business restrictions outlined under GN No. 487A, Tanzania remains one of the most promising and accessible markets in Africa—and possibly the world—for strategic, high-value investment.
1. Political and Economic Stability
Tanzania enjoys long-standing political stability and peaceful transitions of power. The government has remained committed to macroeconomic reform, reducing inflation, and promoting investor confidence.
2. Access to Regional Markets
As a member of both the East African Community (EAC) and the Southern African Development Community (SADC), Tanzania offers access to a combined market of over 400 million people. Export-oriented businesses benefit from reduced tariffs, shared infrastructure, and harmonized regulations.
3. Strategic Geographic Location
The country boasts multiple ports, including Dar es Salaam, a key maritime hub for landlocked neighbors like Zambia, Rwanda, Uganda, and the DRC. For logistics, marine trade, and manufacturing, this geographic advantage is unmatched in the region.
4. Abundant Natural Resources
Tanzania is rich in gold, gemstones, gas, agricultural land, and wildlife. This positions it well for investment in mining, energy, conservation tourism, and agro-processing.
5. Pro-Investment Policy Framework
Through the Tanzania Investment Centre (TIC), investors can access incentives like:
Tax exemptions on capital goods
Duty-free importation of raw materials
Work and residence permit for foreign staff
Land allocation for investment projects
6. Young, Educated Workforce
With over 70% of the population under 35, Tanzania has a growing workforce—many of whom are digitally savvy, eager to upskill, and ready to contribute to modern businesses.
7. Support for Diaspora Investors
Special support is available for Tanzanians living abroad (diaspora) who want to return and invest. TCI Consultants helps structure such investments legally, with full local compliance.
👥 How TCI Consultants Can Help
We provide complete legal and investment facilitation for:
Company registration & legal structuring
License acquisition & permit support
Feasibility studies & sector research
Local partnerships & joint venture structuring
Land acquisition, property search & due diligence
Navigating tax & investment incentives via TIC
Whether you’re exploring real estate, manufacturing, agribusiness, or digital commerce, our team ensures full legal compliance and smart market entry.
Let’s help you build the right business, in the right way.
🧭 Final Thoughts
Tanzania offers vast potential for profitable and impactful investments—but like any sovereign nation, it sets boundaries to protect its citizens’ interests.
By aligning your business with permitted sectors, engaging in authentic local partnerships, and working with professional advisors, you can maximize success and minimize risk.
Let TCI Consultants be your partner in building a business that is not only legal and compliant, but also sustainable and scalable—right here in the heart of East Africa.
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