Tanzania Bans Foreign Owned Small-Business

BBC

Tanzania has introduced a new directive barring foreign nationals from engaging in several small and medium-sized business sectors. The move, announced under a new business licensing order, targets areas such as mobile money services, retail shops, salons, tour guiding, mining, real estate broking, and courier services. According to the government, the policy is intended to protect Tanzanian jobs and encourage citizen-driven economic growth.

Existing foreign businesses may operate until their current licenses expire, but no renewals or new applications will be allowed. Offenders face steep fines, jail terms, and deportation. Tanzanians found aiding foreigners in skirting the law could also face legal action.

The policy has immediate consequences for many Kenyans who operate small businesses in Tanzanian cities like Arusha and Dar es Salaam. Many stand to lose their livelihoods. Kenyan lawmakers have responded with calls for retaliatory measures, claiming the new law undermines the East African Community’s Common Market Protocol, which guarantees the right to establish businesses across member states.

Critics of the policy warn it could strain regional relations and reverse gains made under the East African integration project. However, supporters within Tanzania argue the government is right to prioritize citizens in the face of rising unemployment and increasing foreign dominance in key sectors.

With elections approaching in Tanzania, President Samia Suluhu’s administration is under pressure to show economic progress. The fallout from this move may test not just bilateral ties with Kenya, but also the long-term strength of the East African Community itself.