2025 Business Licensing Order: Restricted Business Activities for Non-Citizens in Tanzania
A Guide to Compliance for Foreign Investors and Local Partners
1/2/20263 min read
The United Republic of Tanzania has recently issued a new legal instrument that significantly affects foreign entrepreneurs and investors operating or planning to operate in the country. The Business Licensing (Prohibition of Business Activities for Non-Citizens) Order, 2025 (Government Notice No. 487A of 2025), published and commenced on 28th July 2025, outlines specific business sectors that are now prohibited for non-citizens. This regulation reinforces Tanzania's commitment to protecting local enterprises and promoting citizen participation in the domestic economy.
As your trusted partner in Tanzanian compliance and business advisory, GB Gleam Consult has prepared this detailed overview to help foreign investors, local partners and stakeholders understand the implications of this Order and ensure full legal adherence.
What is the 2025 Business Licensing (Prohibition) Order?
This Order is a subsidiary legislation issued under Tanzanian business licensing laws. It explicitly prohibits non-citizens as defined under the Tanzania Citizenship Act from engaging in certain business activities. The regulation applies to both new license applications and renewals, meaning that no new permits will be issued or renewed for non-citizens in the listed sectors.
The Order also introduces strict penalties for violations, including fines, imprisonment, visa revocation and punitive measures for Tanzanian citizens who assist non-citizens in conducting prohibited activities.
Key Provisions of the Order
Prohibition of Listed Activities: Non-citizens are barred from conducting the business activities specified in the attached Schedule.
Licensing Ban: Licensing authorities are prohibited from issuing or renewing licenses to non-citizens for any of the restricted activities.
Penalties for Non-Citizens: If found conducting a prohibited business, a non-citizen may face:
A fine of not less than TZS 10,000,000
Imprisonment for up to six months
Revocation of visa and resident permit
Penalties for Tanzanian Citizens: Any Tanzanian citizen who assists a non-citizen in conducting a prohibited business may face:
A fine of TZS 5,000,000
Imprisonment for up to three months
Transition Period: Non-citizens holding valid licenses for any prohibited activity may continue operations until the license expires. No renewals will be permitted thereafter.
List of Business Activities Prohibited for Non-Citizens
The following 15 business activities are now reserved for Tanzanian citizens only:
Wholesale and retail trade of goods, excluding:
Supermarkets
Specialized products outlets
Wholesale centers for local producers
Mobile money transfer services
Repair of mobile phones and electronic devices
Salon businesses, unless operated within a hotel or for tourism purposes
Home, office, and environmental cleaning services
Small-scale mining operations
Domestic postal activities and parcel delivery
Tour guiding within Tanzania
Establishment and operation of radio and television stations
Operation of museums or curio shops
Brokerage or agency services in business and real estate
Clearing and forwarding services
On-farm crop purchasing operations
Ownership or operation of gambling machines or devices, except within licensed casino premises
Ownership and operation of micro and small-scale industries
Implications for Foreign Investors and Local Partners
This Order reflects Tanzania’s ongoing efforts to safeguard local enterprises and promote citizen-led economic participation. Foreign investors must now carefully review their current and planned business activities to ensure they do not fall within the prohibited list.
For existing non-citizen business owners in these sectors:
You may continue operating until your current license expires. However, you should begin planning for a transition, which may include:
Partnering with a Tanzanian citizen under a compliant structure
Restructuring or pivoting your business model
Exiting the market in an orderly manner
For Tanzanian entrepreneurs: This Order opens up protected sectors for local ownership and investment. If you are considering entering any of these fields, now is an opportune time to formalize and scale your operations. For partnerships between citizens and non-citizens: Extreme caution is required. Tanzanian citizens who facilitate non-citizen involvement in prohibited sectors risk significant fines and imprisonment.
The 2025 Business Licensing Order represents a significant shift in Tanzania’s investment landscape. While it protects local entrepreneurs, it also requires foreign investors to carefully align their ventures with permitted sectors. Staying informed and compliant is not optional it’s essential for sustainable business success in Tanzania.
How GB Gleam Consult Can Assist
Navigating regulatory changes requires expert local insight. GB Gleam Consult offers the following support:
Compliance Review: We assess your current or planned business activities against the prohibited list.
License Verification: We help verify the validity and expiration of existing licenses.
Business Restructuring Advice: For affected businesses, we provide guidance on legal restructuring, partnership models, and operational pivots.
New Business Registration: For Tanzanian citizens, we facilitate entry into newly reserved sectors through full registration, licensing, and compliance support.
Ongoing Regulatory Monitoring: We keep clients informed of legal changes and their implications.
Legal Document Reference
Title: The Business Licensing (Prohibition of Business Activities for Non-Citizens) Order, 2025
Government Notice No.: 487A of 2025
Publication Date: 28th July 2025
Commencement Date: 28th July 2025
Issuing Authority: Minister for Industry and Trade
Official Source: https://oagmis.oag.go.tz/portal/legislation/4549
Download Link: https://oagmis.oag.go.tz/portal/legislation/4549/download
GB Gleam Consult remains your reliable partner for navigating these changes. Contact us today for a consultation to ensure your business is fully compliant and strategically positioned for growth.
Email: info@gbgleamconsult.com
Phone/WhatsApp: +255-610-966462
Website: www.gbgleamconsult.com
GB Gleam Consult – Clarifying Compliance, Enabling Enterprise.
