It has now been a month since the introduction of the Business Licensing (Prohibition
of Business Activities for Non-Citizens) Order by the Government of Tanzania published
in the Government Notice No. 487A of 2025 on 28th July 2025. The order has banned
non-citizens from participating in specified 15 business activities. The order is a
subsidiary legislation made under Section 14A(2) of The Business Licensing Act. Tanzania
has received criticism from her neighbours who claim that such order goes against
Tanzania’s commitment to regional and international instruments that aim at achieving
free movement of labour and capital.
The order further prohibits all licensing authorities (BRELA, Local Government
Authorities etc.) from issuing and/or renewing business licenses for non-citizens engaged
in the specified business activities.
The 15 activities banned for non-citizens are:-
- The business of sale of goods on a wholesale and retail basis, excluding supermarkets, specialised product outlets, and wholesale centers for local producers
- Mobile money transfers
- Salon business unless the business is conducted in a hotel or for tourism purposes
- Repair of mobile phones and electronic devices
- 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.
- Operation of museums or curio shops.
- Brokerage or agency in businesses and real estate.
- Clearing and forwarding services.
- On-farm crop purchasing operations.
- Ownership or operation of gambling machines or devices, except within casino premises
- Ownership and operation of micro and small industries
Non-Citizen (Non-citizen individual or even companies with non-citizen shareholders?) According to the order, the definition of non-citizen is that offered by the Tanzania Citizenship Act Cap 357 R.E 2023. The Act doesn’t offer a straight forward definition of who a non-citizen is but only provides on categories of citizens. So, an individual who doesn’t fall in any of the categories provided then he is regarded as a non-citizen. From the above, it can be gathered that the order only bans non-citizen individuals operating as sole proprietorships and in partnerships. In practice, the licensing authorities have extended the application of the order to companies with foreign shareholders. It is therefore imperative for authorities to offer guideline on the applicability of the order.
Offences & Sanctions
The order has made it a criminal offence for non-citizens to carry out the prohibited activities. It also a crime for a Tanzanian citizen to assist or aid a non-citizen to assist or aid a non-citizen to carry out the prohibited activities. The order has further provided for criminal penalties for both Tanzanian citizens who assists or aids non-citizens to carry out the prohibited business activities and Non-Citizens who carry out the prohibited business activities. It is unclear what amounts to assistance or aid to a non- citizen by a Tanzanian citizen.
For a Tanzanian citizen who assists or aids a non-citizen shall be liable (if convicted) to a fine of Tanzanian Shillings Five million (TZS 5,000,000) or an imprisonment term not exceeding Three months. For a non-citizen he/she shall be liable (if convicted) to a fine of not less than Tanzanian Shillings Ten million (TZS 10,000,000) and an imprisonment term not exceeding Six months. The non-citizen will also have his/her visa and resident permit revoked.
Conclusion
The order seeks to protect the local investors from foreign players with financial prowess in the specified activities which it is understood that according to the government data they are mostly done by a common Tanzanian. Foreign entities are advised to ensure compliance with the order. For further legal assistance contact us at enquiry@mhmadvocates.co.tz
