Tanzania is cracking down on foreign participation in key sectors of its economy. Under a new directive, foreigners are now prohibited from engaging in 15 business areas considered essential to grassroots economic empowerment.

Dodoma

Tanzania has implemented a directive prohibiting non-citizens from engaging in 15 business sectors considered vital for economic empowerment, such as salons, small retail shops, eateries, and mobile kiosks. The government states that the measure is designed to foster local job creation and income, with violators facing fines or imprisonment.

However, the decision has sparked concern among neighboring East African countries, with critics viewing it as a barrier to regional trade and integration. The move could affect the livelihoods of thousands of foreign workers, particularly Kenyans in Tanzania's informal sector, and may prompt reciprocal actions from other states. This directive follows an earlier policy requiring all domestic transactions to be conducted in Tanzanian shillings.

Tanzania bans non-citizens from running small businesses

Tanzania is on a mission to keep foreigners out of key sectors of its economy. Under a new directive, non-citizens are now banned from engaging in 15 business areas considered essential to economic empowerment. These include running salons, small retail shops, eateries and mobile kiosks, businesses traditionally dominated by Tanzanians. Violators face tough penalties, including fines of up to 10 million Tanzanian shillings, that's nearly 3,900 US dollars, or up to six months in prison. The government says the move is aimed at boosting local job creation and income, but the decision is raising concerns across the East African community. Many view it as a non-tariff barrier to regional trade and integration. With around 40,000 Kenyans living and working in Tanzania, many in the informal sector, the impact on livelihoods could be significant. Fears are growing that this could spark tit-for-tat measures from neighbouring states and threaten regional unity. The directive follows another bold economic step taken in May when Tanzania banned the use of foreign currency in domestic transactions, requiring all payments to be made in Tanzanian shillings.

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