Top African Nations Banning Foreigners from Certain Businesses

Tanzania’s New Business Licensing Order

Tanzania has implemented a new business licensing order that restricts foreign nationals from operating certain types of businesses within the country. This move, known as the “Business Licencing (Prohibition of Business Activities for Non-Citizens Order) 2025,” has blocked 15 categories of businesses. The directive aims to prioritize Tanzanian citizens in key economic sectors and is part of a broader trend among African nations to protect local industries.

The decision was made by President Samia Suluhu’s administration on Monday, July 28, and has drawn attention from neighboring countries, including Kenya. According to the order, foreign nationals—such as Kenyans—are now prohibited from engaging in specific business activities. These include mobile money transfers, repair of mobile phones and electronic devices, salon businesses (unless conducted in hotels or for tourism purposes), home and office cleanliness, environmental services, and more.

Economic Empowerment Through Business Restrictions

Tanzania’s Trade Minister, Selemani Jafo, stated that the initiative is designed to economically empower local citizens. By limiting foreign participation in certain sectors, the government hopes to create more opportunities for Tanzanians and stimulate domestic entrepreneurship. This aligns with similar policies adopted by other African countries that have taken steps to protect their own markets from foreign competition.

Other African Countries with Similar Policies

Tanzania is not alone in implementing such restrictions. Several other African nations have introduced laws to preserve certain business opportunities for their citizens. Here is a list of some of these countries and the sectors they have protected:

• Burkina Faso: Foreigners are barred from owning farmland and mineral concessions.
• Nigeria: Light manufacturing and retail sectors are reserved for locals.
• South Africa: Foreign investors must include local ownership to secure public contracts or listings.
• Zimbabwe: Businesses in retail, wholesale trade, agriculture, tourism, SMEs, and mining are restricted to local operators.
• Ghana: A wide range of businesses, including agent services, auctioneering, car washes, and internet cafés, are limited to local entrepreneurs.
• Swaziland: Industries like natural seed oil production and skincare are reserved for locals.
• Zambia: Manufacturing of school uniforms, cement bricks, and traditional crafts, as well as food and beverage production, is restricted to domestic entities.
• Botswana: Community-based tourism and small-scale enterprises are prioritized for local development.

Regional Reactions and Diplomatic Efforts

Tanzania’s new policy has sparked discussions within the East African Community (EAC). Kenyan authorities have expressed concerns over the potential impact on regional integration. Trade Cabinet Secretary Lee Kinyanjui emphasized that the order could undermine the EAC’s goal of fostering economic cooperation among member states.

Prime Cabinet Secretary and Foreign Affairs CS Musalia Mudavadi also commented on the issue, stating that President William Ruto is in ongoing discussions with President Samia Suluhu to address the matter through diplomatic channels. The Kenyan government is seeking a resolution that maintains regional unity while respecting national policies.

Implications for Cross-Border Business

This development highlights the growing tension between national economic interests and regional integration efforts. While Tanzania’s move may benefit local entrepreneurs, it could also complicate cross-border trade and investment. As more African countries adopt similar policies, the challenge lies in balancing protectionism with the need for open and cooperative regional economies.

The situation underscores the importance of dialogue and collaboration among African nations to ensure that economic policies support both local development and regional stability.