State tightens grip on reserved local business space
DODOMA: THE government has strengthened control over the involvement of foreign nationals in businesses reserved for Tanzanians as part of efforts to protect local enterprises and create more employment opportunities.
Presenting her ministry’s 137.8bn/- budget estimates for the 2026/27 financial year in Parliament yesterday, Minister for Industry and Trade, Judith Kapinga, said enforcement of Government Notice No. 487A issued on July 28, 2025, has already started yielding significant results.
The notice bars foreigners from engaging in 15 categories of businesses reserved for Tanzanians. The restricted businesses include wholesale and retail trade, domestic tour guiding services, mobile money agency services, salons and cargo transportation.
Others are curio shops, small-scale mining, establishment and operation of radio and television stations, smallscale industries, cleaning service companies and real estate businesses.
“In implementing the prohibition order, the ministry in collaboration with other authorities has taken firm policy, legal and operational measures,” Kapinga said.
She said the Business Registrations and Licensing Agency (BRELA) has blocked renewal of 907 business licences involving foreign nationals in various sectors to safeguard opportunities for local traders. Of the suspended licences, 737 were related to importation and sale of goods, five involved postal and parcel delivery services within national borders, 119 were linked to agency and brokerage services in trade and real estate and 46 involved cargo handling and transportation services.
According to the minister, the move has restored confidence among local traders, improved the business environment for Tanzanians and enhanced local participation and competitiveness in business activities.
“This step has restored confidence among Tanzanians in the government’s commitment to addressing businessrelated challenges while improving the investment climate for local entrepreneurs,” she said.
Kapinga said the government has also reviewed and prepared amendments aimed at strengthening implementation of the order, with the draft currently at the approval stage.
She further revealed that by April 2026, a total of 373 applications for work permits submitted by foreign nationals had been rejected for failing to meet legal requirements, as part of the government’s strategy to protect jobs and business opportunities for Tanzanians.
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In addition, Dar es Salaam and Mbeya city councils blocked renewal of 191 business licences owned by 48 foreign traders and companies operating in restricted sectors, including wholesale trade, retail business, small-scale mining and warehouse operations.
She said 13 of the affected businesses were located in Kariakoo area in Dar es Salaam. Meanwhile, the minister said the government plans to establish a Market and Industrial Intelligence Unit aimed at strengthening access to reliable international market information and industrial technology trends.
Kapinga said the initiative was prompted by challenges including limited information on global markets, lack of awareness of seasonal demand trends, quality standards and non-tariff barriers, as well as difficulties in identifying genuine investors from those engaged in dumping practices.
The unit will also help assess investors’ financial and technological capabilities. She said the proposed unit will be responsible for collecting and analysing international market information, identifying export opportunities and market demand trends, disseminating market intelligence to traders and issuing early warning alerts on global market changes.
“In the current highly competitive global trade and industrial environment, access to accurate, reliable and timely market and industrial technology information is essential for the development of the industrial and trade sectors,” she said.
