AFCFTA: Tanzania’s New Business Ban Hits Nigerian Entrepreneurs Hard

The African Continental Free Trade Agreement (AfCFTA) has continued to take a negative effects on Nigerians in Tanzania sequel to the introduction new policies to discourage foreigners from participating in some certain businesses.

The Tanzanian government has enacted a new directive banning non-citizens, including Nigerians and other African nationals, from operating in 15 key business sectors.

The Business Licensing (Prohibition of Business Activities for Non-Citizens) Order, signed on July 25, 2025, by Minister for Industry and Trade Selemani Saidi Jafo, takes immediate effect and bars licensing authorities from issuing or renewing business licenses to foreigners in these sectors.

The restricted sectors include retail and wholesale trade (excluding supermarkets and specialized outlets), mobile phone repairs, mobile money transfer services, tour guiding, salons outside hotels, small-scale mining, crop purchasing on farms, home and office cleaning services, micro and small-scale industries ownership, real estate and business brokerage, and operation of gambling machines outside licensed casinos.

This policy aims to protect local entrepreneurs and preserve traditional business opportunities for Tanzanian citizens, responding to concerns about foreign traders, especially in busy commercial areas like Dar es Salaam’s Kariakoo Market, displacing local businesses. Minister Jafo emphasized that the order supports economic inclusion and job creation for Tanzanians.

Tanzania joins several other African countries with similar protectionist policies, including Ghana, Nigeria, Zimbabwe, South Africa, Swaziland, Zambia, and Botswana. Violations of the order could result in fines, imprisonment, and revocation of residence permits.

The Ministry has not yet clarified transitional arrangements for foreigners already operating in the affected sectors.

This directive marks a significant shift in Tanzania’s business environment, reinforcing the government’s commitment to local economic empowerment.