Tanzania Restriction on Non-Citizens from Certain Business Activities Under New Licensing Order

Non-citizens already operating in these sectors may do so only until their current licences expire, with no possibility of renewal. The Order lacks clarity on whether it applies only to individuals or also to companies with foreign ownership or control, creating legal uncertainty for investors operating through Tanzanian-incorporated entities. Further confusion arises from undefined thresholds for micro and small-scale industries, with reliance on policy guidelines that are not legally binding.

The Order introduces penalties for violations, including fines, imprisonment, and revocation of residence permits or visas for non-citizens, and fines or jail terms for Tanzanian citizens who aid such operations. The move aligns with Tanzania’s broader economic indigenisation efforts aimed at reserving certain sectors for citizens. However, the absence of clear definitions or implementation guidelines raises concerns over potential inconsistent enforcement and uncertainty for foreign investors, especially in the agriculture, logistics, and digital services sectors. Investors are advised to assess their corporate structures, seek legal clarity, and engage early with regulators.

In this legal alert, we analyse the scope and impact of the new Order, identify areas of ambiguity in its application, and provide practical guidance for businesses and investors navigating this evolving regulatory environment.

Click here to download and read the full alert.

Should you have any questions regarding the information in this legal alert, please do not hesitate to contact Shemane Amin,  Geofrey Dimoso, Chris Green or Edward Williams.

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Contributors
1. Anwaar Katakweba – Associate
2. Dhara Pandya – Associate