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Arusha, Tanzania | THE INDEPENDENT | The East African Community and regional leaders have condemned the recent business restrictions imposed by the Tanzanian government.
On Tuesday, Tanzania issued a new regulation, the Business Licensing (Prohibition of Business Activities for Non-Citizens) Order, 2025, restricting foreigners from participating in certain business sectors. This order, effective from July 28, 2025, aims to empower local citizens by reserving specific business activities for them.
But Abubakar Mukira, the President East African Law Society, says that it sends a dangerous message that duly registered businesses and law-abiding citizens from fellow African nations can be excluded summarily and without due process.
The order, according to the statement released on Thursday, will have a great impact on mainly vulnerable communities, especially small-scale cross-border businesses.
The lawyers call for the immediate suspension and withdrawal of the Business Licensing Order, 2025, pending a comprehensive and consultative review of its compatibility with Tanzania’s regional and continental obligations.
They also urge the EAC Secretariat and Council of Ministers to initiate dialogue with Tanzania urgently, and, if necessary, invoke the relevant dispute settlement mechanisms under the Treaty.
The Society also encourages the AfCFTA and the African Union to scrutinise the Order’s implications on integration and continental trade.
They have vowed legal action against the government of Tanzania should it fail to correct the situation.
The government of Kenya has also protested against the Order, calling on the EAC Secretariat to direct its review of the Business Licensing (Prohibition of Business Activities for Non-citizens) Order, 2025.
Caroline Karugu, principal secretary, state department for East Africa affairs warns that the Order risks undermining regional economic integration efforts under the EAC.
The Order sets out punishments for those violating it, including up to 10 Million Tanzania Shillings (about 14 Million Uganda Shillings) or jail term or up to six months and revocation of visas.
The list of ring-fenced business areas for Tanzanian citizens consists of the business of the sale of goods in retail stores and total trade, excluding superstores, specialised product outlets, and wholesale centres for local producers, Mobile money transfers, repair of mobile phones and electronic devices, salon business, unless the business is conducted in a hotel or for tourism purposes.
Others are home, office and environmental cleanings, mobile food vendors, postal services and parcel delivery within the country, and tour guiding within the country. Repair and maintenance of radio and television, operation of motorcade or car hire services, Brokerage of motor vehicles and real estate and operation of an advertising agency.
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