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Several African countries have moved to tighten restrictions on foreign nationals engaging in certain small-scale business activities, as part of policies aimed at protecting limited economic sectors on which large segments of local populations depend for their livelihoods.
According to a report published by Business Insider Africa, countries that have implemented or are moving toward such restrictions include Ghana, Tanzania, Botswana, and Kenya, where certain regulations prohibit foreigners from engaging in specific business activities reserved for citizens.
The restrictions particularly target businesses requiring relatively small amounts of capital, including small-scale retail trade, mobile money transfer services, beauty salons, and certain forms of small-scale manufacturing. At the same time, these countries continue to welcome major foreign investments and large-scale, capital-intensive projects.
Ghana and Botswana are among the countries that have for years implemented policies aimed at protecting informal retail businesses and certain commercial sectors for the benefit of citizens. Botswana, in particular, links such measures to policies designed to promote citizens’ economic empowerment and increase their participation in economic activities.
This trend reflects a growing shift in the economic policies of several African countries, as governments seek to strike a balance between attracting foreign investment and capital into major projects and protecting small businesses that serve as a vital source of income and livelihoods for local communities.
These policies are emerging amid growing competition in small-scale commercial activities, prompting some governments to give citizens priority in specific sectors while keeping the door open to foreign investors in areas that require larger investments and offer greater opportunities for economic growth and job creation.
