By Anak Dut

Tanzania’s decision to prohibit foreign nationals from owning and running small businesses has raised a debate across the region and provoked criticism from Kenya, a neighbouring state.

The new directive restricts involvement in 15 sectors, such as mobile money transfers, tour guiding, small-scale mining, on-farm crop buying, beauty salons, curio shops, and establishing radio and TV operations.

Trade Minister Selemani Jafo noted a growing trend of foreigners encroaching on traditionally Tanzanian-dominated areas in the informal sector.

The local business community in Tanzania largely embraced the decision, as there have been increasing worries about foreigners, taking over small businesses.

Tanzania has imposed heavy fines of up to 10 million Tanzanian shillings or a maximum of six months behind bars for those that will go against the law. Additionally, foreigners who violate the directive risk losing their residency permits and visas.

On the other hand, Tanzanian nationals who aid non-citizens while engaging in prohibited activities could face fines of up to 5 million shillings or a three-month prison sentence.

The government’s decision to prioritize local job creation and income has been met with mixed reactions within the East African Community, with some raising concerns that it could hinder regional trade and integration by acting as a non-tariff barrier.

In an attempt to address the matter, Beny Gideon Mabor  the Undersecretary in the Ministry of East African Community Affairs, said in a statement that the Ministry is currently engaging in discussions within their  institutional frameworks regarding the matter at hand.

“We kindly ask our citizens to remain calm as we work towards resolving this issue and will provide updates as necessary. I am pleased to report that all East African Community member states have fully committed to upholding their treaty obligations, particularly in regards to the Common Market Protocol,” he said.

“This includes actively working to eliminate non-tariff barriers to trade, services, and investment, and refraining from implementing any measures that would impede the four freedoms and two rights outlined in the Protocol,” He said..

Gideon added  that, the EAC Secretariat is in the process of analyzing the treaty obligations and will be presenting their findings at the upcoming meeting of the Sectoral Council on Trade, Industry, Finance, and Investment.