Tanzania has enacted a ban restricting foreign nationals from owning and running small businesses, inciting a wave of discontent from neighboring Kenya. The new policies, announced by Trade Minister Selemani Jafo, limit foreign operations in 15 sectors including tour guiding, mobile money services, and small-scale mining. Jafo stated the ban is designed to protect local livelihoods amid concerns that foreigners, notably Chinese nationals, have increasingly dominated smaller trades.
The decision has garnered local approval in Tanzania, where traders have previously protested against perceived unfair competition and taxation by foreign operators. "We've welcomed this decision because it protects the livelihoods of Tanzanian traders," said Severine Mushi, head of the Kariakoo traders' association. However, those who violate the ban face severe penalties, including fines, potential imprisonment, and loss of work permits.
In Kenya, the reaction has been largely critical, as many argue that the decision contravenes East African Community (EAC) agreements that promote free movement and trade among the member states. Bernard Shinali, chairman of the National Assembly Trade Committee, warned that reciprocal restrictions could arise, highlighting the prevalence of Tanzanian workers on Kenyan mining sites. Commentators have echoed concerns on social media, highlighting the contradictions in Tanzania's protective policies that challenge regional integration.
Tensions have simmered between Tanzania and Kenya over various issues, with past criticisms directed at Tanzania's imposition of protective tariffs and trade restrictions. Kenyan Foreign Affairs Minister Musalia Mudavadi previously noted the large number of Kenyans residing and working in Tanzania, underlining the importance of maintaining cooperative relations. Diplomatic strains have been heightened by incidents such as the deportation of Kenyans engaged in observing political trials in Tanzania, adding to the already complex dynamics between the two nations.
As Tanzania prepares for general elections in October, the ruling CCM party is expected to maintain power amidst an environment marked by rising nationalist sentiments and regional challenges.
The decision has garnered local approval in Tanzania, where traders have previously protested against perceived unfair competition and taxation by foreign operators. "We've welcomed this decision because it protects the livelihoods of Tanzanian traders," said Severine Mushi, head of the Kariakoo traders' association. However, those who violate the ban face severe penalties, including fines, potential imprisonment, and loss of work permits.
In Kenya, the reaction has been largely critical, as many argue that the decision contravenes East African Community (EAC) agreements that promote free movement and trade among the member states. Bernard Shinali, chairman of the National Assembly Trade Committee, warned that reciprocal restrictions could arise, highlighting the prevalence of Tanzanian workers on Kenyan mining sites. Commentators have echoed concerns on social media, highlighting the contradictions in Tanzania's protective policies that challenge regional integration.
Tensions have simmered between Tanzania and Kenya over various issues, with past criticisms directed at Tanzania's imposition of protective tariffs and trade restrictions. Kenyan Foreign Affairs Minister Musalia Mudavadi previously noted the large number of Kenyans residing and working in Tanzania, underlining the importance of maintaining cooperative relations. Diplomatic strains have been heightened by incidents such as the deportation of Kenyans engaged in observing political trials in Tanzania, adding to the already complex dynamics between the two nations.
As Tanzania prepares for general elections in October, the ruling CCM party is expected to maintain power amidst an environment marked by rising nationalist sentiments and regional challenges.
