Tanzania has implemented a ban on foreign nationals operating small-scale businesses, igniting tension with neighboring Kenya. The directive applies to 15 sectors including mobile money transfers, tour guiding, and retail services such as beauty salons and curio shops. Trade Minister Selemani Jafo stated that foreigners have increasingly encroached upon the informal sector, which should be occupied by Tanzanians. Many Tanzanians have welcomed this decision, fearing competition from foreign nationals, particularly from China.
Previously, traders in the busy Kariakoo district protested against what they saw as unfair competition due to aggressive tax policies and Chinese traders. Severine Mushi, president of the Kariakoo traders’ association, endorsed the ban, asserting it safeguards Tanzanian livelihoods. However, the decision has incited significant backlash in Kenya, with critics claiming it contradicts the East African Community (EAC) agreements that promote the free movement of people and commerce.
Kenyan officials, such as Trade Committee chairman Bernard Shinali, warned that this move might lead to reciprocal restrictions on Tanzanian businesses in Kenya. Additionally, veteran hotelier Mohammed Hersi questioned the efficacy of protectionist policies, arguing that they ultimately hinder national progress. Social media buzz reflects concerns about regional integration, with many Kenyans pointing out that Tanzanian nationals operate freely in Kenya.
The tension underscores the complex and often strained economic ties between the two nations, exacerbated by historical grievances and recent deportations of Kenyans from Tanzania.
Source: www.bbc.com
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