The latest directive by Tanzania aims to protect local livelihoods while raising questions about regional trade agreements.
**Tanzania's Restrictive Business Policy Draws Criticism from Kenya**
**Tanzania's Restrictive Business Policy Draws Criticism from Kenya**
Tanzania's new regulations limiting foreign ownership in small businesses have stirred controversy and backlash among neighboring Kenyans.
The Tanzanian government has enacted a ban prohibiting foreign nationals from operating small-scale businesses across 15 different sectors, an initiative driven by Trade Minister Selemani Jafo, who articulated that the move seeks to bolster local employment and reduce foreign encroachment in the informal sector. The sectors impacted include areas such as mobile money transfers, beauty salons, curio shops, and small-scale mining, where Tanzanian businesses have claimed foreign competition, notably from Chinese nationals, is impacting their livelihoods.
In the bustling Kariakoo district of Dar es Salaam, traders welcomed the decision, voicing concerns that foreign traders had increasingly dominated local markets. "We have welcomed this decision because it protects the livelihoods of Tanzanian traders," noted Severine Mushi, head of the local traders' association.
However, the announcement has triggered significant discontent in Kenya, with leaders and citizens arguing that the ban violates the established East African Community (EAC) protocols, which allow for free movement of goods and people. Kenyan National Assembly Trade Committee chairman Bernard Shinali expressed fears over potential retaliatory measures, highlighting the thousands of Tanzanians working in Kenya’s mining sector. Concerns over the potential long-term implications of Tanzania’s protectionist approaches were echoed by veteran Kenyan hotelier Mohammed Hersi, who emphasized that isolating foreign enterprises could stifle overall national growth.
Kenyans took to social media to raise alarms over the restrictions, highlighting that Tanzanians operate small businesses in Kenya without major hurdles. This policy shift has resurfaced latent tensions between Tanzania and Kenya, which have historically seen economic disputes arise, including Tanzania's protective tariffs that have drawn ire from its regional partners.
Kenya's Foreign Affairs Minister Musalia Mudavadi previously acknowledged that around 250,000 Kenyans reside in Tanzania, emphasizing the importance of maintaining cordial bilateral relations amidst growing diplomatic strains. The backdrop of the new business restrictions coincides with Tanzania’s upcoming general elections in October, in which the ruling party, CCM, is expected to maintain its dominance.
In the bustling Kariakoo district of Dar es Salaam, traders welcomed the decision, voicing concerns that foreign traders had increasingly dominated local markets. "We have welcomed this decision because it protects the livelihoods of Tanzanian traders," noted Severine Mushi, head of the local traders' association.
However, the announcement has triggered significant discontent in Kenya, with leaders and citizens arguing that the ban violates the established East African Community (EAC) protocols, which allow for free movement of goods and people. Kenyan National Assembly Trade Committee chairman Bernard Shinali expressed fears over potential retaliatory measures, highlighting the thousands of Tanzanians working in Kenya’s mining sector. Concerns over the potential long-term implications of Tanzania’s protectionist approaches were echoed by veteran Kenyan hotelier Mohammed Hersi, who emphasized that isolating foreign enterprises could stifle overall national growth.
Kenyans took to social media to raise alarms over the restrictions, highlighting that Tanzanians operate small businesses in Kenya without major hurdles. This policy shift has resurfaced latent tensions between Tanzania and Kenya, which have historically seen economic disputes arise, including Tanzania's protective tariffs that have drawn ire from its regional partners.
Kenya's Foreign Affairs Minister Musalia Mudavadi previously acknowledged that around 250,000 Kenyans reside in Tanzania, emphasizing the importance of maintaining cordial bilateral relations amidst growing diplomatic strains. The backdrop of the new business restrictions coincides with Tanzania’s upcoming general elections in October, in which the ruling party, CCM, is expected to maintain its dominance.
