Wednesday, August 13, 2025

Tanzania Bans Foreigners from Small-Scale Companies

Tanzania Bans Foreigners from Small-Scale Companies

Commerce Minister Selemani Jafo justified the choice by stating international nationals have been shifting in droves to the casual sector.


Tanzania has launched a brand new ban stopping international nationals from working or proudly owning small-scale companies, a transfer that has drawn reward domestically however sparked outrage in neighboring Kenya.

Underneath the directive, foreigners are barred from working in 15 sectors, together with cell cash providers, tour guiding, magnificence salons, curio outlets, small-scale mining, on-farm crop shopping for, and even organising radio and tv stations.

Commerce Minister Selemani Jafo mentioned the choice was made as a result of international nationals had more and more moved into the casual sector — areas the federal government believes must be reserved for Tanzanians. “We’ve welcomed this choice as a result of it protects the livelihoods of Tanzanian merchants,” mentioned Severine Mushi, head of the Kariakoo merchants’ affiliation, in an interview with The Citizen.

Regionally, the announcement has been seen as a technique to curb what many view as international encroachment, notably by Chinese language merchants. In 2023, Dar es Salaam’s Kariakoo market noticed protests over heavy taxes and claims of unfair competitors from foreign-owned outlets. Violators of the brand new regulation may face fines, as much as six months in jail, and the lack of visas or work permits.

Minister Jafo additionally mentioned he hopes the restrictions will push international traders towards larger-scale ventures.

Nevertheless, Kenya’s management has sharply criticized the choice, arguing it breaches East African Group (EAC) agreements that guarantee free commerce and motion throughout the bloc.

“It’s subsequently vital, within the spirit of EAC, that bilateral engagements be held to resolve these points,” Kenyan Commerce Minister Lee Kinyanjui mentioned, warning the coverage will “harm” each nations’ economies.

Bernard Shinali, chair of Kenya’s Nationwide Meeting Commerce Committee, cautioned that the ban may provoke reciprocal motion. “There are a lot of Tanzanians working in our mining websites too… It’s clear that Tanzanians have gone too far, and we should always lower hyperlinks with them,” he mentioned, as reported by The Each day Nation.

Veteran Kenyan hotelier Mohammed Hersi additionally voiced concern, writing on X: “Generally, you will need to give attention to the larger image… Protectionism won’t ever assist a rustic to thrive.”

The controversy comes towards a backdrop of recurring financial and political tensions between the 2 neighbors. In Might, Kenyan International Affairs Minister, Musalia Mudavadi, highlighted that about 250,000 Kenyans stay or work in Tanzania, underscoring the significance of sustaining good relations.

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