Tanzania Bans Foreigners from Small-Scale Businesses, Sparking Regional Tensions
New Restrictions Target 15 Key Sectors
Tanzania has implemented a sweeping ban prohibiting foreign nationals from owning and operating small-scale businesses, triggering concerns and backlash from neighboring Kenya. The new directive, announced by Trade Minister Selemani Jafo, restricts foreign involvement in 15 key sectors, including:
- Mobile money transfers
- Tour guiding
- Small-scale mining
- On-farm crop buying
- Beauty salons
- Curio shops
- Radio and TV operations
Government Justifies Move to Protect Local Traders
Minister Jafo explained that the decision aims to safeguard Tanzanian livelihoods, as foreigners had increasingly dominated informal sectors traditionally occupied by locals. The policy has received domestic support, particularly from traders in Dar es Salaam’s Kariakoo shopping district, where tensions with Chinese business owners led to protests last year.
“We’ve welcomed this decision because it protects the livelihoods of Tanzanian traders,” Severine Mushi, head of the Kariakoo traders’ association, told The Citizen newspaper.
Violators face severe penalties, including fines, six-month jail terms, and revocation of visas and work permits. The government hopes the restrictions will redirect foreign investment toward large-scale enterprises.
Kenya Reacts with Anger and Threats of Retaliation
The ban has sparked outrage in Kenya, with officials arguing it violates East African Community (EAC) agreements guaranteeing free movement and trade among member states. Bernard Shinali, chairman of Kenya’s National Assembly Trade Committee, warned of potential reciprocal measures.
“There are many Tanzanians working in our mining sites too,” Shinali told Daily Nation. “It is clear that Tanzanians have gone too far and we should cut links with them.”
Kenya’s parliament plans to summon the trade minister for clarification, while prominent figures like hotelier Mohammed Hersi criticized the move as counterproductive protectionism.
Social Media Backlash and Regional Integration Concerns
Kenyans have flooded social media with complaints, accusing Tanzania of undermining regional unity. One X user wrote: “Tanzanians are doing all manner of small businesses in Kenya without any hindrance. It’s clear Tanzania has never been serious in making the EAC work.”
The controversy adds to existing tensions between the neighboring nations, which have historically clashed over trade policies. Kenya’s Foreign Affairs Minister Musalia Mudavadi recently noted that approximately 250,000 Kenyans live and work in Tanzania, emphasizing the need for diplomatic solutions.
Broader Political Context
The business restrictions come amid heightened political sensitivity in Tanzania, which faces general elections in October. The ruling CCM party is expected to maintain power, but recent diplomatic incidents—including the alleged mistreatment of Kenyan activists observing opposition leader Tundu Lissu’s treason trial—have strained regional relations.
As East African nations navigate competing economic interests, this latest policy shift raises questions about the future of regional integration and the balance between national protectionism and cross-border cooperation.