Tanzania's Trade Minister Selemani Jafo has implemented a ban on foreign nationals owning small businesses, targeting sectors like mobile money, tour guiding, and beauty salons. The government defends this decision as essential for safeguarding local livelihoods against foreign encroachment, particularly from Chinese traders. “We've welcomed this decision because it protects the livelihoods of Tanzanian traders,” said Severine Mushi, head of Kariakoo traders' association.
However, this move has sparked backlash in Kenya, with officials warning it might infringe East African Community agreements about free movement and trade. Kenyan Trade Committee chairman Bernard Shinali expressed concerns that reciprocal restrictions could follow, emphasizing the importance of Tanzanian workers in Kenyan industries. Veteran hotelier Mohammed Hersi argued for a broader perspective, stating that protectionism could hinder economic growth. Many Kenyans on social media echoed this sentiment, criticizing Tanzania's approach while highlighting how freely Tanzanians operate small businesses in Kenya.
Past tensions, including Tanzania's tariffs and treatment of Kenyans, have contributed to the strained relationship. As Tanzania prepares for upcoming elections in October, the potential fallout continues to loom over regional cooperation and integration.
