Tanzania has issued a new ban preventing foreign nationals from owning or running mainly small scale businesses, a move that has raised concerns and triggered backlash from neighboring Kenya, who are wondering why this move was made by Tanzania.
The directive blocks foreigners from operating in 15 business sectors, including mobile money transfers, tour guiding, small scale mining, on farm crop buying, beauty salons, curio shops, and launching radio and TV stations.
Trade Minister Selemani Jafo stated that the informal sector had seen increasing foreign participation in roles better suited for Tanzanian citizens.
Domestically, the decision has been largely praised, especially amid complaints that foreigners, particularly Chinese nationals, were encroaching on small scale trades.
Just last year, traders in Dar es Salaam’s busy Kariakoo shopping district staged a strike over high taxes and competition from Chinese merchants.
“We’ve welcomed this decision because it protects the livelihoods of Tanzanian traders,” said Severine Mushi, leader of the Kariakoo traders’ association, in an interview with The Citizen newspaper.
The penalties for violators include fines, up to six months in jail, and revocation of visas and work permits.
