Tanzania’s decision to bar foreigners from engaging in some businesses has not only sparked outrage in Kenya but has also raised doubts about its commitment to the East African Community bloc. 

The move, which seeks to prohibit non-citizens from engaging in 15 small businesses, has experts now warning that the policy may jeorpadise cross-border trade and diplomatic relations. 

The directive has left the EAC Common Market Protocol hanging in the balance. Dr Edgar Githua, an international relations expert, believes the directive signals Tanzania’s unwillingness to implement the East African Protocol as Dodoma “has been grossly afraid” of the treaty.

“They feel they are not yet ready to integrate their society and economy fully with what the protocol dictate because they are left behind and that they are going to be overshadowed by their neighbours like Kenya and Uganda,” he says.  

“They have begun this protection using their businesses and jobs because they feel Kenya and Uganda’s human resources are more educated.” 

According to Dr Githua, this will come “at the cost of and risk of messing up with the integration we are building in the region.”

The move has rattled Nairobi, with Foreign Affairs Cabinet Secretary Musalia Mudavadi urging dialogue.

“I have personally called the Minister of Foreign Affairs of Tanzania and President William Ruto as the chair of the EAC summit have also had a conversation with both President Samia Suluhu and Tanzania’s Minister of Trade. We are using diplomatic channels to address that issue,” he said yesterday.

Cabinet Secretary for Investments, Trade and Industry Lee Kinyanjui described the directive as discriminatory tax measures threatening the regional trade gains. 

“The measures taken by Tanzania are substantive and undermine the core objective of regional economic integration under the Common Market Protocol,” he said. 

The CS said the order seems to criminalise lawful EAC investments and “will hurt both our economies,” calling for bilateral engagements to resolve these issues.

Githua concurs, suggesting this matter can be taken up by other East African states and discussed at the East African Legislative Assembly.

According to the Tanzania order, foreigners are prohibited from engaging in wholesale and retail sale of goods, excluding supermarkets, specialised product outlets, and wholesale centres for local products as well as repair of mobile phones and electronic devices.

Dodoma has also barred foreigners from trading in mobile money transfers, salon businesses – unless conducted in a hotel or for tourism purposes, and home, office and environmental cleanliness services.

Small-scale mining, postal activities and parcel delivery within the country, tour guiding, publishing and operation of radio and television, operation of kiosks or small shops, brokerage of agency in business and real estate and clearing and forwarding services are also now preserves of Tanzania citizens only.