EAC confronts Tanzania over ban on foreign traders, warns move undermines East Africa’s common market

EAC Criticizes Tanzania Over Foreign Business Ban, Warns of Threat to Regional Integration

The East African Community (EAC) Secretariat has sharply criticized Tanzania for its recent directive banning non-citizens, including Kenyans, from operating in 15 business sectors, warning that the move threatens the spirit and structure of the regional Common Market.

In a strongly worded statement, EAC Secretary General Veronica Nduva said the directive violates the EAC Common Market Protocol, which guarantees the free movement of goods, services, labour, and capital across member states.

“It is important to remind all Partner States that unilateral backtracking on these commitments is inconsistent with the obligations under the Protocol,” the statement reads in part. “This was reaffirmed by the Attorneys General through the Sectoral Council on Legal and Judicial Matters in November 2024.”

Tanzania’s order has drawn widespread criticism, especially from Kenya, Uganda, Rwanda, and Burundi, countries whose traders have been directly affected. Many small-scale business operators, including food vendors, retailers, and transport service providers, have had their licences revoked under the new rules.

The directive, announced by Tanzania’s Minister for Industry and Trade, Selemani Saidi Jafo, imposes penalties of up to Tsh10 million (approximately Ksh502,927) or a six-month prison term for foreigners found operating in the restricted sectors.

While Tanzania argues the ban is intended to protect local businesses, the EAC says the move violates Article 13 of the Protocol, which prohibits member states from discriminating against citizens of other partner countries in service provision.

The EAC Secretariat has now launched a compliance review to assess Tanzania’s alignment with the regional agreement. The outcome of the review will be tabled at the upcoming Sectoral Council meeting on Trade, Industry, Finance, and Investment.

“All Partner States are encouraged to adhere to their commitments in order to maintain the integrity of our regional single market,” the Secretariat emphasized.

The EAC’s intervention comes after Kenya formally wrote to the Secretariat, urging it to compel Tanzania to reverse the controversial directive.