EAC concerns over Tanzania’s business ban on non-citizens

ARUSHA, Tanzania -East African Community Secretary-General Veronica M. Nduva has expressed strong concern over Tanzania’s recent decision to bar non-citizens from operating in 15 business sectors, saying the move may violate the bloc’s Common Market Protocol and undermine regional integration.

Speaking through an official EAC Secretariat statement issued from Arusha, Nduva warned that such measures threatens the core principles of the regional bloc, which guarantees the free movement of goods, services, and labor across partner states.

“The Secretariat is currently undertaking an analysis of the extent of compliance to obligations and will present any identified inconsistent measures by Partner States at the upcoming meeting of the Sectoral Council on Trade, Industry, Finance and Investment,” the statement read.

Nduva urged all member countries to uphold their treaty commitments, saying,

“The EAC remains committed to fostering a seamless regional integration process and calls on all Partner States to uphold the principles enshrined in the establishing Treaty and Common Market Protocol.”

The controversial ban, issued on July 25 under Government Notice and signed by Industry and Trade Minister Selemani Saidi Jafo, prohibits foreigners including citizens of EAC member states—from engaging in various economic activities. These include mobile money transfers, retail trade (excluding supermarkets and specialized outlets), salon operations (except those linked to tourism), electronic repairs, parcel delivery, and the establishment of media outlets, among others.

Violators may face fines of up to 10 million Tanzanian shillings (about $3,900), up to six months in prison, and potential revocation of visas and residence permits. Tanzanian citizens who assist foreigners in engaging in the prohibited activities could also be penalized.

The ban has triggered concern in capitals across the region. It directly affects entrepreneurs from neighboring Kenya, Uganda, Rwanda, Burundi, South Sudan, and the Democratic Republic of Congo, many of whom operate small businesses in Tanzania’s urban centers and border regions.

Legal analysts warn the measure may contravene Article 5 of the EAC Treaty and provisions of the Common Market Protocol, which prohibits member states from reintroducing trade barriers in previously liberalized sectors.

“Partner States shall not reverse or restrict sectors and trades they have previously liberalized,” the EAC Secretariat emphasized in its assessment.

Tanzania, for its part, has defended the measure as a way to protect local entrepreneurs from growing foreign competition, particularly in informal markets like Dar es Salaam’s Kariakoo.

Still, Nduva’s public intervention reflects growing unease within the bloc over protectionist trends. It also raises questions about how committed member states remain to integration goals that have underpinned the EAC’s growth for over two decades.