A directive signed by Tanzania’s Minister for Industry and Trade, Selemani Saidi Jafo, on July 25, prohibits non-citizens from engaging in a wide range of small- and medium-scale economic activities many of which are popular among entrepreneurs from neighboring countries.

Among the restricted sectors are mobile money services, retail and wholesale trade, phone and electronic repair, hair and beauty salons, tour guiding, parcel delivery, and brokerage in real estate. Also barred is the ownership or operation of micro and small industries, gambling machines (outside casinos), and media houses.

According to the directive, exceptions will only be made in specific contexts, such as salons located in hotels or operating for tourism purposes. The government says the move is intended to safeguard Tanzanian citizens’ access to business opportunities and to boost domestic entrepreneurship.

“The measure is designed to protect sectors easily accessible to local citizens and ensure Tanzanians benefit fully from their economic potential,” the Ministry of Industry and Trade stated.

However, the policy has triggered alarm among regional observers, who say it undermines the EAC Common Market Protocol, which guarantees the free movement of labor, goods, services, and capital across member states including Rwanda, Uganda, Kenya, Burundi, South Sudan, the DRC, and Somalia.

Under the Protocol, citizens of one EAC member state have the right to work or establish businesses in another without facing discrimination or undue restrictions.

“This development runs counter to the principles of regional integration. It may lead to job losses, business closures, and increased tensions among partner states,” a regional policy analyst commented.

Tanzania has previously faced criticism for protectionist policies, including non-tariff barriers and import restrictions that have strained trade relations with its neighbors.

As of Wednesday, neither Rwanda’s Ministry of Foreign Affairs nor the EAC Secretariat had issued an official response. However, diplomatic sources suggest the issue is likely to be raised at the next EAC Council of Ministers meeting.

S/N Restricted Activity:

1. Retail and wholesale trade (except supermarkets and specialty outlets)
2. Mobile money transfers
3. Repair of phones and electronics
4. Hair salons (except in hotels or for tourism)
5. Cleaning services
6. Small-scale mining
7. Domestic parcel delivery
8. Tour guiding
9. Radio and television operations
10. Operation of museums or curio shops
11. Real estate brokerage
12. Clearing and forwarding services
13. On-farm crop purchasing
14. Operation of gambling machines (outside casinos)
15. Micro and small-scale industry ownership

The directive is expected to affect many Rwandan and other EAC nationals who have been operating small businesses in Tanzania, potentially disrupting livelihoods and reversing progress on regional economic integration.