Editor's Review

EAC has expressed concern over rising restrictions on cross-border trade within the bloc following Tanzania’s new directive targeting foreign-run small businesses.

The East African Community has expressed concern over rising restrictions on cross-border trade within the bloc following Tanzania’s new directive targeting foreign-run small businesses.

In a statement released on Friday, August 1, the EAC Secretariat called out unilateral decisions by partner states that undermine the Common Market Protocol, warning that such actions threaten the region’s integration agenda.

“The East African Community (EAC) Secretariat wishes to address recent developments regarding restrictions on the freedoms and rights under the EAC Common Market Protocol,” the statement reads in part. “Partner States have committed to fostering regional integration by removing barriers to trade, services, and investment and to refrain from introducing unilateral measures that hinder the free movement and establishment rights of citizens and businesses across the region.”

This response comes just days after Tanzania issued a sweeping ban on foreign nationals engaging in a wide range of small and medium-sized enterprises.

The new directive, issued on July 28, bars non-citizens from operating retail shops, mobile money services, salons, food vending, electronic repair, postal delivery, and tour guiding, among other business activities.

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Tanzania President Samia Suluhu 

The EAC emphasized that such measures contravene commitments under Annex V of the Common Market Protocol, which outlines progressive liberalization of services.

“It is important to remind all Partner States that unilateral backtracking on these commitments is inconsistent with the obligations under the Protocol,” the statement further noted.

The Secretariat further disclosed that it is currently reviewing the level of compliance by all member states and will present findings at the upcoming Sectoral Council on Trade, Industry, Finance, and Investment.

“All Partner States are encouraged to adhere to the obligations they have committed to in order to maintain the integrity of our regional single market,” the EAC stated.

Tanzania's controversial policy shift has triggered diplomatic concern, especially in Kenya and Uganda, whose nationals are among those affected.