In a statement issued on Thursday, July 31, the EAC Secretariat warned that unilateral measures restricting freedoms guaranteed under the EAC Common Market Protocol undermine the bloc's efforts toward regional economic integration.
'Partner States shall not reverse or restrict sectors and trades they have previously liberalised,' the Secretariat said, adding that 'unilateral backtracking on these commitments is inconsistent with the obligations under the Protocol.'
The statement comes just three days after the Government of Tanzania gazetted a directive prohibiting non-citizens from engaging in a wide range of business activities. The new restrictions, published on July 28, prevent foreigners from operating mobile money services, repairing electronic devices, running tour companies, or engaging in small-scale mining and media operations, among other sectors.
The order, issued by Trade Minister Selemani Saidi Jafo, also limits foreign involvement in real estate, parcel delivery, cleaning services, salon operations (unless tourism-related), and wholesale and retail trade, except for supermarkets and speciality outlets that support local producers.
Under the new regulations, foreign nationals found violating the ban face fines of no less than 10 million Tanzanian shillings (approximately Frw 5.6 million), up to six months in prison, and the revocation of residence permits and visas. Tanzanians aiding such activities also risk penalties of up to 5 million shillings or three months' imprisonment.
Tanzanian authorities say the decision is aimed at protecting local businesses and promoting citizen participation in the economy. However, critics warn it could damage cross-border trade and investment, particularly within the EAC framework that guarantees the free movement of people, goods, services, and capital.
The EAC Secretariat noted that the Common Market Protocol, ratified by all Partner States, prohibits reversing liberalised sectors and commits countries to resolving disputes amicably through established institutions.
The Secretariat added that it is reviewing compliance levels among Partner States and will present its findings during the next meeting of the Sectoral Council on Trade, Industry, Finance and Investment.
'The EAC remains committed to fostering a seamless regional integration process,' the statement said, urging Partner States to uphold the principles outlined in the Treaty and Protocols governing the Community.
The East African Community (EAC) is a regional bloc consisting of eight countries: Rwanda, Burundi, the Democratic Republic of Congo, Kenya, Somalia, South Sudan, Tanzania, and Uganda. Somalia became a full member in March 2024.
Wycliffe Nyamasege
