The East African Community (EAC) has raised alarm over increasing restrictions on cross-border trade within the region, following Tanzania’s controversial directive barring foreigners from operating small and medium-sized businesses.
In a statement issued on Friday, August 1, the EAC Secretariat criticized unilateral decisions by partner states, warning that such actions undermine the Common Market Protocol and 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 read 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.”
The statement comes in the wake of Tanzania’s sweeping ban issued on July 28, which bars non-citizens from engaging in a wide range of small-scale economic activities. These include operating retail shops, mobile money outlets, salons, food vending, electronic repair, postal delivery, and tour guiding services, among others.
Foreign nationals with valid existing licenses have been allowed to continue operations only until their licenses expire.
The EAC Secretariat noted that Tanzania’s directive contravenes commitments under Annex V of the EAC Common Market Protocol, which mandates progressive liberalization of services 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 EAC stated.
The Secretariat further disclosed that it is assessing each member state’s level of compliance with the Common Market Protocol and will present its 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 statement concluded.
Tanzania’s latest move has sparked diplomatic concern, particularly in Kenya and Uganda, whose citizens are directly affected by the policy shift.
