Tanzania starts crackdown on foreign traders at Kariakoo Market
DAR ES SALAAM: MINISTER of Industry and Trade, Dr. Suleiman Jafo, has emphasized the urgent need for a new law to clearly define which types of businesses should be reserved for Tanzanian citizens in an effort to address the growing concern of foreign traders encroaching on local enterprises. Speaking todayh, June 6, 2025, in Dar …
DAR ES SALAAM: MINISTER of Industry and Trade, Dr. Suleiman Jafo, has emphasized the urgent need for a new law to clearly define which types of businesses should be reserved for Tanzanian citizens in an effort to address the growing concern of foreign traders encroaching on local enterprises.
Speaking todayh, June 6, 2025, in Dar es Salaam while receiving a report from a task force assigned to inspect and monitor foreign traders operating in the Kariakoo market area, Dr. Jafo stressed the importance of safeguarding economic opportunities for Tanzanians by establishing firm legal boundaries on who is permitted to conduct certain types of business in the country.
The task force was responsible for reviewing compliance with licensing regulations and work permits.
Dr. Jafo revealed that a team is already working in the Morogoro region to draft legal proposals that will address this matter.
The task force, which operated between May 5 and May 30, 2025, comprises five government institutions that oversee trade-related affairs.
He said that for the issue to be fully resolved, there must be a law that explicitly states who is allowed to conduct certain types of businesses.
“To end this issue, we must have a law that specifies which individuals are allowed to engage in certain types of businesses. Therefore, even if someone currently has the right to do that business, once the new law is enacted, their permit will be revoked,” he said.
Adding, Dr Jafo said he is exploring ways to have the proposals submitted to the current session of Parliament, which is focused on budget matters.
“According to procedure, this parliamentary session is dedicated to the national budget. However, we are seeking a way to present these proposals under a certificate of urgency, or, if that fails, we will request that some key provisions be included in the Finance Bill as an initial step, with the remaining parts to follow later,” he added.
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Deputy Permanent Secretary in the Ministry of Industry and Trade, Dr. Suleiman Serera, emphasized that this exercise must be ongoing and institutionalized to ensure lasting results.
He said repeated inspections and enforcement could be vital in preventing the problem from recurring.
The task force included officials from the Tanzania Revenue Authority (TRA), the Immigration Department, the Tanzania Bureau of Standards (TBS), the Labor Department, TANTRADE, the Prevention and Combating of Corruption Bureau (PCCB), BRELA, the Fair Competition Commission, the Kariakoo Business Community, and the Regional Commissioner’s Office.
The operation aimed to identify various violations, including businesses run by foreigners without proper permits, tax evasion, operations conducted in breach of licensing laws, labor violations, sales of substandard or banned products, and counterfeit goods.
Presenting the findings, the task force chairperson, Mr. Thabit Massa, reported that 108 business licenses were reviewed. Of these, 40 were issued by the city council and 61 by BRELA. Seven businesses were found operating without licenses, and nine had expired permits.
The Fair Competition Commission inspected 53 companies and discovered counterfeit goods in 9 of them.
TRA conducted inspections of 112 businesses, with 55 responding to calls for audit, while 57 failed to appear despite being formally summoned.
Twenty-one businesses were penalized for tax violations, leading to collections totaling 34.667m/-, while another 45 entities are currently under investigation for further tax-related issues.
The police registered 183 individuals during the operation to verify nationality and legal status. Among those identified were 135 Chinese nationals, 32 Tanzanians found to be operating businesses on behalf of foreigners, as well as individuals from the United Kingdom (1), Nigeria (1), Kenya (5), Egypt (2), Oman (2), India (2), and the Netherlands (1).
The Tanzania Bureau of Standards inspected 83 companies, with 70 found in compliance with quality standards and 13 in violation. The Immigration Department reviewed the status of 151 individuals and deported 12 foreigners who were found to be operating in breach of immigration regulations.
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