Tanzania Violates EAC, AfCFTA Protocol with Latest Restrictions
Tanzania has violated regional trade agreements under the East African Community (EAC) and the African Continental Free Trade Area (AfCFTA) by introducing new restrictions barring foreign companies and skilled workers from operating in selected sectors, a move likely to deepen tensions within the bloc.
The directive, which tightens controls on foreign participation in local business, has drawn criticism from regional partners who view it as a breach of the EAC Common Market Protocol, which guarantees the free movement of goods, services, capital and labour among member states.
Kenyan officials and trade analysts say the move could worsen trade relations between Nairobi and Dar es Salaam, already strained by a series of non-tariff barriers in recent years.
Tanzania has previously slapped taxes and restrictions on Kenyan exports such as eggs, dairy products and processed foods.
“The spirit of the EAC is being undermined,” said a senior Kenyan trade official who declined to be named. “We cannot have one member pursuing protectionist policies while the rest are pushing for integration.”
Trade data shows Kenya exported goods worth Ksh51.84 billion ($403 million) to Tanzania in 2024, down from KSh 55.96 billion the previous year. Tanzania’s exports to Kenya during the same period stood at Ksh42 billion, according to Kenya’s statistics office.
The new measures also appear to conflict with AfCFTA, a continent-wide pact designed to remove barriers to intra-African trade.
AfCFTA, which came into effect in 2021, aims to create a single market of 1.4 billion people by eliminating tariffs and fostering free movement.
The EAC, founded in 2000 and comprising seven member states, has struggled to resolve long-standing trade disputes.
A report by the EAC Secretariat earlier this year said at least 30 non-tariff barriers remain unresolved across the bloc.
Tanzania’s latest actions are likely to add friction at a time when African leaders are calling for deeper economic integration to boost regional trade and resilience.
gandae@businessdayafrica.org