Tanzania’s private sector urges government to address competition between local, foreign traders

Dar es Salaam. Growing concerns over foreign traders encroaching on businesses reserved for Tanzanians have led the Tanzania Private Sector Federation (TPSF) to call for urgent government intervention.

At the Women Entrepreneurs’ Industry and Trade Awards on Wednesday evening, TPSF President Ms Angelina Ngalula warned that Chinese investors, who initially enter the market as investors, are increasingly engaging in businesses intended for local traders.

Ms Ngalula emphasised that this trend threatens the survival of Tanzanian entrepreneurs and undermines the nation’s economic sovereignty.

“There is no way that China can compete with Tanzania, nor can a Chinese trader compete with a Tanzanian trader in our business activities. China has a massive economy; we cannot be compared. How can a Chinese trader come here and compete with a Tanzanian trader?” she questioned.

She urged the government to enforce stricter regulations to prevent foreign investors from operating in sectors designated for locals.

In February of this year, the Minister for Industry and Trade, Dr Selemani Jafo, appointed a 15-member special committee to investigate the presence of foreign traders involved in informal retail businesses, commonly known as “Umachinga,” in Kariakoo Market and other areas in Tanzania.

Also read: Investigation into foreign traders in Kariakoo nears completion

This decision followed President Samia Suluhu Hassan’s response to complaints from local traders, particularly those in Kariakoo, about the increasing number of foreigners operating in the informal retail sector. 

Dr Jafo explained that instead of focusing on large-scale investment projects, some foreigners engage in informal retail trade, which negatively impacts local businesses. During the event, Dr Jafo echoed Ms Ngalula’s sentiments, affirming the government’s commitment to protecting local businesses.

He acknowledged the growing concerns and assured entrepreneurs that authorities are taking measures to curb unfair competition.

He said that the government, through the ministry of Industry and Trade, has implemented strategies aimed at overseeing business activities for all individuals, including women entrepreneurs, who are receiving significant support due to their expertise in managing capital funds.

“The government continues to improve the business environment. However, women are a formidable force, and we recognize your exceptional skills in managing businesses, capital, and finances. Therefore, the government will support you anytime and anywhere you demonstrate the determination to advance in business for the benefit of the nation,” Dr Jafo said.

Ms Ngalula also urged women entrepreneurs to remain vigilant, uphold sound business principles, and advocate for their rightful place in the economy.

The Women Entrepreneurs’ Industry and Trade Awards were organised by the Tanzania Women Chamber of Commerce (TWCC). During the event, President Samia Suluhu Hassan was presented with a special award in recognition of her support for women and youth entrepreneurship.