Government eyes tougher laws to protect local traders

MINISTER for Industry and Trade, Dr Selemani Jafo said yesterday that the government is considering to table a Bill in the National Assembly under the certificate of urgency, aiming at strengthening legal protection for local businesses. Dr Jafo said the proposed legislation, if approved, would address key challenges facing domestic entrepreneurs and ensure a more …

MINISTER for Industry and Trade, Dr Selemani Jafo said yesterday that the government is considering to table a Bill in the National Assembly under the certificate of urgency, aiming at strengthening legal protection for local businesses.

Dr Jafo said the proposed legislation, if approved, would address key challenges facing domestic entrepreneurs and ensure a more favorable business environment.

The minister was speaking shortly after receiving a report from a special committee formed to investigate the presence of foreign traders engaging in informal retail businesses, commonly known as “Umachinga” at Kariakoo Market.

He said the government is drafting the Bill, that will be tabled under the certificate of urgency in the House during the tabling of the Finance Bill, 2025.

Dr Jafo assured the public that the government will ensure the committee’s recommendations are implemented to safeguard economic and business opportunities created and retained by Tanzanians.

“The goal is to ensure that opportunities meant for Tanzanians remain with them. I have received a report from the special committee, it tells areas that need legal improvements and it clearly outlines business, which should be reserved for Tanzanians,” said Dr Jafo.

He added: “The report also shows businesses that are suitable to be operated by foreigners.”

The minister explained that the committee has also proposed amendments to various laws and that local business owners were fully engaged in providing their views on the matter.

“The committee has proposed amendments to the Companies Registration Act, Chapter 212 of 2002, the Licensing Act No. 25 of 1972, the Immigration Act Chapter 54 and its 2016 amendments, as well as the Investment Act which currently have loopholes being exploited to allow foreigners into sectors intended for Tanzanians,” he explained.

Dr Jafo noted that the government is continuing to draft the legal document based on the committee’s recommendations and that, if the urgent Bill gains approval, the provisions will be directly included in this year’s Finance Bill.

However, if the Bill does not get approval, the government will ensure the provisions are introduced as a separate Bill or discussed in coming parliamentary sessions.

“We are aware that this parliamentary session is particularly focused on financial matters. If time does not permit us to introduce a standalone Bill, we will explore the possibility of incorporating key provisions into the Finance Bill,” the Minister said.

He added: “Our goal is to establish stronger legal frameworks that seal loopholes currently exploited for unlawful gain. We are committed to ensuring these measures are included in the Finance Bill through the appropriate legislative procedures.”

He added that the measures are taken purposely to protect businesses operated by Tanzanians and establish a strong legal foundation for long-term development.

“There are certain businesses we propose to reserve exclusively for Tanzanians, in line with the principle of safeguarding local economic opportunities. This is an initial measure as we await broader discussions in upcoming parliamentary sessions,” he said.

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Presenting the findings, Committee Chairman, Mr Thabit Mussa said the committee was tasked with assessing whether traders in the Kariakoo area were operating in accordance with business laws, regulations and licensing procedures.