By G. Madaraka Nyerere
The growing presence of foreign traders operating in Dar es Salaam’s Kariakoo market poses significant threats to the business sustainability of local Tanzanian traders.
Although traders blame Chinese nationals—who are said to make up 90 percent of foreign traders—authorities argue the issue is overstated. Out of over 42,000 business licenses issued in Dar es Salaam, only 250 belong to foreign-run businesses.
That small number may be misleading. Tanzanian traders argue that foreign competitors have access to significant financial resources, enabling them to undercut local prices. Additionally, it’s claimed that those without such capital receive credit from suppliers in China—an advantage Tanzanian traders do not enjoy.
“I’m forced to reconsider my patriotic duty in light of basic human instincts—survival, self-preservation and self-interest. Should I renew my patriotism by buying Chinese products from Tanzanian traders at inevitably higher prices, or prioritise myself and buy Chinese products from Chinese traders at lower costs?”
For most Tanzanians, the choice is clear—they set aside patriotism and opt for lower prices. However, this seemingly simple decision could have serious long-term consequences.
The government task force assigned to investigate the issue and offer recommendations found licensing and immigration irregularities that have allowed the problem to continue. Foreign nationals are permitted to operate only wholesale businesses, but investigations show some have opened retail outlets in Kariakoo—sometimes using Tanzanians to register their businesses. In many ways, Tanzanians themselves have contributed to the crisis.
Without a deliberate policy review, a future backlash against both foreign traders and the government seems likely. The more Tanzanian traders are driven out of Kariakoo, the greater the risk of rising xenophobic sentiments. Eventually, that resentment may turn toward the government for failing to implement safeguards to help local traders withstand stronger competition.
As recommended by the task force, safeguards should prohibit foreigners from operating in certain types of businesses. Ideally, the retail and wholesale sectors should be reserved exclusively for Tanzanians, while foreign investors should be limited to participating only in the productive sectors of the economy.
What matters most is that, as in any country, being a citizen of Tanzania should come with certain advantages. This is not a xenophobic position, but rather an insurance policy—one that keeps nearly 42,000 traders in Dar es Salaam focused on earning a living, not stirring unrest.
Policy changes will mean little without strict enforcement of the new measures. The current situation exists largely because immigration and licensing rules have not been properly enforced.
