The Tanzanian government has raised concerns about foreign investors who enter the country as large-scale investors but later shift into small-scale trading, a move that violates investment agreements.
Speaking in Dar es Salaam on Friday, Minister for Industry and Trade, [name missing from original story, likely from Tanzanian government], said that some foreigners are misusing the investor status granted to them by the government to engage in businesses reserved for Tanzanians.
“We have noticed a growing trend where some people come into the country claiming they are investors. They get tax incentives and other benefits, but after a short time, they start doing petty trading in markets like Kariakoo,” the minister said.
According to the ministry, this practice not only denies Tanzanians job opportunities but also disrupts fair competition in local markets.
The minister revealed that the government will tighten the monitoring of investment licenses and take legal action against those who violate the law.
The Tanzania Investment Centre (TIC) and other regulatory bodies have been tasked to review permits and ensure that investors stick to their original commitments.
“The government supports foreign investment because it creates jobs and grows the economy. But we will not allow investors to misuse the system to compete with small Tanzanian traders,” he warned.
Tanzania has been attracting foreign investors in key sectors like mining, energy, agriculture, and manufacturing.
However, local business associations have complained that some investors, after benefiting from incentives, abandon their large projects and enter retail business, especially in busy areas such as Kariakoo Market in Dar es Salaam.
The government says it will continue encouraging genuine investment that supports industrial growth, technology transfer, and employment creation for Tanzanians.
