People throng a street in Dar es Salaam’s bustling Kariakoo shopping area. PHOTO | FILE
Dar es Salaam. A government task force has identified 183 foreign nationals, including 135 Chinese, operating businesses illegally in Dar es Salaam’s Kariakoo area.
The findings were presented on Friday, 6 June 2025, by a special committee entrusted with auditing businesses owned by foreigners when handling its reports to the Minister of Industry and Trade, Dr Selemani Jafo.
The task force, formed on 5 February 2025, was acting on President Samia Suluhu Hassan’s directives, who ordered an investigation into foreign nationals conducting business activities intended for locals.
Of the 183 foreigners identified, other nationalities include Kenya (5), Nigeria (5), Egypt (2), India (2), Yemen (2), the United Kingdom (2), the Netherlands (1), along with 32 Tanzanians alleged to be used as business fronts.
“You’ll find a foreigner running a shop, but when you check the registration, the name listed is that of a Tanzanian,” said the task force chairman, Mr Massa.
“However, when you look at the Tanzanians, it is clear they do not have the means to own the shop and have no money in their accounts,” he added.
The task force conducted inspections from 5 to 30 May, focusing on verifying business licences, tax compliance, product quality, and identifying counterfeit goods.
Widespread violations
Mr Massa reported that 112 shops were found evading taxes, with 55 already referred to the Tanzania Revenue Authority (TRA) for assessment.
In addition, he said 73 out of 83 companies failed to meet product quality standards.
Furthermore, he said nine out of 23 companies inspected by the Fair Competition Commission (FCC) were producing counterfeit goods, including over 6,600 headscarves, 1,692 pairs of shoes, men’s vests, and underwear.
“These inspections have resulted in the government collecting over Sh400 million, including Sh346 million in taxes and the remainder in fines,” disclosed Mr Massa.
The task force included officials from Immigration, TRA, the Tanzania Bureau of Standards (TBS), the Labour Department, the Prevention and Combating of Corruption Bureau (PCCB), the Business Registration and Licensing Agency (BRELA), the Fair Competition Commission (FCC), the Tanzania Trade Development Authority (TanTrade), and the Regional Commissioner’s Office.
Recommendations and government response
The report recommends a clear business law to regulate foreign involvement, improved coordination between government agencies, and education for local traders on business laws to prevent misuse.
“There is a need to educate local traders about business laws so that they can conduct business lawfully and avoid being used to benefit foreign nationals,” emphasised Mr Massa.
Responding, Minister Jafo commended the task force and committed to fast-tracking legislation to address the loopholes.
“I will do my best to present this law under a certificate of urgency because although this is a budget session, your report clearly shows the need to expedite it,” he said.
Voices from the business community
Local business leaders welcomed the findings and urged swift implementation of the recommendations.
“There came a point where these foreigners were even changing TIN (Taxpayer Identification Number) details to evade taxes, leaving that burden to locals when they left,” said the chairman of the Business Community, Severine Mushi.
“Without this intervention, many of us would have given up and returned to farming. We emphasise the need for strong laws to curb such practices,” said a trader, Mr Renatus Mlelwa.
Another trader, Ms Martha Mwaijande, praised the government’s move, saying: “This report confirms what we’ve been saying for years.”
“If implemented, we’ll finally be able to compete on fair grounds. Right now, we can’t match the Chinese traders. This puts our survival at risk,” he emphasised.
