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Chinese traders big `threat` to EA

Discussion in 'Biashara, Uchumi na Ujasiriamali' started by BabuK, Aug 20, 2011.

  1. BabuK

    BabuK JF-Expert Member

    Aug 20, 2011
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    The increasing number of Chinese in East Africa’s major capital cities engaged in small businesses is viewed as posing a new threat to the implementation of common market protocol among East Africa Community partner states.
    “This is among the new challenges facing the region that needs individual partner states to look for a way of resolving it,” EAC Director of social sectors Mary Makoffu said.
    She was responding to queries raised by media personnel attending training on regional integration reporting here.
    The number of foreign traders, mainly Chinese and Indians, engaged in retail and petty trade has been on the increase in the region’s major cities like Dar es Salaam, Nairobi and Kampala, a move that has caused outcries from local businessmen in the region as governments seem to fail to contain the situation.
    Some people in the region are concerned that resentment against foreigners could threaten China’s strategy to win hearts and minds of people on the continent since in the recent past, Chinese nationals have flocked into Africa to do business.
    China is Africa’s top business partner, with a current USD107bn trade with the continent annually.
    Makoffu said that there is an increasing tendency by Chinese entering Africa to engage in small trade, like selling groundnuts and flowers, activities which can be done by locals.
    The EAC official said fears among East Africans exists as Chinese enter into the region under the umbrella of skilled labour, who work with Chinese construction firms.
    “But, on completion of their working tenure, they refuse to go back home, hence in-turn they engage in hawking or vending businesses in our cities,” she said.
    “As EAC we’ve no mandate to deal with this challenge as it’s in the hands of individual member countries since they have their own immigration laws,” she said.
    She added that the signed common market protocol is strictly for East African residents and not otherwise.
    Makoffu’s comment comes amid complaints by East Africans, who say that Chinese infiltration into the region’s labour market poses a problem at a time when the bloc is experiencing a large number of unemployed people.
    The problem of foreigners taking petty businesses or jobs that are a preserve of East Africans is a serious one; it increases unemployment, causes tensions (between nationals and foreigners) and arouses sentiments on xenophobia.
    The public has also been complaining about certain policy-oriented negative trends of the economic reform process—one of which is about foreigners who come to the region disguised as 'investors’ only to end up doing petty (Machinga) business on the streets.
    Some of these people stay in the EAC countries either as illegals others with corruptly obtained resident permits, doing nothing save ‘smuggling’, drug-trafficking and other kinds of dirty business which are likely to cause crimes in society.
    The EAC member states signed the common market protocol last year to allow movement of factors of production including labour and capital in the region.
    Under the protocol, factors of production entering the region must be subjected to the rules and regulations of the common market ab initial.
    However, in the present context, individual regional countries allow immigrants from other parts of the world to enter or work and stay in their jurisdictions irrespective of the fact that they have already signed protocols on common market that binds them.
    Earlier this year, the Tanzanian government through its deputy Industry, Trade and Marketing minister Lazaro Nyalandu expressed concern over reports that thousands of foreigners were engaged in petty trade saying they would be chucked off.
    However, since then, nothing has been done.

    Earlier Topic link Opinion: Tanzania?s expulsion of Chinese traders from Dar es Salaam underscores resentment of Asians in Africa - International Business Times
  2. babuwaloliondo

    babuwaloliondo JF-Expert Member

    Aug 20, 2011
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    Tuliyasema haya, ila hakuna aliyejali, narudia Jumuia ya Afrika Masahariki ni Bomu, tena bomu kubwa .
    Wanasiasa wetu wanaaendelea kuangamiza tanganyika yetu.
    Tuone sasa, maana hata vizazi vyao vitaathirika, hakuna atakayepona.
    Wametuingiza mkenge tena.

    VUVUZELA JF-Expert Member

    Aug 20, 2011
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    Tutakoma kuringa na hawa wazee wa mafeki/wachina/chinks