A strike could disrupt the supply chain, leading to shortages of goods and affecting prices nationwide. Photo: Courtesy
Tanzania’s Kariakoo Braces for Strike: Traders Demand Justice as Economic Showdown Looms
Adonis Byemelwa
As flyers flood social media, heralding an impending strike by Kariakoo traders set for Monday, June 24, 2024, tension crackles in the air. Amid the mounting unrest, the traders’ leadership calls for calm, promising a pivotal announcement on that day. The stage is set for a dramatic showdown that could reshape the economic landscape.
Martin Mbwana, the Chairman of the Kariakoo Traders Association, acknowledged the flyers in a conversation with reporters today, June 22, 2024. He attributed the flyers to frustration over the actions of the Tanzania Revenue Authority (TRA).
However, he urged traders to remain calm, mentioning that they are in Dodoma addressing the issue and have scheduled a meeting with Finance Minister Dr. Mwigulu Nchemba on Monday, June 24.
Mbwana said that the Kariakoo Traders Board and the national traders’ leadership board would be involved. “I am aware of the ongoing issues in Kariakoo. I have received reports, and I understand the situation.
However, as leaders, we have taken the matter to the government and made a report. I ask the traders to remain calm until Monday at 10:00 PM when we will inform them of the outcomes of our meetings,” Mbwana stated. He acknowledged that traders are exhausted and hurt but emphasized that dialogue and negotiation are key.
Explaining the reason for the planned strike, Mbwana cited a continued crackdown despite Prime Minister Kassim Majaliwa’s order to halt such actions.
Addressing Kariakoo traders on May 15, 2023, after they called a strike over grievances related to the TRA, Majaliwa stated that no public servant has the authority to disregard orders from their leaders.
The grievances cited by the traders include TRA’s crackdowns on both traders and customers from neighboring countries who shop at the market, and the requirement to register warehouses storing goods, which has been burdensome and remains unresolved. According to Mbwana, the crackdown has intensified recently.
Another issue raised was the cancellation of debts owed to the government by traders for Value Added Tax (VAT), and the freezing of their accounts.
“There are many challenges that have angered the traders, but we believe that with the Finance Minister’s attentiveness and the Budget Committee of Parliament, we will have answers by Monday,” he said.
TRA’s Acting Director of Education and Taxpayer Communication, Hudson Kamoga, commented, “We have not received any complaints to address.” Kamoga noted that there is a procedure for submitting complaints that has not been followed.
“But if any TRA employee has acted unethically, there are procedures to address that as well,” he emphasized, adding that TRA performs its tax duties according to the law, and everything done is governed by legislation passed by Parliament.
Ilala District Commissioner Edward Mpogo acknowledged seeing the flyer and mentioned that the authorities are investigating. “We have tried to ask some traders, including their leaders, and they do not know anything about it,” Mpogo said.
He urged traders to continue their business as usual, noting that the government is attentive, which is why Prime Minister Majaliwa met with them and seven other ministers in May 2023.
On May 15 of the previous year, a significant strike took place in Kariakoo, lasting for three consecutive days until Majaliwa intervened by meeting with the traders at Mnazi Mmoja grounds.
He was accompanied by seven sectoral ministers, including Finance Minister Dr. Mwigulu Nchemba, Industry and Investment Minister Dr. Ashatu Kijaji, Home Affairs Minister Hamad Masauni, and the TRA Commissioner.
Prime Minister Majaliwa listened to the traders’ grievances and responded to some of them. He also formed a committee to resolve the conflict between the traders and the government, which included several members.
A traders’ strike in Kariakoo, one of the largest markets in Tanzania, would have significant economic and social repercussions. Kariakoo is a major commercial hub, attracting customers from within Tanzania and neighboring countries.
A strike could disrupt the supply chain, leading to shortages of goods and affecting prices nationwide. Small and medium-sized businesses relying on supplies from Kariakoo would suffer, potentially leading to temporary closures and loss of income for many families. Additionally, the strike could deter foreign customers, impacting cross-border trade and Tanzania’s reputation as a stable trading partner.
The strike would also highlight underlying issues between the traders and the Tanzania Revenue Authority (TRA). It points to a breakdown in communication and trust, where traders feel unheard and unfairly targeted by regulatory practices. This tension could escalate if not promptly and effectively addressed, leading to prolonged economic instability and social unrest.
To address the strike and its underlying causes, the government should take a multi-faceted approach. First, it must ensure transparent and inclusive dialogue between traders and the TRA. Setting up regular, structured meetings where traders can voice their concerns and receive timely feedback can rebuild trust. The government should also review the existing regulatory practices, particularly those that traders find burdensome, such as the frequent crackdowns and the requirement to register warehouses. Streamlining these processes and ensuring they are fair and efficient could alleviate some of the traders’ grievances.
Moreover, the government should consider establishing an independent body to oversee disputes between traders and regulatory authorities. This body could act as a mediator, ensuring that both parties’ interests are fairly represented and that resolutions are reached amicably.
In the long term, the government could invest in capacity-building programs for both TRA officials and traders, promoting a better understanding of tax laws and compliance requirements. These initiatives would not only improve compliance but also foster a more cooperative relationship between the government and the business community.
Addressing these issues promptly and effectively is crucial for maintaining economic stability and ensuring that Kariakoo remains a vibrant commercial center.
