This archive report was first published on 14 July 2019.
Published on July 14, 2019, the issue of free trade and its impact on local economies has been a contentious topic globally. In Kenya, Starehe MP Charles Njagua, popularly known as Jaguar, recently found himself in hot water for calling on the government to deport foreign nationals dominating small businesses in Nairobi.
Jaguar's concerns are not unfounded, as the influx of foreign nationals has led to the domination of local markets, leaving many Kenyans without a source of livelihood. The MP's call for the deportation of Chinese nationals and other foreigners carrying out businesses in Gikomba within 24 hours has sparked debate on the merits of free trade and the protection of local interests.
While the concept of free trade is a noble idea, it has often resulted in serious conflicts or even wars. The herders of Abraham and his nephew Lot got into constant battles over grazing land, forcing the two relatives to amicably part company. Similarly, the Brexit fiasco in the UK has cost several top leaders their political careers due to the socio-economic impact of foreigners.
Across the Atlantic, the trade war between the USA and China has threatened to destabilize international trade and breach global peace. President Trump's efforts to regain and protect the American market from the influx of foreign goods and people have led to stringent tariffs on foreign goods, particularly those from China.
Back home, Information and Communications Cabinet Secretary Joe Mucheru recently expressed a wish for a Kenyan to take over as Safaricom CEO following the death of Bob Collymore. This raises questions about whether Kenyans are not up to the task of leading multinational companies.
On a more positive note, Africa recently took a bold step towards integrating its trade zone with the operational phase of the African Continental Free Trade Area (AfCFTA) launched on July 7 by the Heads of State and Government of the African Union.
However, the protectionist spirit is not unique to Njagua. The socio-economic dangers accruing from unregulated influx of immigrants are real, and several nations have experienced xenophobic confrontations between citizens and foreigners.
We must carefully vet all these 'international investors' and only allow those that add value. We must not sacrifice the socio-economic welfare of Kenyans at the altar of one-sided free trade.
