Eswatini Gives Foreign-Owned Businesses 12 Months To Exit

The Government of Eswatini has moved to tighten control over foreign-owned businesses, with parliament agreeing that foreign traders should be given at least 12 months to leave the country under a new economic empowerment law.

The move has already triggered the closure of several businesses, particularly those owned by Asian nationals, as authorities begin implementing legislation designed to give emaSwati, as Eswatini citizens are known, greater control of the country’s economy.

The new law follows growing complaints from local business operators who accuse foreign traders of dominating traditional retail markets, creating stiff competition and threatening the survival of locally owned enterprises.

The issue has also attracted attention in other African countries, including South Africa and Kenya, where governments have intensified enforcement measures against certain foreign-owned businesses.

In Eswatini, the Citizen Economic Empowerment Act has sparked heated debate among lawmakers, particularly over how much time foreign business owners should be given to transfer their operations to local entrepreneurs.

During parliamentary discussions on Tuesday, Mbabane East MP Welcome Dlamini revealed that officials from the Ministry of Trade had already started enforcing the legislation, resulting in the closure of some Asian-owned shops.

Hhohho Regional MP Tanele Magagula pushed for tougher measures, arguing that foreign-owned businesses operating in rural communities should be taken over immediately.

However, Dlamini questioned whether local entrepreneurs were sufficiently prepared to run the businesses, suggesting that foreign operators should be allowed three years to train and equip their replacements.

He argued that a longer transition period would help emaSwati acquire the necessary business management skills before foreign owners exit the market.

Magagula opposed the proposal, insisting that local traders facing economic difficulties could not afford to wait another three years for opportunities to open up.

Following the debate, parliament settled on a minimum 12-month period for foreign business owners to leave.

However, uncertainty remains over the implementation of the resolution, as the Ministry of Trade could continue enforcing the existing legal provisions unless the legislation is formally amended.

The government began inspecting foreign-owned businesses in August, with some establishments in the capital, Mbabane, found to be operating within the law.

The inspections also exposed concerns about employment practices, including complaints from workers over overtime payments, annual leave and days off. At least one matter is still under investigation.

The crackdown comes as economic pressure and demands for greater opportunities for citizens continue to grow in the kingdom, where poverty remains widespread.

Eswatini, formerly known as Swaziland, is ruled by King Mswati III. The country has faced growing political pressure since pro-democracy protests erupted in 2021, with activists criticising the monarchy’s spending amid widespread economic hardship.

Many emaSwati working in neighbouring South Africa reportedly send money home to support their families.

Across the region, foreign-owned businesses have increasingly become part of heated debates about employment, economic opportunities and immigration.

South Africa has experienced repeated anti-immigrant campaigns, some accompanied by attacks on foreign nationals and their businesses. Campaign groups have also issued deadlines demanding that undocumented migrants leave the country.

The tensions have been linked to deadly incidents, with two Ghanaian and two Nigerian nationals reportedly killed.

Kenya has also intensified enforcement against foreign traders, adding to growing regional debate over the role of foreign nationals in local economies.