KEY POINTS
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Eswatini has agreed to give foreign business owners at least 12 months to leave.
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The new law seeks to increase business ownership by emaSwati.
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Inspections have raised concerns about labour practices in some foreign-owned businesses.
Eswatini’s parliament has agreed to give foreign business owners at least 12 months to leave the country as the government moves to increase local participation in the economy.
The decision follows the approval of the Citizen Economic Empowerment Act, which seeks to give more business opportunities to emaSwati, the name used for citizens of the southern African kingdom.
The legislation has triggered the closure of businesses owned by Asian nationals, with the trade ministry already carrying out enforcement activities. The government says the measures are intended to protect local traders and expand economic opportunities for citizens.
However, the implementation has generated disagreement among lawmakers, particularly over whether foreign business owners should be given enough time to prepare local entrepreneurs to take over their operations.
Lawmakers disagree over deadline
The debate became heated in parliament as legislators considered how quickly foreign-owned businesses should be required to leave.
Mbabane East MP Welcome Dlamini said trade ministry officials had already started enforcing the law by shutting down Asian-owned shops.
Dlamini questioned whether local entrepreneurs were sufficiently prepared to take over the businesses and argued that foreign operators should be allowed to train their successors.
He proposed giving them at least three years to transfer their knowledge and business operations to emaSwati.
However, Hhohho Regional MP Tanele Magagula rejected the proposal, arguing that local traders facing economic difficulties should not be made to wait several years before gaining access to business opportunities.
Magagula called for immediate action, saying foreign-owned businesses in rural areas should be seized.
Following the debate, parliament agreed that foreign business owners should be given at least 12 months to leave.
However, the BBC reported that unless the legislation is formally amended to reflect the agreed timeline, the trade ministry could continue enforcing the existing provisions.
Inspections uncover business and labour concerns
The crackdown follows inspections launched by Eswatini’s trade ministry in August to assess foreign-owned enterprises.
Some businesses inspected in areas including the capital, Mbabane, were found to be fully compliant with existing requirements.
However, the exercise also raised concerns about working conditions and administrative practices in some foreign-owned businesses.
Employees reportedly complained about issues involving days off, annual leave and overtime payments. At least one case remains under investigation.
The inspections have therefore brought attention not only to business ownership but also to employment practices within the affected enterprises.
Poverty and economic pressure drive policy
The new law comes amid economic difficulties in Eswatini, where about 70 per cent of the population live below the poverty line.
Local traders have complained that foreign-owned businesses are expanding into traditional retail markets, intensifying competition and threatening the livelihoods of emaSwati entrepreneurs.
The government says expanding citizens’ participation in business could help address economic hardship and reduce the risk of further unrest.
Eswatini has also experienced growing demands for political reform. Pro-democracy protests broke out in 2021, with activists criticising the royal family’s spending amid widespread poverty.
Many employed emaSwati also work in neighbouring South Africa and send money home to support their families.
Regional crackdown on foreign businesses
Eswatini’s decision comes amid increased scrutiny of foreign-owned businesses across parts of Africa, particularly in South Africa and Kenya.
South Africa has witnessed raids, arrests and disruptions targeting foreign-run informal businesses, alongside campaigns by anti-migrant groups demanding that undocumented migrants leave the country.
Some of these campaigns have been accompanied by violence and attacks on foreign-owned shops. Two Ghanaian nationals and two Nigerians were reported killed amid the tensions.
Kenya has also intensified enforcement against foreign traders, adding to concerns about the treatment of foreign nationals operating businesses across the region.
Eswatini’s 12-month deadline adds to the growing debate over local economic empowerment, foreign investment and the rights of foreign business owners in African countries.
