Eswatini gives illegal foreign businesses 12 months to leave country

Businesses owned by Asian nationals are being closed across Eswatini, previously known as Swaziland, as the government cracks down on foreign-owned enterprises.

It follows Parliament’s approval of a law that seeks to increase ownership and participation by emaSwati, as citizens of the kingdom are known.

The legislation comes after complaints from local traders that foreign-owned businesses are encroaching on traditional retail markets, increasing competition and threatening livelihoods.

South Africa has witnessed more severe enforcement action, including raids, arrests and the disruption of foreign-run informal businesses, while Kenya has also stepped up action against foreign traders.

Eswatini is a small landlocked kingdom in Southern Africa, led by absolute monarch King Mswati III, where about 70% of its population live below the poverty line.

Those angered by economic hardships have become increasingly vocal in demanding political reform.

Pro-democracy protests broke out in 2021- and the royal family has faced criticism by activists for its extravagant spending as many emaSwati with a job work in neighbouring South Africa and send their earnings home.

The government says the new law is intended to expand economic opportunities, amid concerns that poverty and hunger could fuel further political unrest.

But the implementation of the Citizen Economic Empowerment Act has sparked a heated debate in Eswatini’s Parliament, with MPs divided over how quickly foreign businesses owners should be required to leave.

On Tuesday, Mbabane East MP Welcome Dlamini said that officials from the Trade Ministry had already begun enforcing the law by closing Asian-owned shops.

Hhohho Regional MP Tanele Magagula called for immediate action, saying: “Businesses owned by foreigners in the rural areas must be seized immediately.”

Dlamini questioned whether local entrepreneurs were ready to take over the businesses, arguing that foreigners should be given time to train their successors.

“Why can’t we give the Asians or foreigners at least three years before ‘kicking them’ out so that emaSwati can learn to run the businesses?” he asked.

Magagula rejected the suggestion, questioning why struggling local traders should have to wait while struggling economically.

“Why must we wait for three years while emaSwati suffer?” she asked.

Parliament subsequently agreed that foreign business owners should be given at least 12 months to leave.

However, unless the law is formally amended to reflect that timeline, the ministry could continue enforcing its provisions.

The closures follow inspections launched by the Trade Ministry in August. Some businesses inspected in areas such as the capital, Mbabane, were found to be fully compliant.

Nonetheless the inspections also raised concerns about working conditions and administrative practices at foreign-owned enterprises, including complaints by employees over days off, annual leave and overtime. At least one case remains under investigation.

The crackdown comes amid growing pressure on foreign-owned businesses elsewhere in the region, particularly in South Africa, which has experienced repeated outbreaks of xenophobic violence, often targeting African migrants.

Anti-migrant groups there set 30 June as a deadline for undocumented migrants to leave the country and their campaigns this year has often been accompanied by violence and attacks on foreign-owned businesses.