Eswatini grants 12-month exit window for foreign business owners
Parliament set a one-year deadline after debates over how quickly Asian-run shops should close under the new Citizen Economic Empowerment Act.
By Sanjay Caldwell ·
Eswatini’s Parliament has agreed to give foreign business owners at least 12 months to exit the country under a new economic law. The decision follows intense debate over how quickly Asian-owned shops should be closed as the government enforces the Citizen Economic Empowerment Act.
The legislation aims to increase ownership and participation by emaSwati citizens in the retail sector. It responds to complaints from local traders who argued that foreign businesses were encroaching on traditional markets and threatening local livelihoods through increased competition.
Mbabane East MP Welcome Dlamini informed Parliament on Tuesday that trade ministry officials had already begun closing Asian-owned shops. Hhohho Regional MP Tanele Magagula urged for faster action, stating that businesses owned by foreigners in rural areas must be seized immediately.
Dlamini questioned whether local entrepreneurs were prepared to take over the operations. He argued that foreign owners should be given three years to train their successors so emaSwati could learn to run the businesses. Magagula rejected this timeline, asking why struggling local traders should wait three years while suffering economically.
The compromise of a 12-month period does not yet reflect a formal amendment to the law. Consequently, the trade ministry may continue enforcing the original, stricter provisions until the legal text is updated. This creates uncertainty for the remaining foreign-owned enterprises currently operating in the kingdom.
The enforcement process began with inspections launched by the trade ministry in August. While some businesses in areas like Mbabane were found to be fully compliant, the reviews raised concerns about working conditions. Employees at foreign-owned enterprises filed complaints regarding days off, annual leave, and overtime. At least one case remains under investigation.
The crackdown occurs as Eswatini faces high economic hardship, with approximately 70% of its population living below the poverty line. The government states the law is designed to expand economic opportunities for citizens amid fears that poverty and hunger could fuel political unrest. Neighboring South Africa has recently seen similar tensions, including raids and arrests targeting foreign-run informal businesses.
