In a move aimed at boosting local trade and alleviating poverty, the government of Eswatini has given foreign businesses operating without legal documentation 12 months to either comply with local laws or face closure. This decision follows the approval of the Citizen Economic Empowerment Act, which seeks to increase economic participation by Swazi citizens. The legislation was passed in response to complaints from local traders who alleged that foreign-owned businesses were encroaching on traditional retail markets, increasing competition and threatening livelihoods.
The enforcement of this law has sparked a debate in Parliament, with some members calling for immediate action while others argue for a more gradual approach to allow for proper succession training. Mbabane East MP Welcome Dlamini proposed a three-year transition period, arguing that local entrepreneurs may not be ready to take over foreign businesses immediately. However, Hhohho Regional MP Tanele Magagula urged for swift action, stating, "Businesses owned by foreigners in the rural areas must be seized immediately."
The trade ministry has already begun enforcing the law, with Asian-owned shops reportedly being closed across Eswatini. The inspections launched by the trade ministry in August also raised concerns about working conditions and administrative practices at foreign-owned enterprises. At least one case remains under investigation.
Eswatini, a small landlocked kingdom in Southern Africa, faces significant economic hardship, with approximately 70% of its population living below the poverty line. The government hopes that the new law will expand economic opportunities for citizens, as concerns grow about potential political unrest due to poverty and hunger. This crackdown on foreign businesses is part of a broader regional trend, with neighboring South Africa and Kenya also stepping up actions against foreign traders.
The enforcement of this law comes amid growing pressure on foreign-owned businesses across the region, particularly in South Africa where anti-immigration campaigns have led to raids, arrests, looting, and the disruption of foreign-run informal businesses. The March and March movement in South Africa has intensified its campaign against undocumented immigrants, giving them a deadline to leave, and protests have been accompanied by violence and attacks on foreign-owned businesses. In Kenya, there has been renewed attention on the treatment of foreign nationals and their businesses.