Foreign-owned businesses across Eswatini are being forced to shut down as the government intensifies a crackdown on enterprises owned by non-citizens. The move follows Parliament's passage of the Citizen Economic Empowerment Act, which aims to boost ownership and participation among emaSwati, the citizens of the small landlocked kingdom.
Law Sparks Heated Debate in Parliament
The legislation has ignited fierce debate among lawmakers, who are divided over how quickly foreign business owners should be made to leave. On Tuesday, Mbabane East MP Welcome Dlamini told Parliament that trade ministry officials had already begun enforcing the law by closing Asian-owned shops. Hhohho Regional MP Tanele Magagula called for immediate action, stating, "Businesses owned by foreigners in the rural areas must be seized immediately."
However, Dlamini raised concerns about whether local entrepreneurs were prepared to take over. He argued 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. "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.
Inspections and Compliance Concerns
The closures follow inspections launched by the trade ministry in August. Some businesses inspected in areas such as Mbabane were found to be fully compliant. However, 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.
Economic Hardship and Regional Pressure
Eswatini, a small landlocked kingdom in Southern Africa, faces significant economic hardship, with about 70% of its population living below the poverty line. The government says the new law is intended to expand economic opportunities for citizens, amid concerns that poverty and hunger could fuel further political unrest.
The crackdown comes amid growing pressure on foreign-owned businesses elsewhere in the region, particularly in neighbouring South Africa, where anti-immigration campaigns have led to raids, arrests, looting, and the disruption of foreign-run informal businesses. On July 30, 2026, the March and March movement intensified its campaign against undocumented immigrants, giving them a deadline to leave. Another protest followed on September 30. The campaigns have been accompanied by violence and attacks on foreign-owned businesses. Two Ghanaian and two Nigerian nationals were reported killed amid the tensions.
Kenya has also stepped up enforcement against foreign traders, bringing renewed attention to the treatment of foreign nationals and their businesses across the region.
