Eswatini’s parliament has agreed to grant foreign business owners a minimum of 12 months to exit the market, a decision reached after a contentious debate regarding the implementation of the Citizen Economic Empowerment Act. According to MyJoyOnline, the legislation is designed to increase ownership and participation by emaSwati, the local citizens, in response to complaints that foreign-owned enterprises are encroaching on traditional retail markets and threatening local livelihoods.
The parliamentary session, reported by Club of Mozambique, featured divided opinions among members of parliament on the speed of enforcement. Mbabane East MP Welcome Dlamini noted that trade ministry officials had already begun closing Asian-owned shops. He argued that local entrepreneurs might not be ready to take over immediately, suggesting a three-year period would allow foreigners to train their successors. Hhohho Regional MP Tanele Magagula countered that immediate action was necessary, questioning why local traders should wait while facing economic hardship.
NewZimbabwe reported that the closures follow inspections launched by the trade ministry in August. While some businesses in the capital, Mbabane, were found to be fully compliant, others raised concerns regarding working conditions and administrative practices. Employees at foreign-owned enterprises filed complaints about days off, annual leave, and overtime, with at least one case remaining under investigation. The government stated that the new law aims to expand economic opportunities, a move intended to mitigate political unrest driven by poverty and hunger.
Nile Post highlighted the broader regional context, noting that South Africa has witnessed more severe enforcement actions, including raids and arrests of foreign-run informal businesses, while Kenya has also stepped up its actions against foreign traders. Eswatini, a small landlocked kingdom led by King Mswati III, faces significant economic pressure, with approximately 70% of its population living below the poverty line. The kingdom has seen pro-democracy protests since 2021, with activists criticizing the royal family’s spending habits. Unless the law is formally amended to reflect the 12-month timeline agreed upon in parliament, the trade ministry may continue enforcing its current provisions.