Authorities in Eswatini have begun shutting down businesses operated by Asian nationals following the introduction of legislation designed to give indigenous citizens greater control over the country’s commercial sector.
The enforcement follows Parliament’s passage of the Citizen Economic Empowerment Act, which seeks to strengthen emaSwati participation in business ownership and create more opportunities for domestic entrepreneurs.
The legislation was introduced after local merchants raised concerns that foreign investors were dominating traditional retail activities, intensifying market rivalry and undermining the survival of indigenous enterprises.
During parliamentary deliberations on Tuesday, Mbabane East legislator Welcome Dlamini disclosed that the Trade Ministry had already commenced closing Asian-owned establishments.
However, lawmakers disagreed over the period foreign operators should be allowed to transfer their businesses to local successors.
Hhohho Regional MP Tanele Magagula demanded immediate enforcement, insisting that foreign-controlled enterprises in rural communities should be taken over without delay.
Dlamini, however, advocated a three-year transition period, arguing that indigenous business operators needed sufficient time to acquire the knowledge and experience required to manage the establishments successfully.
Magagula opposed the proposal, questioning why local traders should continue experiencing financial difficulties while waiting for foreign competitors to exit the market.
Following the debate, Parliament settled on a minimum 12-month departure period for foreign business proprietors. However, the proposed arrangement may not automatically halt ongoing enforcement unless the legislation is formally revised.
The latest developments follow compliance exercises initiated by the Trade Ministry in August. Although several establishments, particularly in Mbabane, satisfied regulatory requirements, inspectors identified alleged labour-related and administrative shortcomings at some foreign-operated companies.
Workers reportedly raised concerns about inadequate rest periods, annual leave entitlements and unpaid overtime, with at least one complaint still being investigated.
The kingdom, which is grappling with widespread economic difficulties, has approximately 70 per cent of its population living below the poverty threshold.
Government officials maintain that the legislation will improve access to commercial opportunities and help address poverty and food insecurity, which could worsen political instability.
Similar restrictions against foreign entrepreneurs are gaining momentum in other African countries, notably South Africa and Kenya.
In South Africa, anti-immigration campaigns have resulted in police operations, detentions, destruction of property and interruptions to businesses operated by foreign nationals.
The March and March movement intensified its campaign against undocumented migrants on July 30, 2026, demanding their departure, before staging another demonstration on September 30.
The demonstrations have heightened tensions and exposed foreign-owned establishments to attacks.
Two Ghanaian nationals and two Nigerians have reportedly died amid the unrest.
Meanwhile, Kenya has increased regulatory action against foreign traders, further intensifying regional discussions about immigrant participation in domestic commerce and the protection of their business interests.
By: Magdalene Agyeiwaa Sarpong