Parliament's decision aims to shield local livelihoods while mitigating risks of political unrest linked to widespread poverty. Enforcement began following August trade ministry inspections in Mbabane and other areas, which revealed labor violations involving overtime, leave, and general working conditions. While some legislators demanded immediate asset seizures and others argued for a three-year training transition, enforcement will continue unless the timeline is formally enacted into law. This clampdown mirrors rising regional anti-foreign business pressures, including violent protests in neighboring South Africa.
Key points
The Citizen Economic Empowerment Act aims to transfer retail market opportunities to loca…: The Citizen Economic Empowerment Act aims to transfer retail market opportunities to local citizens living under widespread poverty.
Trade officials will continue shutting down foreign-owned shops unless parliament formall…: Trade officials will continue shutting down foreign-owned shops unless parliament formally amends the 12-month grace period into legislation.
Eswatini's commercial restrictions align with broader, increasingly tense crackdowns on f…: Eswatini's commercial restrictions align with broader, increasingly tense crackdowns on foreign enterprise operations across southern and eastern Africa.
Sources checked by our analysis pipeline: 1
- Published
Businesses owned by Asian nationals are being closed across Eswatini as the government cracks down on foreign-owned enterprises.
The crackdown follows Parliament's approval of the Citizen Economic Empowerment Act, which seeks to increase ownership and participation by emaSwati, as citizens in the kingdom are known.
The legislation follows complaints from local traders that foreign-owned businesses are encroaching on traditional retail markets, increasing competition and threatening livelihoods.
South Africa has witnessed more severe enforcement actions, including raids, arrests and the disruption of foreign-run informal businesses, while Kenya has also stepped up action against foreign traders.
Its implementation has sparked a heated debate in Parliament, with MPs divided over how quickly foreign businesses owners should be required to leave.
Mbabane East MP Welcome Dlamini told Parliament on Tuesday that officials from the trade ministry had already begun enforcing the law by closing Asian-owned shops.
Hhohho Regional MP Tanele Magagula called for immediate action, saying "Businesses owned by foreigners in the rural areas must be seized immediately."
But Dlamini questioned whether local entrepreneurs were ready to take over the businesses, arguing…
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