Businesses owned by Asian nationals are being closed across Eswatini, formerly known as Swaziland, as the government cracks down on foreign-owned enterprises. The move follows parliament's approval of a law, the Citizen Economic Empowerment Act, that seeks to increase ownership and participation by emaSwati, as the kingdom's citizens are known. Parliament has since agreed that foreign business owners should be given at least 12 months to leave, although unless the law is formally amended to reflect that timeline, the trade ministry could continue enforcing its provisions as written.
Supporters argue that the law answers real economic pain. The legislation followed complaints from local traders that foreign-owned businesses were encroaching on traditional retail markets, increasing competition and threatening their livelihoods. Eswatini is a small landlocked kingdom in southern Africa led by absolute monarch King Mswati III, and about 70% of its population live below the poverty line. The government says the law is intended to expand economic opportunities amid concerns that poverty and hunger could fuel political unrest, which has already surfaced in pro-democracy protests that broke out in 2021. Hhohho Regional MP Tanele Magagula called for immediate action, arguing that struggling local traders should not have to wait. The trade ministry began inspections in August, and while some businesses were found fully compliant, the inspections raised concerns about working conditions, including employee complaints over days off, annual leave and overtime, with at least one case still under investigation.
Critics and cautious lawmakers make a different case. The implementation has sparked a heated debate in parliament, with MPs divided over how quickly foreign owners should be required to leave. Mbabane East MP Welcome Dlamini told parliament that officials had already begun enforcing the law by closing Asian-owned shops, and he questioned whether local entrepreneurs were ready to take over the businesses. He asked why foreigners could not be given at least three years so that emaSwati could learn to run the businesses, arguing they should train their successors. The 12-month period parliament agreed is not yet reflected in the law, which leaves foreign owners facing uncertainty about whether the ministry will honour it. The regional record also gives reason for concern, since South Africa has seen repeated outbreaks of xenophobic violence, including raids, arrests and disruption of foreign-run informal businesses.
What happens in Eswatini matters because it is part of a wider regional pattern. South Africa has experienced violent campaigns against migrants and foreign-owned businesses, with anti-migrant groups setting a 30 June deadline for undocumented migrants to leave the country, and 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. In Eswatini, where many emaSwati with jobs work in neighbouring South Africa and send their earnings home, economic hardship has made activists increasingly vocal in their demands for political reform, and the royal family has faced criticism for extravagant spending.
Eswatini's government says the law will open opportunities for its citizens, and parliament has tried to soften it with a 12-month window. Whether local traders can fill the gap, and whether the timeline is honoured, will decide if the policy helps ordinary emaSwati or adds to regional tension.
