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 of 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 business 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.”
However, Mr Dlamini questioned whether local entrepreneurs were ready to take over the businesses, arguing that foreign business owners 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.
Ms Magagula rejected the suggestion, questioning why struggling local traders should have to wait while emaSwati continued to suffer economically.
“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 existing provisions.
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.
Eswatini, a small landlocked kingdom in Southern Africa, faces significant economic hardship, with about 70 per cent of its population living below the poverty line.
— BBC
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