Eswatini gives unlicensed foreign businesses 12 months to vacate

Authorities in Eswatini have officially notified unlicensed foreign-owned businesses that they have 12 months to cease operations and vacate the country. This directive follows the enactment of the Citizen Economic Empowerment Act, a legislative measure designed to boost local ownership and participation in the national economy. While the government has established a one-year transition window, some members of parliament are pushing for more immediate enforcement, arguing that local entrepreneurs are ready to take over these commercial spaces.

The crackdown primarily targets enterprises owned by foreign nationals, with several reports highlighting a focus on businesses run by Asian nationals. This move follows sustained complaints from local emaSwati traders, who contend that they are being squeezed out of the market by foreign competition. Inspections conducted by the Ministry of Trade have already resulted in the closure of several shops. Beyond licensing issues, officials noted that these inspections revealed significant concerns regarding labor practices and poor working conditions within many foreign-operated establishments.

The legislative shift has sparked intense debate within the Eswatini Parliament. While the 12-month grace period is intended to provide a stable transition, hardline lawmakers have expressed skepticism, calling for the immediate removal of foreign traders in certain sectors to expedite economic relief for citizens. Proponents of the act argue that increasing indigenous control of the retail and small-business sectors is essential for addressing the country’s deepening economic challenges, where approximately 70% of the population currently lives below the poverty line.

This policy change in Eswatini reflects a growing trend across Southern Africa, where economic hardship and rising poverty levels have intensified scrutiny of foreign-owned businesses. Similar tensions have been observed in neighboring South Africa and as far as Kenya, often leading to diplomatic friction and concerns over potential civil unrest. For Eswatini, the government faces the delicate task of balancing the protection of local livelihoods with the need to maintain regional stability and avoid a total collapse of the retail supply chain during the transition period.