Eswatini Gives Foreign-Owned Businesses 12 Months to Exit Under New Empowerment Law

Businesses owned by Asian nationals are being shut down across Eswatini as the government intensifies a crackdown on foreign-owned enterprises.

The move follows Parliament’s approval of the Citizen Economic Empowerment Act, legislation designed to boost ownership and participation by emaSwati, as citizens of the kingdom are known.

The law responds to complaints from local traders who say foreign-owned businesses are encroaching on traditional retail markets, intensifying competition and threatening local livelihoods.

Eswatini’s approach mirrors tougher enforcement elsewhere in the region. South Africa has carried out raids, arrests and disruptions of foreign-run informal businesses, while Kenya has likewise increased pressure on foreign traders.

Implementation of the law has sparked heated debate in Parliament, with members of Parliament 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.”

Dlamini, however, questioned whether local entrepreneurs were ready to take over the businesses, arguing that foreign 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.

Magagula rejected the suggestion, questioning why struggling local traders should have to wait while continuing to suffer economically.

“Why must we wait for three years while emaSwati suffer?” she asked.

Parliament ultimately agreed that foreign business owners should be granted at least 12 months to leave.

Unless the law is formally amended to reflect that timeline, however, the ministry could continue enforcing its provisions as written.

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.

The inspections also raised concerns about working conditions and administrative practices at foreign-owned enterprises, including employee complaints regarding 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 roughly 70% of its population living below the poverty line.

The government says the new law is intended to expand economic opportunities for citizens, amid concerns that poverty and hunger could fuel further political unrest.

The crackdown unfolds amid growing pressure on foreign-owned businesses elsewhere in the region, particularly in neighbouring South Africa, where anti-immigration campaigns have led to raids, arrests, looting and the disruption of foreign-run informal businesses.

On July 30, 2026, the March and March movement intensified its campaign against undocumented immigrants, setting a deadline for them to leave. Another protest followed on September 30.

The campaigns have been accompanied by violence and attacks on foreign-owned businesses.

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.

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