Eswatini gives illegal foreign businesses 12 months to leave

The Eswatini government is giving foreign businesses a 12-month window to vacate the country as it enforces the Citizen Economic Empowerment Act, which aims to bolster local ownership and participation. This crackdown comes after Parliament's approval of the legislation, prompted by concerns from local traders that foreign-owned enterprises are encroaching on their retail markets, intensifying competition and jeopardizing livelihoods.

Similar measures have been observed in South Africa and Kenya, where authorities have conducted raids, arrests, and disrupted foreign-run businesses. The enforcement of this Act has ignited a contentious debate in Parliament, with MPs divided on the urgency of the timeline for foreign business owners to depart. Some MPs, like Mbabane East MP Welcome Dlamini, argue that foreign business owners should be given more time to train their successors, suggesting a longer period beyond the initially proposed 12 months.

However, others, like Hhohho Regional MP Tanele Magagula, insist on immediate action, asserting that struggling local traders should not be made to wait while emaSwati, the citizens of Eswatini, continue to suffer economically. The Trade Ministry initiated inspections in August, finding that some businesses were compliant, but also highlighting issues like subpar working conditions and administrative practices at foreign-owned establishments.

Investigations into at least one case are ongoing. Eswatini, a landlocked kingdom in Southern Africa, confronts substantial economic challenges, with roughly 70% of its population residing below the poverty line.