Eswatini closes Asian-run shops under new local ownership law

Asian-owned retail shops across Eswatini are closing as the government enforces a new law requiring foreign businesses to transfer ownership to local citizens. The Citizen Economic Empowerment Act was approved by Parliament to increase economic participation by emaSwati, the kingdom’s citizens. Local traders had long complained that foreign-owned enterprises were squeezing traditional markets and threatening local livelihoods through increased competition.

The legislative push follows a pattern of stricter enforcement against foreign businesses in the region. South Africa has seen raids, arrests, and disruptions to informal foreign-run businesses, while Kenya has also intensified actions against foreign traders. In Eswatini, the debate over implementation speed became a central issue in Parliament. Lawmakers were divided on how quickly foreign owners should be required to leave.

On Tuesday, Mbabane East MP Welcome Dlamini informed Parliament that trade ministry officials had already begun closing shops. Hhohho Regional MP Tanele Magagula pushed for faster action, arguing that businesses owned by foreigners in rural areas must be seized immediately. Dlamini countered that local entrepreneurs needed time to prepare, suggesting a three-year window for foreigners to train their successors.

Magagula rejected the longer timeline, asking why local traders should wait while suffering economically. Parliament eventually agreed that foreign business owners should be given at least 12 months to exit. However, the law has not been formally amended to reflect this specific timeline, leaving room for the ministry to continue enforcing its original provisions.

The closures stem from inspections launched by the trade ministry in August. While some businesses in Mbabane were found fully compliant, the inspections raised concerns about working conditions and administrative practices. Employees filed complaints regarding days off, annual leave, and overtime. At least one case remains under investigation.

Eswatini is a small, landlocked kingdom in Southern Africa where about 70% of the population lives below the poverty line. The government states the law is designed to expand economic opportunities for citizens. Officials say addressing poverty and hunger is essential to preventing further political unrest. The crackdown coincides with growing pressure on foreign-owned businesses across the region, particularly in neighboring South Africa, where anti-immigration campaigns have led to violence and attacks on foreign shops. Two Ghanaian and two Nigerian nationals were reported killed during those tensions.