By Enyichukwu Enemanna
The Government of Eswatini, previously known as Swaziland, has commenced a crackdown on foreign-owned businesses, closing down enterprises owned by Asian nationals.
This is in response to a parliamentary approval of a legislation, which seeks to increase ownership and participation by emaSwati, as citizens of the kingdom are referred.
The law comes after complaints from local traders that foreign-owned businesses are encroaching on traditional retail markets, increasing competition and threatening livelihoods.
The neighbouring South Africa has witnessed severe enforcement action in a bid to deepen citizens involvement in small scale businesses, including raids, arrests and the disruption of businesses belonging to foreigners, while East Africa’s Kenya has also stepped up action against foreign traders.
Eswatini is a small landlocked kingdom in southern Africa, led by absolute monarch King Mswati III, where about 70% of its population live below the poverty line.
Those angered by economic hardships have become increasingly vocal in demanding political reform.
Pro-democracy protests broke out in 2021- and the royal family has faced criticism by activists for its extravagant spending as many emaSwati with a job work in neighbouring South Africa and send their earnings home.
The government says the new law, known as Citizen Economic Empowerment Act is intended to expand economic opportunities, amid concerns that poverty and hunger could fuel further political unrest.
The implementation has however sparked a heated debate in Eswatini’s parliament, with MPs divided over how quickly foreign businesses owners should be required to leave.
Parliament on Wednesday 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 trade ministry could continue enforcing its provisions.
Closures of some businesses follow inspections launched by the ministry in August. Some businesses inspected in areas such as the capital, Mbabane, were found to be fully compliant.
Nonetheless 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.
The crackdown comes amid growing pressure on foreign-owned businesses elsewhere in the region, particularly in South Africa, which has experienced repeated outbreaks of xenophobic violence, often targeting African migrants.
