The Kingdom of Eswatini has initiated a crackdown on foreign-owned businesses operating in the retail sector, particularly in rural areas. This move follows the approval of the Citizen Economic Empowerment Act, which aims to increase local ownership and participation in the economy. The legislation has sparked debate in Parliament, with members divided over the speed at which foreign business owners should vacate the country. Mbabane East MP Welcome Dlamini suggested a three-year transition period to allow locals to learn from their foreign counterparts, while Hhohho Regional MP Tanele Magagula advocated for immediate action. The trade ministry has already begun enforcing the law, closing Asian-owned shops, and investigations have raised concerns about working conditions and administrative practices at foreign-owned enterprises. The government's actions are part of a broader effort to address economic hardship, as approximately 70% of Eswatini's population lives below the poverty line.
Eswatini, a small landlocked kingdom in Southern Africa, has faced significant economic challenges, with many of its citizens living in poverty. The new law is intended to create more opportunities for local entrepreneurs and prevent further political unrest. This crackdown on foreign-owned businesses is part of a broader trend in the region, with neighboring countries like South Africa and Kenya also increasing enforcement against foreign traders. The campaign against foreign-owned businesses has been accompanied by violence and attacks, resulting in reported deaths of foreign nationals in some instances.
The Eswatini government's decision to give foreign business owners a 12-month grace period to comply with the Citizen Economic Empowerment Act follows inspections launched by the trade ministry in August. While some businesses were found to be fully compliant, concerns about working conditions and administrative practices at foreign-owned enterprises have been raised. The government's efforts to promote local economic empowerment come amid growing pressure on foreign-owned businesses across the region, particularly in neighboring South Africa, where anti-immigration campaigns have led to raids, arrests, looting, and disruptions of informal businesses.
In response to the crackdown, the March and March movement in South Africa has intensified its campaign against undocumented immigrants, giving them a deadline to leave. Kenya has also stepped up enforcement against foreign traders, drawing renewed attention to the treatment of foreign nationals and their businesses across the region. The African continent continues to grapple with issues related to immigration, economic empowerment, and political stability, as governments seek to balance the needs of local populations with the contributions of foreign-owned businesses. For more news from the African continent, visit BBC Africa's website or follow them on Twitter, Facebook, or Instagram.