Eswatini Shuts Down Asian-Owned Businesses in Crackdown on Foreign Traders

Businesses owned by Asian nationals are being shut down across Eswatini as the government intensifies its crackdown on foreign-owned enterprises following the passage of a new economic empowerment law.

The move follows Parliament’s approval of the Citizen Economic Empowerment Act, which seeks to increase the ownership and participation of emaSwati, the country's citizens, in the economy.

The legislation was introduced amid complaints from local traders that foreign-owned businesses were taking over traditional retail markets, increasing competition and threatening the livelihoods of indigenous entrepreneurs.

The implementation of the law has, however, sparked disagreements among lawmakers over how quickly foreign business owners should be required to leave the country.

Mbabane East MP, Welcome Dlamini, told Parliament on Tuesday that officials from the Ministry of Trade had already begun enforcing the legislation by shutting down Asian-owned shops.

Another lawmaker, Hhohho Regional MP Tanele Magagula, called for immediate action, insisting that foreign-owned businesses in rural communities should be seized without delay.

"Businesses owned by foreigners in the rural areas must be seized immediately," she said.

However, Dlamini questioned whether local entrepreneurs were adequately prepared to take over the businesses, suggesting that foreign owners should be given at least three years 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 proposal, arguing that struggling local traders could not afford to wait another three years before benefiting from the new law.

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

Following the debate, Parliament agreed that foreign business owners should be given at least 12 months to leave.

However, unless the legislation is formally amended to reflect the agreed timeline, the Ministry of Trade could continue enforcing the existing provisions.

The closures follow inspections conducted by the ministry in August, during which some foreign-owned businesses, particularly in areas such as Mbabane, were found to be operating in compliance with existing regulations.

The inspections also raised concerns about working conditions and administrative practices in some foreign-owned enterprises, including complaints from employees over days off, annual leave and overtime payments. At least one case remains under investigation.

Eswatini, a small landlocked kingdom in Southern Africa, faces significant economic challenges, with approximately 70 per cent of its population living below the poverty line.

The government says the new legislation is designed to expand economic opportunities for citizens amid concerns that widespread poverty and hunger could contribute to further political unrest.

The development comes amid growing pressure on foreign-owned businesses across the region, particularly in neighbouring South Africa, where anti-immigration campaigns have resulted in raids, arrests, looting and disruptions to businesses operated by foreign nationals.

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

The campaigns have been accompanied by reports of violence and attacks on foreign-owned businesses, with two Ghanaian and two Nigerian nationals reportedly killed amid the tensions.

Kenya has also intensified enforcement against foreign traders, further highlighting growing concerns over the treatment of foreign nationals and their businesses across parts of Africa.