Eswatini Parliament Agrees 12-Month Exit Period for Foreign Businesses

What changed

Eswatini has approved a crackdown on foreign-owned businesses, with officials already closing some Asian-owned shops under the Citizen Economic Empowerment Act.

Parliament agreed that foreign business owners should have at least 12 months to leave, but that timetable has not yet been formally written into the law. The trade ministry began inspections in August, finding some businesses compliant while raising concerns about working conditions and administrative practices at others.

Why it matters

This turns a dispute over crowded local markets into a question of who gets to own and operate parts of Eswatini’s economy.

The government says the law will expand opportunities for emaSwati, as citizens are known, during severe economic hardship. About 70% of the population lives below the poverty line. Local traders say foreign-owned businesses are taking over traditional retail markets and threatening livelihoods.

The practical problem is succession. One lawmaker argued that foreign owners should have as long as three years to train local replacements. Another demanded immediate seizure of businesses in rural areas. Parliament settled on 12 months, but unless the law is amended, officials may still enforce it faster.

That leaves foreign-owned shops facing an uncertain exit while local entrepreneurs may be expected to take over quickly. Whether they can do so without disrupting businesses remains unresolved. The final scope and pace of closures will depend on how the trade ministry applies the law and whether Parliament makes the 12-month limit binding.