In an effort to boost local economic participation and alleviate poverty, the government of Eswatini has initiated a 12-month phaseout for foreign-owned businesses in the retail sector. The move follows growing concerns from local traders that these enterprises are encroaching on traditional markets, increasing competition and threatening livelihoods. Parliament's approval of the Citizen Economic Empowerment Act aims to increase ownership by emaSwati, the kingdom's citizens, and comes as a response to complaints about foreign businesses in rural areas.
The debate over the timeline for foreign business owners to leave has sparked heated discussions in Parliament, with some MPs advocating immediate action while others argue for providing foreigners with time to train their successors. Mbabane East MP Welcome Dlamini suggested a three-year transition period, whereas Hhohho Regional MP Tanele Magagula called for immediate seizure of businesses owned by foreigners in rural areas.
The trade ministry's inspections launched in August have led to the closure of Asian-owned shops across Eswatini, a small landlocked kingdom in Southern Africa where about 70% of the population lives below the poverty line. The government asserts that the new law is intended to expand economic opportunities for citizens, amid concerns that poverty and hunger could fuel further political unrest.
Eswatini's crackdown on foreign-owned businesses follows a broader trend in the region, particularly in neighboring South Africa where anti-immigration campaigns have resulted in raids, arrests, looting, and disruptions of foreign-run informal businesses. The treatment of foreign nationals and their businesses has also come under renewed scrutiny in Kenya. On July 30, 2026, the March and March movement intensified its campaign against undocumented immigrants, giving them a deadline to leave, followed by another protest on September 30. The campaigns have been accompanied by violence and attacks on foreign-owned businesses, resulting in reported deaths of two Ghanaian and two Nigerian nationals amid the tensions.
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