Eswatini is closing foreign-owned businesses, mainly Asian-run shops, and foreign owners are to be given at least 12 months to leave, according to reports from the kingdom.
Parliament agreed the 12-month period during a debate, according to the reports, as the trade ministry enforces the Citizen Economic Empowerment Act. The law was passed to increase ownership of, and participation in, the economy by emaSwati, as citizens of Eswatini are known.
What MPs said
Members of parliament disagreed on how long the transition should be. Mbabane East MP Welcome Dlamini asked why foreign owners could not be given at least three years. Hhohho Regional MP Tanele Magagula took the opposite view and called for faster action. "Businesses owned by foreigners in the rural areas must be seized immediately," Magagula said. He asked: "Why must we wait for three years while emaSwati suffer?"
Inspections and enforcement
Trade ministry inspections began in August, according to the reports. Some businesses inspected in Mbabane were found to be fully compliant. Inspectors also recorded concerns about employees' days off, annual leave and overtime, and at least one case is under investigation.
The wider context
The reports cite poverty as the backdrop to the debate, with about 70% of Eswatini's population living below the poverty line.
What we do not yet know
- Which minister or official announced the 12-month period, and whether it has the force of law. The reports note that unless the law is amended to reflect it, the ministry could keep enforcing its existing provisions.
- How many businesses have been closed or are affected.
- Whether South African-owned businesses are affected.
