Eswatini's Parliament has adopted a recommendation giving foreign-owned businesses found to be operating in breach of the country's laws 12 months to regularise their operations or close, following a debate over inspections and the closure of foreign-run shops.
Members of Parliament adopted the recommendation on Tuesday, November 10, during a portfolio committee debate on the Ministry of Commerce, Industry and Trade's second-quarter performance report at the House of Assembly in Lobamba.
The debate focused on enforcement against foreign-owned businesses, particularly Asian-operated shops on Swazi Nation Land (SNL), with legislators divided over how much time affected traders should be allowed to comply or transition out of restricted activities.
Mbabane East MP Welcome Dlamini questioned whether authorities had prepared local entrepreneurs to take over the businesses. He warned that shops were being closed with goods still inside, putting stock at risk of going to waste and leaving emaSwati employees facing job losses.
Dlamini proposed giving affected business owners three years to make the transition, a position supported by Nhlambeni MP Manzi Zwane. Zwane argued that traders who had previously been allowed to operate in the country needed sufficient time to make alternative arrangements.
Mafutseni MP Sabelo Mtetwa opposed a three-year period and proposed six months instead. He argued that government should use the period to arrange financing for emaSwati, Eswatini citizens, to take over the businesses. He also said supermarkets serving local communities should ideally be citizen-owned.
Other legislators questioned whether enforcement was being applied fairly. Lugongolweni MP Joseph Souza asked whether businesses were being shut because they lacked valid licences or because their owners were foreign nationals. He argued that a valid, annually renewed licence should be considered regardless of the operator's nationality.
Lobamba Lomdzala MP Marwick Khumalo warned that closures could affect consumers who rely on foreign-owned shops for essential goods, including bread, particularly in communities where locally owned outlets struggle to maintain supplies. He supported a gradual transition and proposed the 12-month period.
The Ministry of Commerce said inspections were not intended to remove all foreign-owned businesses but to ensure that all operators comply with the law. It said businesses would be assessed individually and valid authorisations considered. The ministry also stressed that all businesses must meet their tax obligations.
The inspections began on August 26 to check licences, permits, tax obligations and other statutory requirements. They are taking place alongside the government's implementation of the Citizens Economic Empowerment Act, 2023, whose 2026 regulations seek to reserve selected economic activities for targeted citizen-owned companies.
The regulations tabled in Parliament include a provision reserving retail operations with annual turnover below E8 million for emaSwati. Listed activities include general dealer shops, supermarkets, grocery shops, pharmacies, hardware businesses and automotive spare-parts outlets.
The 12-month recommendation concerns businesses found to be non-compliant and the transition of affected operators, it does not automatically require every foreign-owned enterprise in Eswatini to shut down. The ministry says businesses operating legally will not be unfairly targeted as inspections continue.
