The Kingdom of Eswatini has given foreign-owned businesses found operating in violation of the country’s laws and regulations 12 months to regularise their operations or face closure, in a move aimed at strengthening local economic participation and enforcing business licensing requirements.
The recommendation was adopted by Members of Parliament during deliberations on the Ministry of Commerce, Industry and Trade’s second-quarter performance report at the House of Assembly on Tuesday, November 10, 2026.
The decision comes amid an ongoing nationwide inspection exercise targeting businesses suspected of violating trading regulations, particularly foreign-owned retail establishments operated by Asian nationals.
The parliamentary debate exposed divisions among legislators over how the government should handle the affected businesses, with some supporting stricter enforcement while others warned that abrupt closures could lead to job losses, economic disruption and shortages of essential commodities.
Mbabane East MP Welcome Dlamini raised concerns over the manner in which government officers were conducting inspections, arguing that the crackdown had created an impression that authorities were targeting foreign business owners.
Dlamini warned that the closures were affecting local employees, with some losing their jobs while goods in closed shops risked going to waste.
He proposed a three-year transition period to allow affected business owners sufficient time to reorganise their operations.
Nhlambeni MP Manzi Zwane supported the proposal, arguing that foreign traders should be given adequate time to make alternative arrangements.
However, Mafutseni MP Sabelo Mtetwa opposed the longer transition period, suggesting that six months would be sufficient to prepare local entrepreneurs to take over businesses currently operated by foreign nationals.
Lobamba Lomdzala MP Marwick Khumalo also called for a measured approach, highlighting the importance of foreign-owned shops in supplying essential commodities to communities.
He warned that shutting down the establishments without proper arrangements could inconvenience consumers, particularly in areas where residents depend on the businesses for everyday necessities.
In response to the concerns, the Ministry of Commerce, Industry and Trade clarified that the inspections were not intended to force all foreign-owned businesses out of Eswatini.
Instead, the exercise seeks to ensure that businesses comply with licensing conditions, immigration requirements and tax obligations.
The ministry further indicated that individual business circumstances would be considered, including cases where operators had received the necessary authorisations from relevant authorities.
The crackdown is also linked to wider efforts to increase economic opportunities for emaSwati, the citizens of Eswatini, particularly in the retail sector and businesses operating on Swazi Nation Land.
A proposed framework under the Citizens Economic Empowerment Act of 2023 seeks to reserve certain business activities for local citizens and increase local ownership in selected sectors.
The latest development therefore highlights Eswatini’s efforts to balance economic empowerment for its citizens with employment protection, consumer interests and the need to maintain a favourable investment environment.
Importantly, the 12-month recommendation does not amount to an order requiring every foreign investor to leave Eswatini. It specifically targets businesses found to be operating unlawfully, giving them an opportunity to comply with the country’s regulations or close their operations.
