The parliamentary recommendation follows inspections and the closure of some foreign-operated shops, as lawmakers debate how to expand opportunities for local traders without disrupting businesses and livelihoods

Mbabane, Eswatini, Running Africa – Foreign-owned businesses found to be operating in breach of Eswatini’s laws have been given a proposed 12-month transition period to regularize their operations or shut down, following a debate among lawmakers over the government’s enforcement measures.

Parliament adopts 12-month recommendation

Members of Parliament adopted the recommendation on Nov. 10 during discussions on the Ministry of Commerce, Industry and Trade’s performance report. The debate followed inspections and closures affecting some businesses operated by foreign nationals, particularly Asian traders.

Lawmakers split on timing

Lawmakers differed over how much time affected operators should receive. Mbabane East MP Welcome Dlamini proposed a three-year transition, arguing that local entrepreneurs needed time to prepare to take over the businesses.

Mafutseni MP Sabelo Mtetwa suggested six months, while other legislators supported a year to allow for a more gradual adjustment.

Concerns over jobs and essential goods

The debate also raised concerns about the consequences of abrupt closures, including potential job losses among emaSwati employed by the businesses and disruption to communities that depend on their shops for essential goods.

Some MPs questioned whether authorities were distinguishing between operators without valid authorization and those who had previously received permission to trade.

What the inspections are for

The Ministry of Commerce has said the inspections are intended to establish whether businesses comply with licensing, tax, immigration and other regulatory requirements, rather than to remove all foreign-owned enterprises. It has also indicated that valid authorizations will be considered when assessing individual businesses.

In a statement issued on Nov. 12, Commerce Minister Manqoba Khumalo clarified that the ongoing inspection exercise was not being conducted under the Citizen Economic Empowerment Act, as the regulations required for its implementation were still being developed.

The distinction is important because the inspections and the wider policy of reserving certain economic activities for citizens are separate processes.

Balancing empowerment and livelihoods

The government says its broader economic empowerment agenda seeks to increase opportunities for emaSwati, the citizens of Eswatini, to own and participate in businesses.

The latest debate has raised questions about how that objective can be pursued while accounting for existing business operators, employees and consumers.