Eswatini closes illegal foreign businesses in crackdown

Foreign-owned shops operating illegally are being closed in Eswatini as the government moves to give citizens greater control of the small business sector.

The closures follow parliament’s approval of the Citizen Economic Empowerment Act, which seeks to increase business ownership among emaSwati, as the citizens are known.

The legislation in the kingdom came after complaints from local traders who say foreign operators were encroaching on retail, putting their livelihoods at risk.

Businesses owned by Asian nationals and other nationalities from Africa that are involved in retail activities are particularly affected.

Debate in parliament

Its implementation sparked a debate in Parliament on 10 November 2026 over how quickly foreign business owners should leave.

Officials from the trade ministry had already begun closing some of these shops.

One lawmaker, Welcome Dlamini, argued that foreign business owners should be given up to three years to train local successors.

He questioned why they should be “kicked out” before emaSwati are ready to take over.

Other lawmakers called for immediate closures, arguing that local traders could not afford to wait.

Parliament subsequently resolved that foreign business owners should be given at least 12 months to close, although the law must be formally amended to guarantee that timeline.

High unemployment

Despite its lower-middle-income classification, landlocked Eswatini faces significant economic challenges, including high unemployment, which stood at 33.5% according to official figures.

The government says it intends to expand opportunities for the country’s estimated population of 1.3 million.

But Eswatini is not alone. In neighbouring South Africa, campaigns by anti-immigrant groups such as March and March and Operation Dudula have led to deadly protests, raids and the disruption of foreign-owned businesses in recent months.

Several other African countries, Kenya, Tanzania and Ghana, have also introduced restrictions on small-scale foreign traders.

The latest wave of local people demanding more control over small businesses and jobs across Africa has sparked a debate about migration and Pan-Africanism, as well as the dangerous irregular movement of Africans to Europe by boat.

‘Big, difficult issue’

Speaking to TRT Afrika, former South African Minister of International Relations and Cooperation Grace Naledi Pandor described migration as a “big, difficult issue” that African countries must confront collectively.

She referenced President Cyril Ramaphosa’s call at the last African Union summit for migration to be addressed as a continental issue, rather than simply a South African problem.

The debate comes as African labour migration grows. The AU estimates that the continent had 13.1 million migrant workers in 2026, up from 9.3 million in 2010.

Africa is now facing the challenging task of stronger integration.

The African Continental Free Trade Area seeks to expand cross-border trade, while the AU’s 2018 Free Movement Protocol aims to make it easier for Africans to enter, reside and establish businesses across the continent.

Yet the protocol has still not entered into force, and local legislation and citizens’ sentiments remain another hurdle to cross.

TRT Afrika English / Susan Mwongeli — TRT Afrika English

Photo: Reuters (Wire)