Eswatini gives foreign-owned businesses 1 year to regularise operations or close

The Eswatini parliament has adopted a recommendation to give foreign-owned businesses found operating in violation of the country's laws and regulations 12 months to regularise their operations or close shop. This decision was made during the portfolio committee debate on the Ministry of Commerce, Industry and Trade's second quarter performance report. The debate highlighted divisions among Members of Parliament (MPs) over the ongoing inspections and closure of businesses owned by foreign nationals, particularly Asian business operators.

Mbabane East MP Welcome Dlamini expressed concern over the manner in which the inspections were being conducted, stating that officers from the Ministry of Commerce were closing shops operated by Asian businesspeople. He warned that the closures were resulting in goods being left to rot, while Eswatini nationals employed by the affected businesses were losing their jobs at a time when unemployment remained a major challenge. Dlamini also questioned whether the government had a clear plan on who would take over the businesses once they were closed.

Some MPs proposed a longer transition period, with Nhlambeni MP Manzi Zwane suggesting three years, considering that the affected Asian business operators had previously been allowed to operate in the country for that period. However, Mafutseni MP Sabelo Mtetwa felt that three years would be unnecessarily long and proposed a six-month period. He argued that the government should use the six months to ensure that Eswatini nationals are adequately financed to enable them to take over the businesses.

Minister for Agriculture Mandla Tshawuka sought clarity on the nature of the businesses being closed, questioning whether the inspections were targeting operators who had complied with all the required procedures. Lugongolweni MP Joseph Souza also questioned whether the closures were being undertaken because businesses had invalid licences or simply because the government wanted foreign nationals out of the country.

Lobamba Lomdzala MP Marwick Khumalo cautioned against discriminatory treatment of foreign business operators, arguing that the government should not allow foreign nationals into the country, grant them the necessary documentation, and subsequently subject them to conditions that could render their businesses unviable. He emphasised that the interests of consumers appeared to have been overlooked in the exercise.

The debate highlighted the role of Asian-owned shops in providing goods and services in communities, with Khumalo pointing out that they play an important role in providing essential commodities. He supported a gradual approach, proposing that affected businesses be given 12 months to make the necessary adjustments. In response to the concerns raised by MPs, the mover of the motion clarified that the Ministry of Commerce was implementing legislation governing the issuing of business licences.

The committee established that some businesses were operating unlawfully on Swazi Nation Land and agreed that the government needed to address the situation. However, the process should not be abrupt, and a 12-month period was proposed to allow affected businesses to regularise their operations or close. The recommendation was made to balance the need to protect the interests of Eswatini nationals with the need to avoid disrupting livelihoods and affecting consumers.

Key points

• Foreign-owned businesses in Eswatini have been given 12 months to regularise their operations or close shop.
• The decision was made amid divisions among MPs over the impact on livelihoods and consumers.
• The government aims to address the situation of businesses operating unlawfully on Swazi Nation Land.