Eswatini Minister: Business Inspections Not Xenophobic

Eswatini's Minister for Commerce, Industry and Trade, Senator Manqoba Khumalo, has rejected claims that the government's business inspections are xenophobic. The inspections, which began on May 5, 2026, aim to ensure that all businesses comply with the country's laws and regulations. According to Khumalo, the exercise is not targeting any particular individual, group, or nationality. The minister's statement comes amid public reactions and misinformation surrounding the inspections.

The inspections have been conducted across the country, with a total of 3,226 businesses inspected, and 69.4% found to be non-compliant. The retail sector accounted for 68.9% of the businesses inspected. Khumalo emphasized that the inspections are guided by existing legislation, including the Trading Licences Order No. 20 of 1975, the Immigration Act No. 17 of 1982, and the Income Tax Order of 1975. The minister stressed that the purpose of the inspections is to safeguard the safety and well-being of emaSwati.

The inspections have attracted attention in Parliament, where legislators have expressed differing views on the treatment of foreign-owned businesses found operating in violation of the country's laws. Members of Parliament have adopted a recommendation that foreign-owned businesses found operating unlawfully be given 12 months to regularize their operations or close. The parliamentary debate exposed differences among legislators, with some proposing shorter transition periods while others called for more time to allow affected business operators to adjust.

Khumalo disclosed that Somalis and Ethiopians accounted for between 60 and 70% of non-compliance cases identified among businesses operating on Swazi Nation Land (SNL). He said some of the affected operators did not possess the correct legal documents to remain in the country or the requisite documentation to operate businesses. The minister also maintained that the Trading Licences Order of 1975 prohibited foreign nationals from trading on SNL.

The minister clarified that the current inspections are not being conducted under the Citizens Economic Empowerment Act of 2024, as the ministry is still developing the necessary regulations for its implementation. Khumalo acknowledged the need for a fair and practical transitional arrangement for foreign nationals who are lawfully present in the country but operating in sectors reserved for emaSwati. He stressed that compliance with both immigration and business regulations remains non-negotiable.

The inspections have also attracted international attention, with media reports linking the developments in Eswatini to growing pressure on foreign-owned businesses in the region. The BBC and SA People have reported on the closure of foreign-owned businesses, with the latter describing Eswatini's enforcement exercise as an 'aggressive regulatory sweep' targeting Asian-owned convenience shops and groceries.

Khumalo expressed confidence in the ability of emaSwati, particularly young people, to participate meaningfully in the retail sector. He urged the nation to trust local entrepreneurs, support their ambitions, and create opportunities for them to succeed. The minister appealed to the nation and business community to continue cooperating with the relevant authorities by ensuring that they fulfilled all legal and regulatory requirements governing business operations.

Key points

• The inspections aim to ensure that all businesses comply with Eswatini's laws and regulations.
• The exercise has been guided by existing legislation, including the Trading Licences Order No. 20 of 1975 and the Immigration Act No. 17 of 1982.
• The minister has clarified that the inspections are not xenophobic and apply to all businesses.