Eswatini Closes Foreign-Owned Shops As Government Moves To Protect Local Businesses

Eswatini is shutting down illegally operated foreign-owned shops to create more business opportunities for its citizens under the new Citizen Economic Empowerment Act. Parliament has proposed giving affected traders at least 12 months to close their businesses, although the arrangement requires a formal legal amendment. The move has renewed debate across Africa about protecting local businesses, managing migration and promoting economic cooperation.

The government of Eswatini has begun closing foreign-owned shops operating illegally as part of a new policy aimed at giving citizens greater control of the country's small business sector.
The enforcement follows parliament's approval of the Citizen Economic Empowerment Act, legislation designed to increase business ownership among emaSwati, the name given to citizens of the kingdom.
The move comes after complaints from local traders who accuse foreign business operators of expanding into retail activities traditionally dominated by citizens, creating greater competition and threatening their livelihoods.
Businesses owned by Asian nationals and other African foreigners involved in small-scale retail are among those affected by the new measures.
However, the implementation has sparked disagreement among lawmakers over how much time foreign business owners should be given to leave the sector and whether local traders are adequately prepared to take over the affected businesses.
The debate also reflects a wider challenge facing African countries as governments attempt to protect local employment and businesses while maintaining regional cooperation and the free movement of people.

PARLIAMENT DEBATES HOW QUICKLY FOREIGN TRADERS SHOULD LEAVE

The implementation of the new law became a major issue during a parliamentary debate on November 10, 2026.
By that time, officials from the Ministry of Commerce had already started shutting down some shops operated by foreign nationals.
Some lawmakers supported immediate enforcement, arguing that local traders had waited long enough for the government to protect their economic interests.
Others warned that forcing foreign business owners to leave too quickly could create unnecessary disruption, particularly where local citizens lacked the experience or resources required to take over existing businesses.
One lawmaker, Welcome Dlamini, proposed giving foreign operators up to three years to train local successors before withdrawing from the retail sector.
He questioned the wisdom of removing foreign business owners before emaSwati had developed the necessary skills and business experience to replace them.
Other legislators disagreed, maintaining that extending the transition period would continue exposing local traders to competition and delay the benefits expected from the legislation.
Following the debate, parliament resolved that foreign business owners should be given at least 12 months to close their businesses.
However, the proposed period must still be formally incorporated into the law through the appropriate legislative amendment before it becomes legally guaranteed.

GOVERNMENT SEEKS GREATER ECONOMIC OPPORTUNITIES FOR CITIZENS

Eswatini's Citizen Economic Empowerment Act is intended to increase the participation of local people in commercial activities and ensure that more business opportunities remain within the country.
The government argues that citizens should have greater access to small business ownership, particularly in retail activities that provide employment and income for many households.
The policy is also expected to encourage local entrepreneurship and help more emaSwati establish sustainable businesses.
Eswatini, a landlocked country in Southern Africa with an estimated population of 1.3 million, faces considerable economic challenges, including high unemployment.
Official figures put unemployment at approximately 33.5 per cent, making job creation and access to income-generating opportunities important priorities for the government.
For local traders, the new law represents an opportunity to expand their businesses without facing what they consider unfair competition from foreign operators.
However, questions remain about whether local entrepreneurs have enough capital, training, suppliers and business experience to take over the shops being closed.

FOREIGN-OWNED BUSINESSES FACE PRESSURE ACROSS AFRICA

Eswatini's decision is part of a wider debate across Africa about the role of foreign nationals in small businesses and the economic opportunities available to citizens.
In neighbouring South Africa, anti-immigrant movements such as March and March and Operation Dudula have organised campaigns against foreign-owned businesses and the presence of undocumented migrants.
Some of these activities have resulted in violent protests, attacks, business disruptions and deaths, raising concerns about xenophobia and the safety of foreign nationals.
Similar restrictions on small-scale foreign traders have also been introduced in countries such as Kenya, Tanzania and Ghana.
Governments and local business groups supporting such measures often argue that citizens should have priority in certain commercial activities, especially where unemployment is high and local entrepreneurs struggle to compete.
However, critics warn that targeting foreign-owned businesses can encourage discrimination, damage regional trade relationships and create hostility between African communities.
The challenge for governments is to protect legitimate local economic interests without allowing economic grievances to become a justification for violence or attacks against migrants.

MIGRATION AND PAN-AFRICANISM BECOME PART OF THE DEBATE

The growing restrictions have reopened discussions about migration, regional integration and the principles of Pan-Africanism.
Pan-Africanism promotes cooperation and solidarity among African countries and their people. One of its central ideas is that Africans should be able to work together, trade and pursue economic opportunities across national borders.
However, the increasing demand for citizens to control local businesses has exposed tensions between these ideals and domestic economic pressures.
Some communities believe foreign traders are taking opportunities that should be available to local people, while others argue that migrants contribute to economic development through investment, employment and commercial activities.
The debate is particularly sensitive because many African countries are simultaneously seeking to expand regional trade and encourage greater movement of people.
Former South African Minister of International Relations and Cooperation Grace Naledi Pandor described migration as a major and difficult issue that African countries must address collectively.
Speaking to TRT Afrika, she referred to President Cyril Ramaphosa's call at the previous African Union summit for migration to be treated as a continental concern rather than simply a South African problem.
Her position reflects growing recognition that migration challenges cannot be addressed effectively through isolated national policies alone.

AFRICA'S MIGRANT WORKFORCE CONTINUES TO GROW

The debate is taking place as labour migration across Africa continues to increase.
According to the African Union, the continent had approximately 13.1 million migrant workers in 2026, compared with 9.3 million in 2010.
These workers move between countries in search of employment, business opportunities and better living conditions.
Some establish small businesses, while others work in agriculture, construction, transport, hospitality, manufacturing and other sectors.
Their economic contributions can include creating jobs, providing services, paying taxes and supporting trade between neighbouring countries.
However, migration can also create pressure in communities where employment opportunities are limited, wages are low and access to business resources is already difficult.
These competing interests have made it increasingly important for African governments to develop policies that protect citizens while respecting the rights and dignity of migrants.

AFRICAN FREE TRADE AND FREE MOVEMENT PLANS FACE CHALLENGES

The growing restrictions on foreign-owned businesses also raise questions about Africa's wider plans for economic integration.
The African Continental Free Trade Area is designed to expand trade between African countries by reducing barriers and creating a larger market for goods and services.
The African Union's 2018 Protocol on Free Movement of Persons also seeks to make it easier for African citizens to enter, reside and establish businesses in other African countries.
If fully implemented, the protocol could support regional employment, entrepreneurship, investment and cooperation.
However, the agreement has not yet entered into force, while differences in national laws and public attitudes continue to create obstacles to its implementation.
Eswatini's latest policy illustrates the difficulty of balancing national economic empowerment with the broader ambition of creating a more integrated African economy.

THE CHALLENGE OF PROTECTING LOCAL BUSINESSES WITHOUT DEEPENING DIVISIONS

Eswatini's government now faces the task of implementing the Citizen Economic Empowerment Act while addressing concerns about the readiness of local traders to take over businesses affected by the closures.
The proposed 12-month transition period could provide time for foreign operators to wind down their activities and for local entrepreneurs to prepare, provided the necessary legal amendment is completed.
The government will also need to consider access to finance, business training and other support that could help citizens establish sustainable enterprises.
Beyond Eswatini, the development highlights a wider question for African governments: how can countries create more opportunities for their citizens without undermining regional cooperation or encouraging hostility towards other Africans?
As migration and economic integration continue to shape the continent's future, the balance between national economic priorities and Pan-African solidarity is likely to remain a major policy challenge.