Eigen RadarGeopolitics
Analysis

Eswatini MPs seek a year’s transition as foreign-owned shops close

Eswatini’s parliament backed a transition of at least 12 months for foreign-owned shops affected by enforcement of business rules. Lawmakers disputed the pace of closures and their effects on jobs and access to goods. The agreed timetable still needs to be incorporated into law to stop immediate enforcement by the trade ministry.

Geopolitics··Evening
A shop employee pulls down a metal roller shutter at a retail store in Mbabane, Eswatini, amid parliament's debate on foreign-owned shop closures.

Parliament supports a 12-month transition

Eswatini’s parliament debated closures of foreign-owned businesses on 10 November and supported a transition of at least 12 months. Its trade ministry has been enforcing business rules particularly affecting shops run by foreign nationals. Lawmakers disputed how quickly those businesses should have to adjust or close, and the consequences for employees and customers.[1], [2]

Lawmakers disagree over immediate closures

Welcome Dlamini, the MP for Mbabane East in Eswatini, sought three years for a transition, saying citizens could learn to operate the shops. Tanele Magagula, an MP from the country’s Hhohho region, instead wanted foreign-owned rural businesses seized immediately. Dlamini questioned who would take over the shops and warned about local employees losing their jobs.[1]

Enforcement continues under the existing law

The Citizen Economic Empowerment Act, Eswatini’s law to increase citizens’ role in business, underpins the closures. Unless the transition timetable is incorporated into legislation, the ministry can continue enforcement. Inspections began in August and found some shops around Mbabane fully compliant. They also brought complaints about days off, annual leave and overtime, with at least one case still under investigation.[1]

References

  1. News sourceBBC NewsEswatini parliament divided over closures of foreign-owned businesses↩1↩2↩3
  2. News sourceTimes of EswatiniEswatini MPs support a transition for foreign-owned shops↩