Eswatini gives foreign-owned businesses 1 year to comply or close

Foreign-owned businesses operating unlawfully in neighbouring Eswatini have been given 12 months to regularise their operations or face closure as the government moves to increase economic participation by local entrepreneurs.

The recommendation was adopted by Members of Parliament during a debate on the Ministry of Commerce, Industry and Trade’s second-quarter performance report at the House of Assembly on Tuesday, 10 November 2026.

According to Times of Eswatini, the discussions followed inspections and the closure of some businesses operated by foreign nationals, particularly Asian business owners.

The inspections have sparked debate among lawmakers over how the government should enforce regulations governing foreign-owned businesses.

Eswatini MPs divided over foreign-owned businesses

Some MPs argued that businesses operating on Swazi Nation Land (SNL) should primarily benefit emaSwati, as Eswatini citizens are known.

Mafutseni MP Sabelo Mtetwa proposed giving affected foreign business operators six months to comply, arguing that the government should help local entrepreneurs secure financing to take over the businesses.

However, Mbabane East MP Welcome Dlamini called for a three-year transition period, warning that abrupt closures could result in job losses and disrupt communities that depend on the shops for essential goods.

Nhlambeni MP Manzi Zwane supported the longer transition period, while Lobamba Lomdzala MP Marwick Khumalo raised concerns about the impact on consumers.

Some lawmakers also questioned why foreign nationals who had previously obtained business licences and authorisation were now facing closures.

In response, the Ministry of Commerce clarified that the inspections were not intended to remove all foreign-owned businesses from Eswatini.

Instead, the government wants businesses to comply with existing laws and regulations, including licensing, immigration and tax requirements.

Zimbabwe also tightens foreign business regulations

Eswatini’s move comes as other countries in the region introduce measures aimed at increasing local participation in business ownership.

In Zimbabwe, Statutory Instrument 215 of 2025 introduced regulations governing foreign participation in reserved economic sectors.

Under the regulations, foreign nationals operating in affected sectors must obtain permits and meet specified investment and employment requirements.

Existing foreign-owned businesses in reserved sectors were also given 30 days to submit regularisation plans and three years to transfer at least 75% of their equity to Zimbabwean citizens.

The regulations cover activities such as retail and wholesale trade, barber shops, hair salons, bakeries and passenger transport.

While Zimbabwe’s regulations provide for a gradual transfer of ownership, Eswatini’s latest parliamentary recommendation focuses on giving businesses operating unlawfully time to regularise their operations or close.

The developments highlight growing efforts across Southern Africa to expand opportunities for locally owned businesses while raising questions about foreign investment, employment and consumer access.