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Businesses owned by Asian nationals are being shuttered across Eswatini, formerly known as Swaziland, as the government cracks down on foreign-owned businesses.

The move follows Parliament's approval of a law aimed at increasing the ownership and participation of emaSwati, the name given to the kingdom's citizens.

The legislation follows complaints from local traders that foreign companies are encroaching on traditional retail markets, increasing competition and threatening their livelihoods.

South Africa has seen harsher crackdowns, including police raids, arrests and disruption of informal businesses run by foreigners, while Kenya has also stepped up its actions against foreign traders.

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Eswatini is a small landlocked kingdom in southern Africa, ruled by absolute monarch King Mswati III, where around 70% of the population lives below the poverty line.

Those exasperated by economic difficulties are increasingly demanding political reforms.

Pro-democracy protests have erupted in 2021 and the royal family has been criticized by activists for extravagant spending, as many Swatis who have jobs work in neighboring South Africa and send their earnings home.

The government says the new law aims to expand economic opportunities, amid fears that poverty and hunger could fuel new political tensions.

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But the implementation of the Citizens' Economic Empowerment Act has sparked heated debate in Eswatini's Parliament, with MPs divided over how quickly foreign business owners should be required to leave the country.

On Tuesday, Mbabane East MP Welcome Dlamini said trade ministry officials had already started enforcing the law by closing down Asian-owned stores.

Hhohho regional MP Tanele Magagula called for immediate action, saying: “Foreign-owned businesses in rural areas must be seized immediately.”

Dlamini questioned whether local entrepreneurs were ready to take over the businesses, arguing that foreigners should be given time to train their successors.

“Why not give Asians or foreigners at least three years before deporting them, so Swazis can learn how to run businesses?” he asked.

Magagula rejected the proposal, questioning why struggling local traders should wait when they themselves are facing economic difficulties.

“Why do we have to wait three years while the Swazis suffer?” she asked.

Parliament later agreed that foreign business owners should be given at least 12 months to leave the country.

However, unless the law is formally amended to reflect this timetable, the ministry may continue to enforce its provisions.

These closures follow inspections launched by the Ministry of Commerce in August. Some businesses inspected in areas such as the capital, Mbabane, were found to be fully compliant with regulations.

The inspections nevertheless raised concerns about working conditions and administrative practices at foreign-invested companies, including complaints from employees regarding days off, annual leave and overtime. At least one case remains under investigation.

The crackdown comes amid growing pressure on foreign businesses in other countries in the region, notably South Africa, which has seen repeated outbreaks of xenophobic violence, often targeting African migrants.

Local anti-migrant groups have set a June 30 deadline for undocumented migrants to leave the country — and their campaigns this year have often been accompanied by violence and attacks on foreign-owned businesses.

Two Ghanaian nationals and two Nigerian nationals were reportedly killed in this context of tensions.

Kenya has also increased its crackdown on foreign traders, bringing the treatment of foreign nationals and their businesses back into the spotlight across the region.

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We used AI to help translate this article, originally written in English. A BBC journalist checked the translation before publication. Learn more about how we use AI.

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