MINISTER of Commerce, Industry and Trade Manqoba Khumalo has warned that renting out licenses to foreign national for businesses on Eswatini national Land (ENL) is against the law.
The minister said this was a cause for concern as it derailed efforts made by government to empower businesses owned by indigenous people.
This was during the debate of a question for oral answer posed by Mtfongwaneni MP Nathi Hlophe on Wednesday directed to Minister Khumalo.
The minister was directed to inform the House about the rationale being used by the ministry to license retail shops mostly owned by Asians even in rural communities.
The MP also enquired if it was viable in terms of business investment point of view and whether the ministry was monitoring such businesses to ensure Emaswati who were employed by the businesses were remunerated properly.
In response, Khumalo stated that the ministry was aware that there were many businesses being run by foreign nationals and the main reason was that the licenses were rented out by the indigenous license holders to the foreign nationals. The minister warned that renting out licenses to foreign nationals would attract E15 000 fine. He said the fine was recently increased from E500.
“We hope the increase in the fine will be prohibitive because this is difficult to control,” he said.
Khumalo welcomed the question and said pertaining to the rationale used when granting the licences, there was legislation in place, the Trading Licences Order of 1975.
He said Section 8 (1) of the Order provided that licences on Eswatini Nation Land (ENL) were only issued to businesses owned by indigenous Emaswati.
He said apart from the legislation, there was also the Swaziland Commercial Amadoda that was appointed by traditional structures to also regulate the issuing of licences on ENL. He said the Swaziland Commercial Amadoda was mandated to verify if indeed the licence applicant was indeed an indigenous Liswati and recommend to the ministry for issuing of a license once a king’s consent was issued.
Pertaining to whether it was viable from a business point of view, said the ministry Khumalo was making means to promote businesses owned by indigenous Emaswati. He said one such effort was the enactment of the Citizens Economic Empowerment Act of 2023. He said the ministry was in the process of formulating regulations which would operationalise the Act.
He said consultations were at an advanced stage and should be completed by June. Pertaining to the remuneration of the employees, the minister said that was under the ministry of labour and social security.
He, however, assured that they were working hand in hand with the ministry whenever there were reports of unfair labour practices.
Deputy Speaker Madala Mhlanga questioned if the name Swaziland Commercial Amadoda was not discriminatory to women and if there was legislation in place that provided for the committee’s establishment.
Madlangempisi MP Allen Vilane noted that there were too many businesses run by foreigners on ENL. He questioned the criterion used for licencing businesses owned by foreigners in the telecommunications industry.
He said most Emaswati purchased mobile phones from such businesses who did not offer pay point services, thus resulting in government losing valuable tax revenue.
Mafutseni MP Sabelo Mtetwa enquired what the ministry was doing to support Emaswati who ended up renting out their licences.
He also questioned if there had been anyone who was fined the E15 000.
In response, Minister Khumalo said they were working together with the ministry of finance and Eswatini Revenue Services (RES) to ensure all retail businesses had pay points facilities. He said they would monitor and penalise all businesses that did not have the services. He added that the ministry was yet to penalise anyone for renting out their licences since the fine was recently reviewed.
