This article urges government to fast-track the Citizens Economic Empowerment Act to protect indigenous businesses and ensure families don't sink deeper into poverty.
This article urges government to fast-track the Citizens Economic Empowerment Act to protect indigenous businesses and ensure families don't sink deeper into poverty.
Reading Time: 5 minutes

Two weeks ago, while paging through the Eswatini Observer, my heart sank when I read a story about the plight of women vendors in Luve.


The women spoke about how their fruits and vegetables—the very items that sustain their families—were rotting before their eyes because customers preferred buying the same produce at much lower prices inside local supermarkets owned by Asian nationals.

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Here is why my heart sank: I could almost picture the scene—women rising before dawn, travelling long distances with baskets of fresh produce and high hopes of generating income, only to watch the sun spoil their produce while customers walked past them into shops offering cheaper prices.

At a distance, this may look like vendors and shop owners bickering over customers. But the more I thought about it, the more I realised how concerning this matter is. This scenario represents a broader crisis engulfing indigenous businesses in the country, especially women in the informal sector.

WOMEN-RUN BUSINESSES COLLAPSING

Let us briefly look at economic indicators concerning women in business, to fully appreciate the plight of women trading in the informal market.

The 2023 FinScope Report revealed both an inspiring and heartbreaking reality in Eswatini. It states that women make up 67% of business owners during the start-up phase, yet only a fraction manage to grow or sustain their businesses. The report further notes that this pattern has remained unchanged since 2017.

How is this connected to the indigenous businesswomen in Luve? It means that women—who are already fighting poverty, gender inequality, family responsibilities and limited access to capital—are entering the business world in large numbers. It also suggests that women are being forced out of business as they remain exposed and unprotected from unscrupulous business practices.

Women vendors are losing their livelihoods as supermarkets undercut their prices.
Women vendors are losing their livelihoods as supermarkets undercut their prices.

So, my concern with the Luve story is not merely sentimental, nor is it simply a story about spoiled produce that can be replaced. Rather, it reflects a pattern repeating itself throughout the country and raises the question: What are we doing about it?

WHAT HAPPENED TO EMASWATI OWNING COMMUNITY BUSINESSES?

Today, nearly every community in Eswatini has grocery shops and mini-supermarkets run by foreign nationals. As a citizen, I cannot help but ask myself: How did we reach a point where the public can no longer sustain even the smallest of businesses in their own communities?

Localising the economy at community level is a fundamental step towards building an economy that equitably serves the public. The current set-up, where community-based businesses are not owned by indigenous people, is disempowering.

Considering that local vendors—with their humble capital and daily struggles—are expected to compete with businesses backed by strong supply chains, deeper pockets and foreign funding, this makes business for indigenous women feel like swimming against the tide.

Women depend on small, spontaneous purchases—when a customer leaves the shop with bread and decides to buy a few vegetables on their way out. But when shops begin selling everything the vendors sell—and at cheaper prices—those women lose more than income. They lose hope, dignity and a sense of purpose.

THE CITIZENS ECONOMIC EMPOWERMENT ACT

Is there hope for these businesses? Yes. The Citizens Economic Empowerment Act—whose council most recently completed a countrywide exercise on its fundamentals—is our hope.

This Act is designed to be the shield indigenous businesses have been praying for. It is intended to protect these businesses—especially women and young people—from unfair competition. It aims to regulate market sectors so that small businesses are not crushed before they even take their first step forward. It ensures that opportunities in this country do not slip into foreign hands while citizens look on helplessly.

When Eswatini talks about eliminating poverty, recalibrating income inequality, achieving food security, and providing quality education for our children, the Citizens Economic Empowerment Act must be at the heart of it—safeguarding the livelihoods of Eswatini’s indigenous people.

KEY LEARNING FROM BOTSWANA

With the world now a global village, securing the interests of local people has become a top priority for many nations. As globalisation accelerates, countries are increasingly recognising that economic integration and technological advancement must not come at the expense of cultural identity, social cohesion or equitable development.

Our neighbour Botswana, alongside several progressive states, has placed the empowerment of its indigenous people at the centre of its national development agenda.

Botswana’s Citizen Economic Empowerment Policy reserves entire sectors—such as informal trading, small retail, taxis and general dealerships—for citizens only. Foreign investors are welcome, but at higher levels where they add meaningful value, not where they compete directly with the poor.

READ MORE | Eswatini’s constitution proves resilient

This system has allowed Batswana to retain control of their grassroots economy. It demonstrates that protecting citizens is not xenophobia—it is a strategy for equitable development.

I write this article today purely to implore our government to accelerate the operationalisation of the Eswatini Citizens Economic Empowerment Act. If Botswana and many of our SADC counterparts are already doing it, we must urgently follow suit.

THE ROLE OF TRADITIONAL LEADERS

Legislation alone will not solve our problems. Our community structures also have a role to play. The chief’s inner council (bobandlancane), Community Development Committees (CDCs), and tibonza are well placed to protect indigenous, community-based businesses against unfavourable elements.

MPs, bucopho, and the indvuna yenkhundla also have the power to turn the situation around. The Constitution actually requires that these three officials—serving as the Inkhundla Committee—carry responsibility for harnessing all natural resources within their constituency to economically advance the people.

These leaders hold constitutional authority and are best positioned to be the voice of marginalised community members, such as the women in Luve.

Many MPs have built market stalls for women in rural communities and yes, these structures are a step in the right direction. But empty and systemically frustrated stalls cannot feed families. What good are these projects if women sit in them all day but leave with unsold produce because a non-Liswati-run shop next door is offering the same goods at lower prices?

PRESENT ECONOMIC OUTLOOK

Let us focus on why we need to protect indigenously owned businesses. While Eswatini is classified as a lower-middle-income country, the World Bank’s 2024 report tells a harsher truth: 52.1% of the public live below the international poverty line and 20% of the population controls 80% of the wealth.

Add to this our unemployment crisis—36% nationally and 58% among the youth—and it becomes painfully clear why informal vending is not just an economic activity. It is a lifeline the country must fiercely protect.

Street vendors.
Street vendors.

Thousands of children will eat today because their mothers sold fruits and vegetables by the roadside. Thousands of unemployed youth survive under the care of mothers who are informal vendors—women earning a few emalangeni to bring bread home. If these women fail, entire families in Eswatini fall into despair.

The outcry from the women at Luve should serve as a national alarm bell, telling us that something in our policies is terribly wrong.

THE ROLE OF PARLIAMENT

Here is what needs to happen urgently. Let us popularise the Citizens Economic Empowerment Act as widely as we did the SODV Act of 2018.

Without being inflammatory, let us publicly discuss the provisions of this legislation and what its enforcement would mean for our people and our economy. Furthermore, because of its intended purpose, the Act requires government to provide financial support for its implementation.

CONCLUSION

The outcry from the Luve women deserves another thorough discussion in both Houses of Parliament—whether concerning the speeding up, operationalisation, popularisation, or finalisation of the Act.

Why is this necessary? Because the future and general livelihood of countless families—children, young people, and unemployed adults—depend on the survival of our informal vendors.

Until Next Week,
God bless!

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Email: johnpires@live.com
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