MPs call for stronger vetting of foreign investors

By Thokozani Mazibuko

A heated debate unfolded in Parliament on Wednesday as Members of Parliament challenged the Ministry of Commerce Industry and Trade to strengthen its vetting systems for foreign investors and to prioritise empowering local entrepreneurs. Concerns were raised over cases where some foreign investors allegedly exploit Emaswati through underpayment and poor working conditions and where government agencies continue to overlook capable local businesspeople in favour of foreign entities.

The issue was raised during a session of the Public Accounts Committee where MPs pressed ministry officials to explain what mechanisms were in place to protect the country from dishonest or abusive investors.

The debate also focused on the broader mandate of the Eswatini Investment Promotion Authority and whether it is sufficiently supporting domestic business development.

MP Lieutenant General Thembeni Magongo was among the first to voice strong concerns. He questioned the Ministry directly on whether there was an effective vetting system to assess investors before they are allowed to operate in the country.

He stressed that Eswatini must be protected from individuals and companies whose intentions are not genuine and who may cause harm to citizens. In his remarks he asked whether the Ministry has procedures that can confirm if investors are legitimate or whether they might be crooks posing as businesspeople.

His comments reflect growing unease over reports of investors who arrive in the country presenting themselves as job creators but later engage in illegal or unethical conduct.

Echoing these concerns MP Sabelo Ndlangamandla from Matsanjeni criticised the manner in which some foreign owned companies treat their employees. He expressed frustration that despite promises of investment job creation and economic growth a number of these businesses continue to exploit Emaswati.

According to Ndlangamandla some employers have earned a reputation for underpaying workers and operating in conditions that undermine labour rights.

He noted that this type of exploitation contradicts the stated goals of attracting foreign investment which should contribute positively to the economy and respect the dignity of workers.

Ndlangamandla urged the Ministry to adopt stricter scrutiny when reviewing applications from foreign investors. He argued that only companies with a clear commitment to ethical labour practices and fair treatment of workers should be allowed to operate in Eswatini.

He also insisted that the Ministry should regularly monitor businesses after approval to ensure compliance with labour laws and investment conditions.

Former Public Accounts Committee Chairperson MP Manzi Zwane further broadened the conversation by raising concerns over the priorities of the Eswatini Investment Promotion Authority. He questioned why EIPA spends significant resources seeking foreign companies to provide services and supply goods when many Emaswati already have the capacity to meet government needs.

Zwane asked whether the agency has a plan that empowers local entrepreneurs or whether its strategy is overly focused on foreign investment at the expense of local business development.

Zwane insisted that Eswatini has talented entrepreneurs who can manufacture goods provide professional services and support major national projects if given the opportunity.

He warned that continuing to overlook this potential undermines the growth of local industries and stifles economic self-sufficiency.

He urged EIPA to shift its focus toward identifying nurturing and promoting local businesses that can compete on both local and international markets.

In response ministry officials acknowledged the concerns and emphasised that several policies are already being implemented to safeguard the country from untrustworthy investors.

They explained that due diligence processes are part of the investor screening process but admitted that more work is needed to strengthen enforcement and to ensure that post approval monitoring is comprehensive.

Officials also stated that the Ministry is reviewing its investment guidelines and is working closely with other agencies to improve transparency and accountability.

On the matter of empowering local entrepreneur’s ministry representatives said that EIPA has programmes aimed at supporting Emaswati owned businesses but conceded that some gaps remain.

They expressed commitment to expanding these initiatives to ensure that local businesses receive training financial guidance export support and access to funding opportunities.

However, MPs argued that these programmes need to be more visible and more aggressively implemented to have meaningful impact.

The parliamentary debate highlighted a growing call for balance between welcoming foreign investment and safeguarding national interests.

MPs across the political spectrum emphasised that while foreign investors play a critical role in economic development Eswatini must ensure that investors bring genuine value and operate in compliance with local laws.

They also stressed that local empowerment must be at the centre of national development strategies.

As the Ministry continues reviewing its investment policies MPs have vowed to maintain pressure until stronger safeguards are in place.

The debate signals a shift toward a more assertive approach in protecting workers promoting ethical investment practices and building an economy that supports both foreign investors and local entrepreneurs.