BUSINESS Eswatini (BE) has warned that nationwide protests in South Africa could have significant implications for the country’s economy.
BE Chief Executive Officer E. Nathi Dlamini cited concerns over cross-border trade, employment and regional integration.
The protests led by the March and March movement on Tuesday disrupted business activities across South Africa, Eswatini’s largest trading partner.
According to the Central Bank of Eswatini’s Recent Economic Developments report, trade with South Africa accounted for over 72% of the kingdom’s imports and exports in May alone.
Given the close economic ties between the two countries, Dlamini said the unrest had already created uncertainty among businesses and workers.
He said it was unfortunate to have a situation of this nature that no one could predict. He said the situation had created fear even among locals who are legitimately living and working in South Africa.
He said long queues were observed at border posts on Monday as locals and other foreign nationals returned home amid growing uncertainty.
He added that there was clear panic among people crossing back into the country.
He said panic was never good for business.
Dlamini noted that the protests could have immediate consequences for Emaswati employed in South Africa and warned that any large-scale return of workers would place additional pressure on the local labour market.
He revealed that a logistics company in Matsapha had received 1 972 job applications in four days, including about 400 electronic applications from people seeking truck driver positions in South Africa.
“You can almost immediately see the impact this could have. The employment sector will be strained when people come back from SA because of fear,” Dlamini said.
Dlamini added that the developments also undermined the principles of regional integration promoted by the Southern African Development Community (SADC), particularly the free movement of labour within member states.
He added that disruptions would likely extend beyond employment, affecting transport, logistics and cross-border supply chains.
“It is unfortunate that it is happening this way. It undermines the very pillars of SADC when we talk about regional integration and labour mobility among member countries. I hope regional leaders will speak out because there are better ways of addressing these issues.
“Every sector will be affected including trucking and logistics. We have trucks leaving the country, registered with SA number plates and many of them employ Emaswati who work for South African companies. That creates additional uncertainty,” Dlamini added.
Despite the concerns, Dlamini said Business Eswatini had not received any reports of serious and alarming incidents involving its members operating in South Africa.
He said they were monitoring the situation and had engaged their members trading in South Africa. He said they would continue monitoring developments over the coming days.
Business Eswatini contributes about 92% of the country’s gross domestic product (GDP), making the stability of cross-border trade and regional business operations critical to the country’s economic performance.
With South Africa remaining Eswatini’s dominant trading partner, business leaders say prolonged disruptions could weigh on trade flows, employment and investor confidence if the situation persists.
