Eswatini could lose more than 20,000 jobs if Parliament passes Section 129 of the Employment Bill No. 12 of 2024, which aims to outlaw triangular employment arrangements.
This was revealed by the CEO of Business Eswatini (BE), E. Nathi Dlamini, during the launch of the Impact Analysis Report on the Prohibition of Triangular Employment – Section 129 of the Employment Bill no. 12 2024.
This report was prepared by BE and presented on Friday, 12 September 2025, at the Royal Villas in Ezulwini.
The report provides an evidence-based analysis of the potential effects of Section 129 of the Employment Bill No. 12 of 2024, which seeks to completely prohibit triangular employment arrangements in Eswatini. The assessment is informed by survey responses from 71 employers across different sectors and company sizes, as well as by international labour standards and regional experiences.
Triangular employment (where workers are hired through third-party intermediaries such as private employment agencies) is a common practice in Eswatini, especially in sectors like security, agriculture, cleaning, construction, and related services. Under the proposed legislation, all such arrangements would need to be discontinued within 12 months of the Bill becoming law.
Presenting on the potential impact of the Bill, Dlamini warned that the proposed ban on triangular employment, contained in Section 129 of the Employment Bill No. 12 of 2024, could push Eswatini’s unemployment crisis into uncharted territory.
The report projects that more than 11,700 direct jobs would be lost if the Bill is enacted, with a further 8,000 indirect jobs at risk across services, logistics, and small and medium-sized enterprises (SMEs). Extrapolated nationally, job losses could surpass 20,000 positions, worsening an unemployment rate already estimated at 34%.
Eswatini’s labour market remains deeply constrained. According to the 2023 Integrated Labour Force Survey, the working-age population stands at 793,614 people, but fewer than 261,000 are employed. The rest are either unemployed or outside the labour force.
“Against this fragile backdrop, an outright ban on triangular employment would be devastating,” Dlamini noted. Vulnerable groups, particularly youth and women concentrated in cleaning, hospitality, and support roles, would be disproportionately affected.
The sugar, agriculture, and security industries are highlighted as particularly exposed.
Sugar estates rely on seasonal triangular workers for harvesting and rural services, including housing, water, and health care. A ban could destabilise entire communities.
The security sector, with over 15,000 workers, would see contract collapses across government institutions, banks, and malls.
Forestry and agriculture, which depend on 22,000 seasonal workers, face unsustainable payrolls if forced into direct employment.
Employers overwhelmingly oppose the prohibition, with 97% of surveyed businesses advocating regulation instead. They argue for licensing private employment agencies, stronger labour inspections, and sector-specific codes of conduct.
Presenting policy recommendations, Nelisiwe Mtshali, Head of Industrial Relations and Company Secretary at BE, highlighted that the International Labour Organization (ILO) has also cautioned that outright prohibition is inconsistent with Convention 181, which encourages regulation rather than elimination of private employment agencies.
Beyond economic risks, the report highlights a potential constitutional conflict. Section 32(1) of Eswatini’s 2005 Constitution guarantees the right of every person to engage in any lawful trade, occupation, or business. A blanket ban could undermine this right.
“A blanket prohibition of triangular employment undermines this constitutional right and contradicts the principle of lawful enterprise,” the report notes.
Dlamini concluded that regulation, not prohibition, is the sustainable way forward. “A balanced regulatory framework can protect workers while preserving enterprise viability and community livelihoods,” he said.