Eswatini (Swaziland) – the Emerging Hub for African Organized Crime

Eswatini: Emerging as a New Hub for Organized Crime in Africa

In recent years, Eswatini, a small kingdom in Southern Africa, has drawn increasing attention from international law enforcement agencies and criminal organizations alike. The country is being increasingly recognized as a growing hub for organized crime in Africa, with connections to various illicit activities that span the globe. This shift has been driven by a combination of weak regulatory oversight, high-level corruption, and its strategic location in the region.

Eswatini Involvement in Organized Crime Networks

One of the most alarming developments is the presence of international organized crime groups, including the notorious Nigerian ‘Black Axe.’ Originally founded as a student fraternity, Black Axe has evolved into a powerful criminal organization involved in drug trafficking, human trafficking, and cybercrime. Eswatini has become an attractive base for such groups due to its porous borders and limited law enforcement capabilities. These criminal networks exploit the country’s weak regulatory environment to establish operations that can easily extend into neighboring countries like South Africa and Mozambique.

Cybercrimes in Eswatini

According to the Organized Crime Index:

Eswatini is vulnerable to cybercrimes because of a lack of public awareness of cyber-security. Cybercriminals target various sectors, financial institutions included, taking advantage of the increasing use of computers, smartphones, and the low public vigilance towards cyber-security. Consequently, there has been an increase in reported cybercrimes in recent years.

Financial crimes pose a significant problem in Eswatini, and online fraud is one of the most common forms of economic crime in the country. ATM fraud, card cloning, investment fraud, and internet fraud are among the most prevalent types of financial crimes, with banks frequently targeted or serving as intermediaries for victim compensation. Embezzlement of public funds is widespread, with high-profile officials, including members of Parliament and the military command, investigated for a range of financial crimes. In the private sector, fraud is an issue in real estate and on plantations. Corruption and tax evasion are other main forms of financial crime in Eswatini, with the proceeds believed to be invested in the relatively unregulated real estate sector. Although the banking sector handles most formal financial transactions, cash transactions and cross-border cash transportation drive a large informal economy. Despite the prevalence of financial crimes, the rate of these crimes in Eswatini is probably underreported.

Foreign actors in Eswatini mainly consist of small diasporas, with Asian and West African communities being the most prominent. They have connections with their counterparts in neighbouring countries and engage in a range of criminal activities, including smuggling drugs such as heroin and meth, and the cannabis trade. Additionally, there is evidence of foreign residents engaging in cross-border fraud and cybercrime targeting individuals and institutions in South Africa, with proceeds typically transferred out of Eswatini. Other foreign-led activities include the smuggling of commodities, contraband retail, and violent predatory crimes such as robberies. There is also evidence of foreign enterprises being involved in wildlife trade and money laundering.

This provides a breeding ground for criminals who prefer fraud over regular work.

However, SCARS has also observed the movement of Black Axe operatives that seem to be operating in Eswatini as well.

Russian Organized Crime and Sanctions Evasion

Compounding the situation, Russian organized crime groups have found a new way to bypass Western sanctions by exploiting Eswatini’s lax maritime regulations. With limited scrutiny and a lack of robust oversight, Eswatini has become a convenient jurisdiction for registering Russian ships. These vessels are then used for various forms of criminal commerce, including smuggling, illegal fishing, and trafficking of goods banned under international sanctions.

This exploitation of Eswatini’s maritime registry is particularly concerning because it allows Russian criminal organizations to maintain their operations despite global efforts to curtail their activities. By flying the Eswatini flag, these ships can navigate international waters with reduced scrutiny, facilitating illegal trade and money laundering on a significant scale.

Financial Crime and Gold Smuggling in Eswatini

Eswatini’s growing role in the regional and global criminal economy is further underscored by its involvement in gold smuggling operations. Investigations have revealed that illegal gold from South Africa is laundered through Eswatini before being exported to markets in the Middle East. This smuggling network reportedly involves influential figures within Eswatini, including those connected to the royal family, raising serious concerns about corruption at the highest levels of government.

These illicit financial flows are not limited to gold. The country is also becoming a hotspot for various financial crimes, including money laundering and tax evasion. The banking sector in Eswatini, despite being relatively small, is increasingly being used to facilitate these crimes, taking advantage of the country’s limited regulatory frameworks and enforcement capabilities.

Challenges for Law Enforcement

Eswatini’s law enforcement agencies face significant challenges in combating these sophisticated criminal networks. The Royal Eswatini Police Service, though formally responsible for national security, lacks the resources and expertise to effectively tackle the complex web of organized crime activities now taking root in the country. Moreover, the involvement of high-ranking officials in these illicit activities further hampers efforts to bring criminals to justice.

The situation is exacerbated by the country’s legal and regulatory environment, which is ill-equipped to deal with the scale and sophistication of international organized crime. Despite some efforts to strengthen anti-corruption measures and improve law enforcement capabilities, the pervasive influence of criminal organizations continues to undermine these initiatives.

Implications for the Region and Beyond

Eswatini’s transformation into a hub for organized crime has serious implications for the region and beyond. As criminal networks establish stronger footholds in the country, they not only threaten local stability but also contribute to a broader pattern of lawlessness and violence across Southern Africa. The use of Eswatini as a transit point for drugs, illegal gold, and other illicit goods increases the risk of crime and corruption spreading to neighboring countries.

Furthermore, the involvement of Russian organized crime in bypassing sanctions through Eswatini’s maritime registry poses a significant challenge to international efforts aimed at curbing illegal activities. This development highlights the need for a coordinated global response to address the growing influence of organized crime in Eswatini and to prevent the country from becoming a safe haven for criminal enterprises.

Conclusion

Eswatini’s emergence as a new hub for organized crime in Africa is a troubling development that demands urgent attention. The country’s strategic location, weak regulatory frameworks, and the involvement of powerful criminal networks create a perfect storm for illicit activities. Without significant international support and reform, Eswatini risks becoming a central player in the global criminal economy, with far-reaching consequences for the region and beyond.