SIGNIFICANT PROJECTS SET TO TRANSFORM ESWATINI IN 2025
MBABANE - As the Kingdom of Eswatini steps into 2025, the nation is poised for a transformative year, marked by the launch of several significant projects.
These initiatives span critical sectors such as infrastructure, water management, energy and finance, underscoring the country’s commitment to economic growth, job creation and improved living standards. Here is an in-depth look at the major projects expected to reshape Eswatini’s socio-economic landscape in 2025.
Road Infrastructure Improvement Programme Phase I
In a landmark move, the African Development Bank (AfDB) approved a E2.4 billion (US$140.6 million) loan to Eswatini in December 2024, to kick start the first phase of the Road Infrastructure Improvement Programme. This ambitious project, slated to begin in 2025, aims to enhance road connectivity and mobility at both national and regional levels. The programme will focus on rehabilitating and upgrading key road networks, ensuring seamless transportation of goods and people. Improved road infrastructure is expected to unlock economic opportunities by linking rural areas to urban centres, facilitating trade and improving access to education and healthcare facilities. The road infrastructure investment will enable upgrading of 105.9 km of paved roads. The new road surfaces will be adapted to climate change, enabling all-weather transportation, locally and the wider area.
The Siphofaneni-Sithobela-Maloma-Nsoko (MR14) and Maloma-Siphambanweni (MR21) sections will be upgraded and will have a width of 12.3 metres. This includes 2-metre paved shoulders on each side of the road as well as bridges. The effect will be to reduce journey times and vehicle operating costs. The project also includes the construction of an axle-load weighing facility along the MR14 Road. In addition, support will be provided to sectoral reforms of policy and institutional frameworks in the sphere of road safety (current road safety provisions are not consistently implemented), and for the design of an axle-load control programme.
In welcoming the project, Moono Mupotola, the Bank’s Country Manager for Eswatini said: “Above all, the project will contribute to poverty reduction by creating well-paid jobs for young people in economically disadvantaged regions such as Lubombo and Shilselweni,” Moreover, the project is expected to create approximately 200 direct jobs, providing much-needed employment opportunities for emaSwati. Beyond job creation, it will contribute to fostering inclusive growth and reducing socio-economic disparities.
Mkhondvo-Ngwavuma Water Augmentation Project (MNWAP) Phase I.
Water security remains a pressing concern in Eswatini and the Mkhondvo-Ngwavuma Water Augmentation Project (MNWAP) Phase I is a game-changer in this regard. The project is spearheaded by the Eswatini Water and Agricultural Development Enterprise (EWADE), which has continued to lead in transformative agricultural development, drawing international attention for its exemplary project implementation. EWADE Chief Executive Officer, Dr Samson Sithole, is optimistic about the project’s potential to transform the lives of over 100 000 emaSwati in the Shiselweni Region.He has a strong conviction that this multi-billion-Emalangeni initiative is opening doors to high-return investments for local and international investors, offering access to a diverse range of sectors, from renewable energy to ecotourism.
“At its core, MNWAP focuses on agricultural and agro-industrial development aimed at boosting productivity in Eswatini’s agriculture sector,” explains Dr Sithole. “By doing so, it will enhance food and nutritional security and uplift incomes. However, the project’s impact goes beyond agriculture.” The project involves the ongoing construction of the Mpakeni Dam and main conveyance systems to boost water availability for agricultural, industrial and domestic use. The over E2 billion initiative is part of a broader strategy to enhance agricultural productivity by providing reliable irrigation to farmers, which is crucial for ensuring food security and boosting export potential.
Additionally, it will address water shortages in communities, significantly improving the quality of life for thousands of households. The MNWAP is also expected to attract investments in agro-industries, creating a ripple effect across the economy. By addressing water scarcity, the project will play a vital role in mitigating the impacts of climate change, which have adversely affected agriculture in recent years. In addition to agricultural development, MNWAP will establish a Special Agro-Processing Zone (SAPZ) for oil and textile production, creating vast industrial opportunities. Dr. Sithole also highlights the infrastructure investments in transportation, energy and urban development, designed to meet the growing population’s needs.
With Eswatini strategically located between South Africa and Mozambique, Sithole envisions MNWAP evolving into a centre of regional excellence. The project will support agriculture while offering opportunities in education, health and ecotourism. Investors can tap into a market with increasing demand for renewable energy, infrastructure and urban services.
Furthermore, a standout feature of MNWAP is its emphasis on renewable energy generation. Eswatini currently imports around 80 per cent of its power from South Africa and Mozambique, but MNWAP aims to contribute to the kingdom’s energy independence.
Construction of the Central Bank of Eswatini Complex
The Central Bank of Eswatini (CBE) has already opened the tender for the much-anticipated smart complex and the invitation is open to the international community.
The bank intends to engage the services of an engineering, procurement and construction (EPC) contractor (i.e., the contractor to be the lead entity in the team) to undertake the design and construction of a smart complex. The deadline for submission of queries is January 31, 2025. The proposed state-of-the-art CBE complex, to be built at Ezulwini, is projected to cost E1 billion, with the first phase expected to be completed in 36 months.
The project scope entails the following:
- Building 1: Main Headquarters Building: The project involves the construction of a high-rise building with 18 floors, two additional floors dedicated to services at the top and one basement floor.
- Building 2: Museum, Innovation Hub, and Library: A two-floor building to accommodate a museum, an innovation hub and a library.
- Building 3: A three-storey parking facility.
The CBE Complex is expected to conform to a minimum four-star green building rating, as certified by the Green Building Council of South Africa (GBCSA). The GBCSA’s goal is to move towards net zero carbon new buildings by 2030 and net zero existing buildings by 2050. The GBCSA uses a rating system called Green Star SA to certify buildings as green and the four-star rating simply means the building is constructed following best practices. By definition, a green building is a building that, in its design, construction, or operation, reduces or eliminates negative impacts and can create positive impacts on our climate and natural environment.They preserve precious natural resources and improve our quality of life.
Completion and commissioning of factory shells
Eswatini is set to enhance its industrial landscape in 2025 with the commencement of operations in several factory shells, aiming to boost economic growth and employment.
Ndzevane Factory Shell. The Ndzevane Factory Shell, now 98 per cent complete, is scheduled for handover to an investor in February 2025. This development is anticipated to create approximately 1 000 jobs, significantly contributing to the local economy.
Lubuli Factory Shell
Similarly, the Lubuli Factory Shell is expected to be completed by February 2025. Commerce Minister Manqoba Khumalo has appealed to Parliament for support in this initiative, emphasising its potential to stimulate economic activity and job creation in the region.
Hlatikhulu Cardboard Factory Shell
In response to the destruction during the June 2021 civil unrest, the Hlatikhulu Cardboard Factory Shell is undergoing reconstruction. The project, awarded to Roots Construction at a cost exceeding E56 million, is part of efforts to revitalise industrial capacity and employment opportunities in the area. These developments align with Eswatini’s National Development Plan for 2023/24 – 2027/28, which emphasises industrial growth and job creation. The operationalisation of these factory shells is expected to attract investment, enhance production capabilities, and provide substantial employment opportunities, thereby contributing to the nation’s economic development.
Edwaleni Solar Power Station
Although construction began in 2021, the Edwaleni Solar Power Station, a 100MW solar power plant complemented by a large battery energy storage system, is anticipated to become operational in 2025. This project aims to increase Eswatini’s energy independence and contribute to the Southern African Power Pool. The overall progress of the project is 92 per cent, against a planned 100 per cent. The foundations for steel monopole structures are yet to be constructed. The contractor has erected 162 out of 171 lattice towers and the Contractor failed to catch up with the activities as per the catch-up plan.
The contractor has submitted a completion plan, which runs up to November 11, 2024. All works have been completed at the substation, only the commissioning of equipment is pending, the commissioning engineer failed to mobilise and shall do so in the next quarter. Due to unforeseen circumstances, the project suffered cost overruns of E28 million, specifically to cover for compensation of landowners for right-of-way for the construction of the overhead power line. These projects align with Eswatini’s National Development Plan for 2023/24 – 2027/28, which emphasises investments in infrastructure, energy and water resources to stimulate economic growth and improve living standards.The successful implementation of these initiatives is expected to enhance Eswatini’s economic landscape, create employment opportunities and improve access to essential services for its citizens.
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