Times Of Swaziland: CONSTRUCTION REGISTERED PROJECTS SURGE BY 63%

CONSTRUCTION REGISTERED PROJECTS SURGE BY 63%
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Nhlanganiso Mkhonta on 12/02/2025 09:09:00


MBABANE – The construction industry has seen a significant increase in the
total number of projects registered (including completions and ongoing
projects).
According to the Construction Industry Council (CIC) performance report for the
year 2023/24, the projects increased by 63 per cent year-on-year (y-y) for the
2023/24 financial period to E5.6 billion from E3.4 billion in 2022/23.
However, included in 2023/24 is E2.6 billion for the construction of the Mpakeni
Dam and associated works (the largest project registered over the last two
financial periods), awarded to the Sakhalive JV. Excluding the Mpakeni Dam and
other completed projects, the value of ongoing projects registered increased by
20 per cent to E2.2 billion for the 2023/24 financial period.
Improved
The current value of ongoing projects in 2023/24 was around five times larger
than what was completed in 2022/23 (excluding the dam), suggesting improved
construction activity during 2023/24, which should positively impact
construction activity into 2024/25. The value of ongoing general building works
registered rose 96 per cent, against a 14 per cent decline in general civil
works.  The Mpakeni Dam is registered as a foreign works contract and is not
included as a general civil works project. The value of ongoing Joint Venture
projects registered increased by over 900 per cent, although representing less
than 1 per cent of the total value of ongoing projects registered.
The net change in the value of registered projects, the difference between the
value of ongoing and completed projects, increased by E1 billion in 2023/24 to
E1.8 billion. Parastatals and government showed the most substantial increase
during this period, and a turnaround was also seen in the private sector
compared to the previous financial year. The contribution of parastatals to the
value of ongoing registered projects increased to 69 per cent in 2023/24 from 40
per cent in the 2022/23 financial year (linked to the multi-billion Mpakeni Dam
project) and the private sector also gained from 5 to 11 per cent.
This means the contribution by government sector fell from 52 per cent in
2022/23 to 18 per cent. Projects registered by parastatals as ‘ongoing’ in
2023/24 represented 69 per cent of the total value of projects registered, an
increase of 348 per cent thanks to the E2.6 billion Dam project, which otherwise
would have shown a 77 per cent decrease to just under E800 million.  Government
projects fell by 9 per cent to E903 million (with a contribution rate of 18 per
cent, the second largest owner classification category), followed by the private
sector, where the value rose five-fold to E528 million and a contribution rate
of 11 per cent.