MBABANE – Government wants 80 per cent of construction materials used in public projects to be sourced locally to create jobs and keep more money in Eswatini.
The Ministry of Public Works and Transport is overhauling its procurement system to ensure infrastructure spending generates greater economic benefits for the country.
The ministry’s Controlling Officer, Thulani Mkhaliphi, said the reforms were being developed with the Construction Industry Council (CIC) to address unemployment and strengthen the domestic construction value chain. He said the current system allowed much of the money borrowed to finance infrastructure projects to leave the country because construction materials and other inputs were largely imported. “We are literally improving other economies while our own backyard is living hand-to-mouth,” Mkhaliphi said.
He said this had contributed to concerns among local construction companies that the country was effectively exporting jobs. However, Mkhaliphi said the problem went beyond the awarding of contracts to foreign companies because Eswatini had not developed the value chain needed to supply the construction industry locally. He said government wanted to create an ecosystem capable of producing the supplies required by the building sector, retaining value, skills and outputs within the kingdom.
The proposed procurement policy would, therefore, require 80 per cent of products needed for construction projects to be sourced locally. Where materials could not be obtained in Eswatini, procurement would, as a second option, be directed to suppliers within the Southern African Development Community (SADC).
The policy also proposes a one per cent import levy on selected foreign-manufactured building materials.
The levy is intended to protect domestic producers from foreign competition and encourage greater investment in local manufacturing. Another proposed measure is a centralised platform for advertising and allocating government construction contracts. Mkhaliphi said the platform would improve transparency and ensure that local firms had fair access to government tenders. He said the objective was to create sustained demand for local manufacturers, suppliers and contractors while generating employment.
The opportunity is not limited to large construction companies, with the policy also providing for the development of artisanal skills and greater participation by local businesses. Mkhaliphi illustrated the scale of the potential market by noting that the construction sector uses more than three billion nails a year, yet all of them are imported. Basic construction products such as shovels and steel pipes are also imported, highlighting gaps in the domestic supply chain. The reforms are aligned with the National Construction Industry Policy 2025–2031, which seeks to strengthen local participation through procurement preferences, support for local firms and skills development. Mkhaliphi said government and the CIC, led by Chief Executive Officer Maqhawe Mnisi, were working on policies to position local businesses to benefit more from infrastructure expenditure. Under the proposed framework, government-funded infrastructure projects would give preference to local manufacturers and contractors. The broader aim is to turn public construction expenditure into a driver of domestic production rather than simply a means of delivering roads, bridges and public buildings. Government expects the approach to stimulate manufacturing, strengthen the construction supply chain, develop skills and create employment.
The reforms would also seek to ensure that more infrastructure spending generates local wages, tax revenue, supplier opportunities and small-business growth.
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