The country battles a stubborn problem of unemployment, with official statistics placing national unemployment at 33 per cent of the total labour force while youth unemployment is estimated north of the 50 per cent range.
The paradox lies in the fact that about 90 per cent of the nation’s total capital project allocation is taken up by foreign contractors, effectively exporting the multiplier effect to the destination of final profits while it leaks from the domestic economy. Beyond exporting the multiplier, it robs the nation of the potential to benefit from the promise of public works programmes as a catalyst for economic growth and development. Also, public works programmes are a crucial tool for reducing unemployment.
The labour market has proven time and again that it is not producing the jobs required to absorb entrants into the labour market; as such, the unemployment problem is not just an economic problem; rather, it has escalated to a level where it is a social emergency that threatens stability and development. Hence the urgent need to recalibrate our public works programmes architecture so that it is responsive to this emerging threat to national dignity.
Public works programmes
Public works programmes are government-led initiatives that provide temporary paid employment to vulnerable and unemployed populations through labour intensive projects in infrastructure, environmental management and community services. They serve a dual purpose: Offering immediate income support and social protection to households, while simultaneously creating or rehabilitating public assets such as roads, irrigation systems, schools and clinics. Designed to be self targeting by offering modest wages and demanding work, these programmes help reduce poverty, strengthen resilience during economic shocks and foster local participation.
When integrated with training and skills development, they can also enhance employability beyond the project’s lifespan. Globally, examples such as India’s Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) and South Africa’s Expanded Public Works Programme (EPWP) show how public works can be institutionalised to absorb large numbers of unemployed workers, while in the kingdom, capital expenditure on infrastructure can be strategically leveraged to expand such programmes, ensuring that investments generate both durable assets and meaningful employment opportunities without capital leakages.
A case for public works programmes
Public works programmes offer a practical tool to bridge the gap between joblessness and opportunity. Properly designed, they can provide immediate income support to vulnerable households while creating community assets such as rural roads, irrigation systems, health facilities and sustainable local business ventures, among others. These programmes are not a panacea, but they can serve as a vital safety net and a stepping stone toward broader employment creation.
Lessons from abroad
Countries across the world have successfully implemented public works as part of their employment strategies. India’s MGNREGA guarantees 100 days of paid work per rural household annually, creating millions of jobs while building rural infrastructure. South Africa’s EPWP has absorbed thousands of unemployed workers into projects in infrastructure, environment and social services. In Latin America, cashforwork schemes have been deployed during economic crises to stabilise household incomes and prevent social unrest. These examples demonstrate that public works, when scaled and institutionalised, can be both a social protection instrument and a driver of inclusive development.
Designing for impact
In order for the country to maximise the effectiveness of public works programmes, their design must be deliberately employment focused. Projects should be structured to prioritise labourintensive methods, ensuring that more workers are absorbed rather than relying solely on mechanisation. Local participation is critical, with procurement rules favouring domestic firms and mandating local content to prevent the leakage of benefits to foreign contractors. At the same time, programmes should integrate training components so that participants acquire transferable skills that enhance their employability beyond the project’s lifespan. Given the scale of youth unemployment, targeting young people must be a priority, with opportunities linked to emerging sectors such as agroprocessing, ICT and light manufacturing. In this way, public works can serve not only as shortterm relief, but also as a bridge to sustainable livelihoods.
Leveraging capital expenditure budget
The country allocates billions annually to capital expenditure, yet much of this spending fails to translate into sustainable employment. By deliberately channelling a portion of the capital budget into labourintensive public works, government can ensure that infrastructure projects double as jobcreation vehicles.
This requires reengineering procurement frameworks to favour local contractors, local materials and local labour, thereby reducing capital leakages through profit repatriation and imported inputs. In doing so, capital expenditure becomes not just a line item for infrastructure, but a strategic instrument for employment generation and poverty reduction.
Also, the maintenance works of public infrastructure should be devolved to the inkhundla level, with local companies in charge of maintaining infrastructure at that level. In so doing, the nation would create a broad economic base with development initiatives owned and maintained by the community. While at the same time, creating a sustainable SME base which could be leveraged to sustain long-term growth.
Clarion call
The era of exporting Emalangeni abroad to fuel foreign growth is over; deliberate policy must localise capital expenditure, ensuring investments directly grow communities, support local enterprises, create jobs and prevent capital leakages.
