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Local firms must step up to win internationally funded projects

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Sinyamantulwa Potable Water Scheme is one of the projects spearheaded by EWADE at E53 million by a local contractor.
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Eswatini has seen a surge in internationally funded development projects in infrastructure, agriculture, and energy. These projects present enormous opportunities for local companies, yet many struggle to compete with experienced international bidders.

A procurement expert, speaking on condition of anonymity as he is not mandated to speak to the media, explained that the challenge is not always a lack of capability but a lack of preparedness. “Local firms often underestimate the documentation, standardisation, and strict compliance required by international funders,” he said. “Incomplete submissions, missing audited financial statements, inadequate proof of past experience, or absence of required certifications frequently lead to early disqualification.”

He pointed out that foreign companies consistently outperform local bidders because they maintain dedicated bid teams, anticipate compliance questions, and ensure all technical and financial documents meet international standards. “Their bids are robust, low-risk, and fully compliant. That is why they often appear more competitive,” he noted.

A common misconception, he added, is that implementing agencies favour foreign firms. “This is not true. Evaluations are strictly governed by funders’ rules. Winning depends entirely on compliance, technical merit, and financial capacity. If local companies lose out, it’s because they fail to meet these rigorous standards, not because of bias.”

Strict adherence to donor procurement rules is critical. Agencies like EWADE must follow these regulations to avoid legal, financial, and reputational risks. Any compromise could result in project delays, sanctions, or even the loss of funding for the country.

The expert highlighted key areas where local firms can improve. Financial capacity, past experience on similar projects, and access to specialised technical skills are decisive evaluation criteria. Firms are advised to invest in proper bid preparation teams, ensure financial records are audit-ready, and familiarise themselves with donor guidelines. “Attend workshops, study previous successful bids, and benchmark your submissions,” he recommended.

Strategic partnerships and joint ventures are also essential, particularly for large or complex tenders. “Partnerships allow firms to combine technical skills, financial strength, and experience. This is a pathway to larger projects and capacity building,” he explained.

Pricing and bid guarantees remain stumbling blocks. Overpricing can lose contracts, while underpricing can signal poor planning. Performance bonds and bid guarantees are non-negotiable, protecting both the funder and the implementing agency. Local companies must engage banks early to secure these instruments and meet donor specifications.

Finally, the expert urged local firms to prioritise specialised bid teams and proper documentation. “Invest in training, standardise templates, and produce professional submissions. Proper documentation reduces risk and significantly improves success rates,” he said.

He also underscored the role of institutions such as the Construction Industry Council (CIC) and the Eswatini Public Procurement Regulatory Agency (ESPPRA). These bodies should provide training, certification, mentoring, and networking opportunities to help local firms compete regionally and internationally.

“Local companies must step up,” he concluded. “Internationally funded projects can be a platform for growth, but only if firms invest in compliance, capacity, partnerships, and strategic planning. Those that do will not just win contracts, they will build sustainable businesses capable of competing beyond Eswatini.”

Sakhalive JV employees working on the spillway which is one of the Mpakeno Dam milestones.
Sakhalive JV employees working on the spillway which is one of the Mpakeno Dam milestones.

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Written by
Mthobisi Buthelezi

Mthobisi Buthelezi - Sections and Supplements Editor with the Times of Eswatini overseeing the publishing and content for the Motoring on Thursday, Property on Saturday, Tekulima (Farming) on Wednesday and Business Opportunities on Monday. Contact: 7936 3694 Email: mthobisib@times.co.sz

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