Developing Stories
Friday, July 3, 2026    
Cabinet resolves to prioritise local contractors in major govt projects
Cabinet resolves to prioritise local contractors in major govt projects
Development
Friday, 3 July 2026 by Timothy Simelane

 

SITHOBELA – Prime Minister Russell Dlamini says Cabinet has resolved that emaSwati contractors should be given priority in the implementation of major government construction projects.

This will ensure that more money remains within the local economy and supports national economic growth.

Speaking during the launch of Phase I of the Eswatini Road Infrastructure Improvement Programme (ERIIP) at Sithobela Inkhundla, Dlamini said Cabinet reached the resolution during its meeting on Wednesday after extensive discussions on how government projects can maximise benefits for local businesses and communities.

The roads will be constructed by Stefanutti Stocks and WBHO (both of which are foreign-owned companies) and a local company AG Thomas.

“We want these works to be done by emaSwati contractors so that the money stays in Eswatini and continues circulating within our economy,” he said.

The prime minister explained that the decision forms part of government’s broader strategy to stimulate economic activity and achieve double-digit economic growth through increased local participation in infrastructure development.

Dlamini expressed gratitude to the African Development Bank (AfDB) for financing the road project, saying the institution’s support had enabled government to commence and complete critical infrastructure projects.

“I thank the African Development Bank for assisting government by ensuring that there are funds to start and complete this project,” he said.

He noted that the upgrading of the Siphofaneni-Sithobela-Maloma-Nsoko (MR14) Road would significantly improve the lives of residents, recalling that travelling the short distance between Maloma and Sithobela had taken an unnecessarily long time because of the poor condition of the road.

“Once the road is completed, the journey will take only about 30 minutes,” he said.

According to Dlamini, the deteriorating road had increased transport costs and damaged both private vehicles and public transport vehicles.

He said the improved road network would encourage more transport operators to service the area, giving residents more travel options instead of relying on only one or two buses.

The prime minister said improved infrastructure would also unlock economic opportunities for surrounding communities by making it easier for people to invest, trade and access essential services.

He described the launch as only the first phase of government’s broader vision to improve roads across the country.

“We want the whole country to have tarred roads so that people can travel safely,” he said.

Dlamini urged emaSwati to seize the economic opportunities that would come with the new infrastructure, stressing that government remains focused on accelerating economic development.

He said the 106-kilometre road project is expected to create about 1 600 jobs during construction, with employment opportunities benefitting women, young people and local communities.

African Development Bank commits  E16.8bn to Eswatini’s economic transformation

SITHOBELA – The African Development Bank (AfDB) has committed a US$1.03 billion (E16.8 billion) investment programme to support Eswatini’s economic transformation over the next five years, reaffirming its position as the country’s largest development partner.

Speaking during the official launch of Phase I of the Eswatini Road Infrastructure Improvement Programme (ERIIP), African Development Bank Deputy Director General for Southern Africa, Moono Mupotola, said the funding forms part of the bank’s 2025-2030 Country Strategy Paper, which is designed to accelerate the country’s economic growth through investments in infrastructure and private sector development.

Mupotola said the strategy is anchored on two priorities: Investing in climate-resilient infrastructure to reduce the cost of doing business, particularly in transport, energy, water and sanitation, and strengthening competitiveness to unlock private sector growth, create jobs and diversify the economy.

She said these priorities are fully aligned with government’s vision of building a more resilient, productive and inclusive economy.

Mupotola noted that the African Development Bank has been a trusted development partner to Eswatini for more than five decades. Since 1972, the bank has approved 71 loans and grants supporting transformative investments across agriculture, transport, energy, water and sanitation, governance, finance and communications.

She added that the bank’s active portfolio in Eswatini has grown significantly over the past five years and now comprises 10 operations valued at US$527 million, compared to US$226.7 million previously.

The portfolio includes investment projects, technical assistance, budget support operations and private sector financing, reflecting the bank’s confidence in Eswatini’s development potential.

Highlighting ongoing projects, Mupotola said the Manzini Region Water Supply and Sanitation Project and the Mkhondvo-Ngwavuma Water Augmentation Programme are improving water security while strengthening communities’ resilience to climate change.

She also noted that the bank has supported Eswatini during periods of economic uncertainty through policy-based budget support operations, including the Enhancing Economic Resilience and Competitiveness Programme, which has helped strengthen macroeconomic stability while supporting critical reforms.

*Full article available on Pressreader*  

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