BY THEMBA ZWANE
MBABANE– Government, through the Ministry of Home Affairs, and the Construction Industry Council (CIC) Eswatini have convened a strategic meeting aimed at reshaping the construction sector to ensure emaSwati are given first preference in the issuance of contracts.
The Council reported that on 25 February 2026, it hosted a delegation from the Ministry for a high-level engagement focused on strengthening collaboration and clarifying regulatory roles within the industry.
In a statement, the CIC said the session centred on clarifying the Council’s mandate, particularly regarding the participation of foreign skills and contractors in Eswatini’s construction industry.
“The session focused on clarifying the Council’s mandate, particularly regarding the participation of foreign skills in Eswatini’s construction industry. This follow-up engagement strengthens collaboration in monitoring the entry of foreign contractors, while ensuring that local contractors are prioritised in line with the CIC mandate,” read the statement.
The engagement comes at a time when the country’s construction sector is experiencing significant activity driven by large-scale infrastructure projects between 2024 and 2026.
Among the headline projects is the multi-billion emalangeni new headquarters complex for the Central Bank of Eswatini in Ezulwini, awarded to Ingcebo Joint Venture at an estimated cost of approximately E2.97 billion. The project is one of the largest building contracts currently underway in the country and is expected to have a substantial economic impact.
Another key development shaping the sector is the Mkhondvo-Ngwavuma Water Augmentation Project, which forms part of broader efforts to strengthen water security and support agricultural and industrial growth.
According to available data, the construction sector contributes roughly three per cent to Eswatini’s Gross Domestic Product (GDP). While this share may appear modest, industry experts note that the sector has a strong multiplier effect across the economy.
CIC data indicates that for every E100 million invested in construction, broader economic activity can increase by between E150 million and E200 million. This multiplier effect stems from linkages to other industries such as manufacturing, transport, retail, and professional services.
Trends in Contractor Participation
The CIC has observed a mix of local and foreign contractor participation across projects. In terms of numbers, small-scale local contractors dominate the sector, particularly in general building works. However, large civil engineering and specialist infrastructure projects often involve foreign firms, either independently or through joint ventures with local companies.
This pattern has raised ongoing policy discussions about balancing the need for specialised expertise with the imperative to empower local contractors and retain more economic value within the country.
The recent engagement between the Ministry of Home Affairs and the CIC is therefore seen as a step towards tightening coordination, particularly in monitoring the entry and participation of foreign contractors and skilled personnel.
Under current regulations, all construction projects valued above E150 000 must be registered with the CIC. Contractors are also required to pay a levy, which supports regulatory oversight and industry development initiatives.
Sector Performance and Outlook
The CIC reported a slight decline in project registrations in late 2023. However, major public infrastructure investments — particularly in water, roads, and public buildings — continue to sustain activity in the sector through 2024 to 2026.
Government’s renewed emphasis on prioritising local contractors signals a policy direction aimed at deepening local participation, building domestic capacity, and ensuring that emaSwati derive maximum benefit from national infrastructure spending.
The strategic engagement between the Ministry of Home Affairs and the CIC is expected to strengthen enforcement of existing regulations while exploring ways to further align immigration controls, contractor registration processes, and procurement frameworks with national development objectives.
Stakeholders believe that sustained collaboration between regulators and Government ministries will be critical in ensuring that the construction boom translates into skills transfer, job creation, and long-term industry growth for local players.
(Courtesy Pic)
