This article examines the implications of Eswatini’s new local content policy for public construction procurement.
Overview of the New Policy
The government of Eswatini has announced a significant shift in its public procurement strategy, mandating that 80 per cent of construction materials used in public projects be sourced locally. This initiative, articulated by Thulani Mkhaliphi, the Controlling Officer of the Ministry of Public Works and Transport, aims to create jobs and retain financial resources within the country. The reforms are being developed in collaboration with the Construction Industry Council (CIC) to address high unemployment rates and to strengthen the domestic construction value chain. By prioritising local sourcing, the government hopes to mitigate the current trend of capital flight associated with imported construction materials.
Impact on Local Businesses
The proposed local content requirement is expected to have a profound impact on local businesses, particularly in the construction sector. Currently, many construction inputs, including basic materials like nails and shovels, are imported, which has raised concerns about the sustainability of local firms. The new policy aims to foster an ecosystem capable of producing necessary supplies domestically, thereby retaining value and skills within Eswatini. Mkhaliphi emphasised that this approach is not limited to large contractors; it also encourages the development of artisanal skills and greater participation from smaller local enterprises, thus broadening the economic benefits of public infrastructure projects.
Challenges and Future Directions
While the local content policy presents opportunities for local manufacturers and contractors, it also highlights existing gaps in the domestic supply chain. Mkhaliphi pointed out that the construction sector consumes over three billion nails annually, all of which are currently imported. To address this, the government plans to implement a one per cent import levy on selected foreign-manufactured building materials to protect local producers and stimulate investment in domestic manufacturing. Additionally, a centralised platform for advertising and allocating government contracts is proposed to enhance transparency and ensure fair access for local firms. These measures aim to transform public construction expenditure into a catalyst for domestic production and employment.
IN NUMBERS
The enforcement of local content requirements in Eswatini’s public construction projects marks a significant policy shift aimed at bolstering the local economy and creating jobs. As the government collaborates with industry stakeholders to refine these reforms, the potential for increased local participation in public procurement could reshape the construction landscape in the country.
Reported from times.co.sz, 2026-08-17. The Tender Wire is published by Otnox.
