Construction works registered under foreign firms in Eswatini reached E6.13 billion in 2025/26, a value equivalent to about 79 per cent of the E7.78 billion allocated for capital expenditure in the 2026/27 national budget. The comparison is significant for the national budget, but the figures cover different financial years and do not show government payments directly to foreign companies.
A large value, but not a government spending total
The Construction Industry Council recorded E6.13 billion in construction works undertaken by foreign firms during the 2025/26 financial year. Government has allocated E7.78 billion for capital expenditure in 2026/27, covering roads, water infrastructure, buildings and other long-term investments. The comparison therefore places the registered value of foreign works alongside a later budget allocation, rather than matching payments in the same period. The source also cautions that E6.13 billion represents construction works registered under foreign firms, not government expenditure alone. It does not mean the full value was funded by the state or paid directly to foreign companies.
Foreign firms held fewer, higher-value projects
The CIC report registered 558 construction projects in 2025/26. Foreign firms were linked to 25 projects, about four per cent of the total, but those projects represented 55 per cent of the combined registered value of E11.24 billion. Local contractors accounted for 533 projects, or 96 per cent, valued at E5.11 billion, equal to 45 per cent of the registered value. The pattern indicates that local businesses carried out most projects by number, while foreign firms were concentrated in projects with greater combined value. The report connects that concentration with civil and specialised works, where financing, equipment, guarantees, skills and cash flow can affect a bidder’s ability to compete.
Policy proposals target access and capability
The Construction Industry Policy 2024–2030 identifies access to finance, skills shortages, competition, payment delays, regulation of foreign companies and support for local manufacturers and suppliers as industry challenges. Its proposed response includes preferences and quotas for local contractors and consultants, a Construction Industry Development Fund, and requirements for joint ventures involving foreign firms. The proposed fund could offer low-interest loans, loan guarantees and equipment grants, with support from government, development partners and a levy on large projects. Joint ventures would also face proposed local employment, skills-transfer and capacity-building targets, aimed at helping domestic companies take on more complex work.
Transparency would shape future competition
The policy proposes public disclosure of construction contracts, bidding processes, winning bids and contract terms, alongside a centralised platform for advertising and allocating construction projects. It also calls for anonymous reporting channels for suspected corruption, collusion and other irregularities. These measures would give bidders and the public more information about how opportunities are advertised and awarded, while registration with the CIC from the beginning is intended to improve project monitoring. The policy also supports locally sourced materials and stronger domestic manufacturing, although the source notes that local producers would still need to meet required specifications, prices and delivery schedules.
| Fact | Value |
|---|---|
| Foreign-firm construction works recorded in 2025/26 | E6.13 billion |
| 2026/27 capital expenditure allocation | E7.78 billion |
| Total government expenditure budgeted for 2026/27 | E36.92 billion |
| Construction projects registered in 2025/26 | 558 |
| Projects linked to foreign firms | 25 |
| Total registered construction value | E11.24 billion |
| Local contractors’ registered project value | E5.11 billion |
Local contractors undertook most of the registered projects, while foreign firms accounted for the larger share of their combined value.
WHY IT MATTERS
The figures show why the value and structure of construction procurement matter alongside the number of contracts. Foreign firms held a small share of projects by count but a much larger share of registered value, while proposed preferences, quotas, finance, skills-transfer requirements and disclosure rules could alter how domestic and foreign businesses compete for future infrastructure work.
Reported from times.co.sz, 2026-10-12. The Tender Wire is published by Otnox.
