Eswatini Contractors Demand Inclusion in E2.5 Billion AfDB Project

A fierce debate is raging in Eswatini’s construction sector, where local contractors are openly challenging the government and the African Development Bank (AfDB) over the E2.5 billion MR14/MR21 road upgrade, a transformative project meant to boost regional connectivity, but now a flashpoint for questions about economic sovereignty, empowerment, and the true meaning of “development.”

The controversy erupted at a recent Construction Industry Council (CIC) Stakeholder Forum, where Ncamiso Ndwandwe, Managing Director of Umphumuzi Projects, captured the frustration of many:

“We want 80% of the work, not crumbs. Not leftovers. We are licensed, registered, and trained, yet we continue to be sidelined in favour of foreign firms.”

The MR21/MR14 project, a 105.9 km road stretching from Siphofaneni to Siphambanweni, is funded by a E2.5 billion AfDB loan. While government officials tout the project as a game-changer for economic growth, local contractors argue the tender’s structure, particularly its financial requirements, effectively shuts them out. To participate, firms must provide:

E45.5 million in bid security just to enter the process
10% performance security (E250 million)
15% advance payment guarantee (E375 million)
Total securities required: Over E675 million upfront

“These aren’t safeguards,” said one contractor. “They’re exclusion tools designed for international giants, not homegrown companies.”

Government Defends Process, Contractors Push Back

Minister of Public Works and Transport Chief Ndlaluhlaza Ndwandwe insists the process is fair and transparent, and follows AfDB’s Open Competitive Bidding International (OCBI) framework, which allows all firms from member countries to compete equally.

He points to provisions reserving 30% of the project value (around E700 million) for local subcontractors, the creation of over 1,500 jobs for emaSwati, and opportunities for joint ventures (JVs) to promote skills transfer.

But contractors say these measures are superficial.

“That 30% is just the dirty work. If we don’t build the road, we’re just sweeping it,” one contractor lamented. “We’re reduced to junior partners in our own country. We tick the box, they take the cheque,” added another.

They argue that while the government encourages JVs, in practice, foreign companies retain control and profits, with locals relegated to minor roles. The skills transfer promised rarely materializes into genuine technical capacity or business growth.

A Systemic Problem: “Spectators in Our Own Economy”

The outcry is not limited to this project. Contractors cite a pattern in donor-funded infrastructure, such as the E2.6 billion Mpakeni Dam contract, where local firms were locked out by similarly high financial thresholds. Even when opportunities are reserved for locals, they are often for low-value tasks, with the bulk of profits and decision-making flowing abroad.

IV ZEAL VITAMIN

“We’re spectators in our own economy,” said a Grade B contractor. “The scraps don’t build industries. Full participation does.” The frustration runs deeper as contractors point out that the E2.5 billion is a loan, not a grant. Eswatini will repay the funds, yet contractors estimate over 90% of the money will leave the country, paid to foreign contractors, consultants, and suppliers.

“It’s fiscal leakage disguised as development,” said Simanga Lukhele, Managing Director of CSD Investments.

Calls for Reform: Breaking the Cycle

Local contractors are demanding urgent reforms:

Break mega-projects into smaller, accessible lots for SMEs
Enforce local hiring and subcontracting quotas with real power-sharing in JVs
Include locals from the project design stage
Negotiate future loans with explicit local benefit clauses
Measure success not just by infrastructure built, but by jobs created, skills transferred, and local businesses grown

They also want early consultation with the private sector before funding terms are finalized, to avoid agreements that effectively eliminate local competition.

Government and CIC Respond: Acknowledging the Challenge

CIC CEO Maqhawe Mnisi acknowledged the need for change, citing ongoing reviews of participation thresholds and the reality that 80% of building materials and some skills are still imported.

“Our long-term strategy is to build an industry that is owned, operated, and sustained by locals. However, that journey will require structural reforms, capacity development, and phased policy shifts,” said Mnisi.

The Ministry of Public Works and Transport says it is working with CIC to design new frameworks for local contractor involvement, including National Competitive Bidding (NCB) for certain project components and encouraging JVs under AfDB guidelines.

A Question of Development: For Whom?

The MR14/MR21 project is a microcosm of a broader dilemma facing many African nations: how to balance the need for international financing and technical expertise with the imperative to empower local industry and retain economic value at home.

As Eswatini’s Parliament and His Majesty King Mswati III weigh final approval of the AfDB loan, contractors are making a last appeal—not for handouts, but for a seat at the table.

“This isn’t about handouts, it’s about fairness. Eswatini’s builders deserve a place at the table, not just crumbs on the floor,” said Lukhele.

Unless financing models and procurement policies are reformed to align with national empowerment goals, Eswatini risks building infrastructure that benefits everyone but its own people, a development paradox that demands urgent attention, not just in Eswatini, but across Africa.