Africa-Press – Eswatini. The Eswatini government has come under fire from local contractors who claim they are being excluded from a multibillion-emalangeni road construction deal, a project they argue is structured to benefit foreign firms while sidelining domestic players.
At the centre of the storm is the E2.5 billion MR14/MR21 road project, to be financed by the African Development Bank (AfDB).
Local contractors have slammed the deal’s bidding conditions as prohibitive, accusing the government of failing to secure terms that would allow indigenous firms a fair shot at participation.
Contractors point to financial requirements they say are simply beyond reach. These include a staggering E45.5 million in bid security just to enter the first stage, followed by a 10% performance security of approximately E250 million if awarded the tender, and a 15% advance security worth E375 million.
In total, prospective bidders must lock in more than E675 million — funds most local firms cannot access.
In response, the Ministry of Public Works and Transport insists the project remains open to emaSwati. In a statement issued Monday,
Principal Secretary Thulani Mkhaliphi said the international bidding process, known as Open Competitive Bidding International (OCBI), allows local companies to form joint ventures (JVs) with foreign contractors.
“The project design encourages local participation based on their capacity and promotes technology transfer,” said Mkhaliphi, who added that components of the project will also be procured through National Competitive Bidding (NCB), reserved exclusively for local firms.
“Local contractors are eligible to undertake this portion of the works, thus providing tangible opportunities for local industry participation and empowerment.
This method is exclusively open to local contractors and consultants, further reinforcing the Ministry’s commitment to inclusivity and national capacity development.
As the preparations for the commencement of this project advance, the Ministry of Public Works and Transport will host a media session to inform the public about the components and details of the project in due course,” Mkhaliphi emphasised.
However, contractors aren’t convinced. They argue the invitation to form JVs is a smokescreen, designed to give the illusion of inclusion while the real profits and control are siphoned abroad.
“There’s nothing complex about the roads in this project that would justify excluding local firms on the grounds of ‘skills transfer,’” said one frustrated contractor. “We’ve built roads in Eswatini before, and we can do it again. This isn’t about capability — it’s about capital.”
Contractors are expressing deep concern over the statement made by the Ministry of Works, perceiving it as not only insensitive but also reflective of a Minister who appears indifferent to the struggles facing a collapsing industry.
Currently, hundreds of professionals within this sector find themselves unemployed, a situation that is becoming increasingly dire.
Ministry of Public Works Principal Secretary Thulani Mkhaliphi
Many in the industry view this latest move by the Minister as a “nail in the coffin,” further exacerbating their challenges.
Moreover, the Ministry’s assertion that local contractors require “skills transfer” for road construction projects adds insult to injury.
Eswatini contractors have earned a reputation as some of the finest in Africa, particularly in the area of road construction.
This characterization undermines their expertise and contributions, intensifying frustrations among professionals who feel their skills and accomplishments are being overlooked.
The situation demands urgent attention and dialogue to foster a more supportive environment for local contractors and to address the industry’s pressing needs.
Many believe the Ministry of Finance should have negotiated better terms when securing the AfDB loan, ensuring that more of the economic benefit remains in-country.
Suggestions included partitioning the massive project into smaller “lots,” which would reduce the security bond thresholds and open the door to small and medium-sized local companies.
The failure of the ministry of finance to protect the interests of local companies has left them irked and riled up.
The Times of Eswatini reported that contractors were disappointed the government had not used its bargaining power to prioritise domestic economic value such as local taxes, wages, and material sourcing when engaging with international financiers.
Afrotim Construction Director Isaac Magagula expressed deep concern over what he described as a recurring pattern in state procurement practices.
He said the MR14/MR21 tender closely mirrors the previous E2.6 billion Mpakeni Dam contract, which was awarded to the Sakhalive Joint Venture, a partnership between Chinese giants Yellowriver and Sinohydro Bureau 3 — with no local bids even submitted.
“The Mpakeni Dam project required a bank guarantee of E260 million, again beyond the reach of local firms,” said Magagula.
“These figures are not just high, they are exclusionary. They create a structural barrier that locks emaSwati out of their own country’s development.”
Sakhalive JV’s only rival in the Mpakeni Dam bid was the South African WHBHO/Stefanutti Stocks JV. The tender was issued by the Eswatini Water and Agricultural Development Enterprise (EWADE) for the Mkhondvo-Ngwavuma Water Augmentation Programme (MNWAP), but local firms didn’t stand a chance.
The bidding conditions, contractors say, are set with foreign capital in mind and foreign profits as a result.
Magagula warned that this approach runs counter to His Majesty King Mswati III’s vision for empowering emaSwati to drive national development.
Contractors are now calling for serious reform in how Eswatini negotiates development financing, particularly with multilateral lenders.
They want explicit clauses that protect local industry participation — not vague promises of skills transfer, but tangible opportunities tied to the nation’s economic sovereignty.
They are also appealing for a policy shift that includes early consultation with the private sector before signing off on funding terms that effectively eliminate local competition.
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