The construction industry in Eswatini is facing challenges as the country imports building blocks made of cement and concrete, despite having local manufacturers. An investigation by the Times of Swaziland found that precast products manufactured in Eswatini are being imported from South Africa, with a recent shipment valued at E6 million and weighing 4,017,050 kg. This has raised concerns among economists that the tendency is directly and heavily hurting the economy and government's cash flow.
According to data from the World Integrated Trade Solution (WITS), Eswatini has been importing construction materials from South Africa and other parts of the world, particularly China. The total value of these imports is E41 million (US$2.55 million). A Comtrade database shows that E18 million was spent on imports of "concrete and artificial stone", which are readily available in Eswatini. The Comtrade database is used by the United Nations (UN) and is the official UN repository, aggregating detailed annual and monthly international trade statistics from around the world.
Local small-scale manufacturers are now agents for precast companies in South Africa, as they cannot compete with them. For instance, a Matsapha-based company stocks products from Global Precast, a South African company. Global Precast has issued a statement saying that Eswatini can place orders for its products through the company. This has raised concerns that local manufacturers are not being supported, despite the government's call for local support through the 'Buy Eswatini' campaign.
Eswatini has well-established firms that manufacture heavy-duty and standard precast concrete products catering for structural, civil and residential construction. These companies specialise in infrastructure, civil engineering and general precast solutions that include portal culverts, concrete pipes and factory-moulded stormwater and sewage pipes. They also manufacture heavy-duty utility access rings, roadway and walkway edging blocks. However, despite this, imports of building materials continue.
The government has stated that it wants 80 per cent of construction materials used in public projects to be sourced locally in order to create jobs and keep more money in Eswatini. The Ministry of Public Works and Transport is overhauling its procurement system to ensure that infrastructure spending generates greater economic benefits for the country. The current system allows much of the money borrowed to finance infrastructure projects to leave the country, because construction materials and other inputs are largely imported.
The Principal Secretary in the Ministry of Public Works and Transport, Thulani Mkhaliphi, said that the problem goes beyond the awarding of contracts to foreign companies, as Eswatini has not developed the value chain needed to supply the construction industry locally. The proposed procurement policy would ensure that the country's construction industry is supported, and that jobs are created for locals.
Imports of articles of cement, concrete or artificial stone from China have fallen sharply, now standing at only E7,000. Despite this, the government and local manufacturers are working together to address the issue of imports and to support local production. The Construction Industry Council (CIC) is also involved in developing reforms to address unemployment and strengthen the domestic construction value chain.
Key points
- Eswatini imports building blocks from South Africa and China despite having local manufacturers.
- The government wants 80 per cent of construction materials used in public projects to be sourced locally.
- Local manufacturers are working with the government to address the issue of imports and support local production.
