CONSTRUCTION

PERFORMANCE
Prevailing economic conditions resulted in a general slow-down in the construction sector with high interest rates reducing demand for housing and limited credit was available for building projects. The high prices of raw materials also had a negative effect. This is in line with projections that this sector would decline in the short term and that Government’s investment in infrastructure would be its cornerstone for the immediate future.

Housing
The Sectional Title Deed Bill was passed during 2004 and came into effect in 2007. This legislation provides for the freehold purchase of apartments and townhouses, enabling people of lower income groups to own homes. Previously, a shortage of affordable quality housing coupled with high prices meant that owning a property was out of reach for many Swazis. Despite the slowdown, a number of private housing developments are being developed and the National Housing Board provides accommodation at affordable rentals.

COMMERCIAL BUILDINGS
Significant development of commercial and industrial buildings has taken place in recent years, particularly in Mbabane, Manzini and Matsapha. The partly completed Swaziland Association of Savings and Credit Cooperatives building and Corporate Place in Mbabane, on which work was curtailed for various reasons, continued to be an eyesore in the city. 

SHOPPING CENTRES
Swaziland offers a high standard of shopping facilities at its main centres and there are also good facilities in other towns. The oldest centre is the Swazi Plaza in Mbabane which has frequently been extended to meet growing needs and today plentiful parking is available there in the multi-storey car park. Opposite is the twin Mall complex and Manzini also has two large modern shopping complexes, The Hub and The Bhunu Mall. The Gables in Ezulwini was completed in 2001. A further major shopping centre is scheduled to be constructed at Manzini on the site of the old Trade Fair grounds.

GOVERNMENT PROJECTS
The Millennium Programme This is a suite of strategic projects, mainly in infrastructure and tourism. A number of these were mooted during the National Development Strategy preparation process, which is a 25 year vision crafted by the people of Swaziland. The program provides an opportunity for the country to strengthen its position as a destination for tourism, investment and commerce. Although the projects appear to stand alone, functionally they are highly interrelated, hence the decision to establish the Millennium Projects Unit for their coordination.
The Program is also a catalyst for building national pride and identity by developing economic confidence and creating jobs in both the large (macro) and SME (micro) sectors. It also seeks to change the role that Swaziland can play in both the regional and continental landscapes. The specific projects are:

New Sikhuphe International Airport
This is located 30 minutes drive from Manzini (the hub of Swaziland) and is already under construction. A 3.6 km runway, sufficient to land any size of aircraft, is almost complete. The target is for the airport to be complete and operational in time to receive aircraft arriving for to the 2010 FIFA World Cup.

Factory Shells
Several first grade, custom-built factory shells with a combined floor area of 248,565 sq. m. are mainly located at Matsapha, the country’s industrial capital, but also at other strategic locations such as Nhlangano, Ngwenya, Hlatikulu, Matsangeni, Mpaka and Ebuhleni. Employment created by companies leasing these facilities is estimated at 15,000 people (having reached a peak of 30,000 in the past). Theses employees comprise mainly women, with total earnings of about E200 million a year. This is against total Government investment of over E700 million.

Ezulwini Development
The rejuvenation of the Ezulwini Valley – the country’s main tourist centre – is another component of the Millennium Program. This will include a new convention centre, a five star hotel and a theme park, all of which will be constructed on the prime site of the old Yen Saan Hotel.

Mavuso Development
The historic town of Manzini, known as the hub of Swaziland, is also receiving a facelift. The Helimisi site, now known as the Mavuso International Exhibition and Trade Centre, has been operational since 2004. It has hosted a number of key national events, such as the annual International Trade Fair, the Job Summit, the National Agricultural Summit and the Smart Partnership Dialogue. A sports centre with a football stadium and facilities for indoor activities, such as volleyball, basketball, netball, squash and swimming was recently completed and has been officially opened by His Majesty King Mswati III. An adventure playground offering entertainment for the whole family, while also creating jobs, is planned at the same site, as well as a football stadium built to FIFA standards.

Government encourages the private sector to participate in all these ventures in mutually beneficial partnerships. People living in the areas earmarked for the Millennium Program are being relocated and fairly compensated using the internationally accepted principle of leaving them better off than they were previously.

Airports The imminent opening of Sikhupe International Airport in the north-east lowveld means that Swaziland will have a facility of global standard located on flat terrain with good visibility throughout the year. This is a new and strategic gateway to Swaziland and the region. It was unclear what would become of Matsapha, the small international airport that previously served Swaziland. 

GOVERNMENT BUILDINGS The new Mbabane Inter-ministerial Office block, which was started in 2000 is now complete and houses several Government Ministries. Blocks 1 to 6 were completed in 2004/05 and blocks 7 and 8 were finished in 2008/09. The conglomeration of Government ministries within a zone allows for improved service delivery as it reduces the time the public takes moving between departments for services. Government is also continuing with her rehabilitation programme and the current phase involves the Swaziland Broadcasting and Information Service (SBIS), Hlatikulu Government Hospital, Income Tax Building and Bhalegane Prison. Previous phases of the same programme rehabilitated the Swaziland College of Technology (SCOT), Swaziland Institute for Management and Public Administration (SIMPA), the Mbabane and Manzini Magistrates Courts and the Deeds Office, all of which were completed by 2008. Other Government buildings will be constructed in future years but it is worth noting that the programme is not keeping up with the demand.

ROADS
Swaziland has a well-developed road network linking different parts of the country. There is currently a total proclaimed network of 3,180 km, including district and main roads. The categorisation of a road into main or district depends on its significance in the network, its design standard and the traffic levels. In addition to the proclaimed network is a further 1,478 km of feeder roads, bringing the total network to about 4,658 km. The feeder roads are unpaved and most are not in good condition. Recent assessment shows that major rehabilitation has to be undertaken in order to bring feeder roads into maintainable standards at an estimated cost of E45,000/km in 2005 prices.

The Roads Department in the Ministry of Pubic Works and Transport is responsible for the planning, design, construction and maintenance of the proclaimed network. Full responsibility for maintaining the feeder roads was only given to the Ministry in 2000. Previously, feeder roads were not gazetted and responsibility fell between Ministries of Public Works and Transport and the then Agriculture and Co-operatives. The 1990s saw a turnaround in Government investment in road infrastructure as substantial amounts of public funds have been consistently put into road construction such that today the network ranks amongst the best in Africa. The late 1990s saw the first dual carriageway (i.e. Manzini- Mbabane) being opened to traffic and work immediately began on the Ngwenya- Nkoyoyo section of the MR3 which was opened to traffic in 2003. The Nkoyoyo- Mbabane section, including the bypass was opened to traffic in middle of 2009. This has reduced the travel time between Manzini/Matsapha (the biggest and busiest industrial towns located in central Swaziland) and Ngwenya (the busiest border with RSA located in western part of the country) to less than one hour.

The new Siteki-Mhlumeni road links the country with the port of Maputo in Mozambique, the only other country bordering Swaziland other than RSA. This Siteki-Mhlumeni route also serves the Lubombo Spatial Development Initiative area, a corridor project involving Swaziland, RSA and Mozambique. The Northern Main Road (MR5 and MR6) was also opened to traffic in 2007/08. This road links central Swaziland with the northern agriculture region of the country. It benefits the citrus growing areas of Ngonini and Tshaneni, the timber growing areas of Piggs Peak and Bulembu, the sugar growing areas of Mhlume, Vuvulane, Tabankulu and recently the SME dominated Maguga Irrigation Development Area and the maize growing areas of Ntfonjeni.

In total the road covers a distance of about 100km and actually forms an important link with South Africa and Mozambique. From two border posts, Mananga and Matsamo, the MR5 and MR6 ultimately link the country with the N4 mega highway of the Maputo Development Corridor. Swaziland is conscious of the importance of ensuring that the road network is properly maintained so that the investment benefits the country over a longer period. Applying the “user pays principle” through tolling is one of the options being pursued. A tolling project is therefore underway and will start with the MR3 and toll plazas will be constructed at Motshane and Mvutshini.

These are part of a partial cost recovery plan and the funds collected will be channelled towards road maintenance. Government is also implementing a small Public Works Programme, on a pilot basis, for the rehabilitation of feeder roads. This has been ongoing since 2004 and to date a total of 200km of rural feeder road has been upgraded using local people and labourintensive methods of construction. Other agencies, such as the then EU co-financed Microprojects Scheme, have also been active in assisting communities with rural access roads.

URBAN ROADS
These are the responsibility of the various city and town councils and vary from modest gravel roads to a high standard of tarred surface. In Manzini and Mbabane residential roads are continuing to be upgraded, and the areas served by dirt and gravel roads are gradually reducing. The City Council of Mbabane plans to eventually construct two new bypass roads - one to the south-west and one to the east of the city.

The upgrading of the Manzini bypass road, which serves the new International Conference and Exhibition Centre, newly completed Sports Centre and the still to be constructed Football Stadium and Adventure Playground was completed in 2004 and now provides a route of very high standard.

A loan in excess of E3.25 billion has been approved to finance the Lower Usutu Smallholder Irrigation Project. This will benefit about 20,000 people in the Lubombo region by supplying irrigation, while a further 22,000 people will benefit through job creation and business opportunities. LUSIP is a community development initiative with the overall goal of improving the standard of living through participation in commercial irrigated agriculture. The project is to be implemented in two phases and involves the construction of dams and canals and the development of 5000 ha of irrigation.The E2 billion development of the Komati River basin, a joint project with South Africa implemented by the Komati Basin Water Authority, puts water resources to optimum use and involved the construction of dams in the two countries for hydro-electric and agricultural projects. The project was completed in 2002. On the Swaziland side, the Maguga dam alone involved an E350 million contract, which was awarded to various companies. The E21 million Komati bridge was constructed under the Maguga Dam Road Joint Venture Project. Major dams have been constructed at strategic points under the Soil and Water Conservation Project, which is funded by various bodies.

CONSTRUCTION COMPANIES
The construction companies operating in Swaziland range from small local contractors to major companies,which are capable of carrying out highly specialised, multi-million Emalageni projects. With about 12,000 people employed, excluding foreign labour, this industry is a key source of employment and income in the kingdom. The range of work undertaken covers small buildings, multilevel projects, roads, dams and infrastructure. The larger operations have substantial investments in the country, including sophisticated plant and machinery as well as advanced infrastructure.

S&B Group Swaziland S&B Civils Roads and S&B Buildings are wholly-owned subsidiaries of the Stefanutti Stocks Group, a major competitor in southern Africa’s construction sector with a turnover of almost E5 billion, 8,000 employees, and the ability to manage all major projects. This came about in July 2008 when the JSE-listed civil engineering and construction group, Stefanutti & Bresson, merged with the international construction group, Stocks Limited, to form Stefanutti Stocks. A strong team of people, long-standing relationships with clients and commitment to service excellence are the components that drive the group’s success. The spectrum of construction work within the Building Division includes industrial and petrochemical plants, cooling towers for power stations, institutional buildings including hospitals, top class hotels, all levels of residential developments, factories and airports. Civils and Roads projects include mining infrastructure, dams, roads, bridges, water and effluent treatment plants, as well as township infrastructure and piling and geotechnical services, plus golf courses and municipal services. The client base covers governments, parastatals, local authorities, corporategroups, financial institutions and property developers.

These clients are based in Swaziland, Angola, Zambia, Botswana and Mozambique, as well as the Gulf region, among other areas. The S&B Group has a Grade 9 rating from the Construction Industry Development Board, providing unlimited tender capability. It is also ISO 9001:2000 accredited and has achieved numerous industry awards in recognition of innovation and the pursuit of excellence, including four Fulton awards. Extensive development and training programs are implemented in an effort to always raise performance and in the belief that skill, knowledge, experience and discipline are essential to sustainable growth. In recent years, over 40% of training and development expenditure has been allocated to health and safety and the safe operating of equipment.

The group is committed to compliance with all safety, health and environmental legislation that applies in the countries where it operates. Such legislation is regularly reviewed with new requirements addressed as necessary, including intensive training to ensure that employees are fully aware of their SHE (Safety, Health and Environmental) obligations. In the knowledge that the quality of deliveryis proportional to staff well-being and job satisfaction, an Investor in People culture has been established. This provides the framework for personal growth and the development of teams. The talented and technically competent S&B workforce is guided by highly experienced and professional management and supervisory teams.

SERVING THE INDUSTRY
Swaziland’s construction industry is backed by qualified professionals, including quantity surveyors, architects and engineers as well as by a diversity of manufacturers and suppliers. Although some materials, such as glass, ceramic tiles and metal frames are imported, most commodities readily available and many are produced locally. These include building blocks, clay bricks, pavers, roof trusses and tiles, plumbers’ brassware and paint, as well as construction sheeting and fencing materials. Stone crush and sand are obtained from the local quarries and rivers, and cement is also manufactured in the country.