The construction sector declined by 3.4% in 2007/8 compared with growth of 3.5% the previous year. The sector accounted for 3.5% of GDP. Government allocated E451 to the Lower Usuthu dam project and supporting infrastructure with E220 set aside for the Ngwenya/Mbabane highway. It is expected that construction will continue to decline in the short term and Government’s investment in infrastructure will be the cornerstone of this industry for the immediate future. HOUSING
The Urban Development Project
This project entailed funding by the World Bank and has been a major influence in resolving the housing shortage. It was implemented under the Ministry of Housing and Urban Development and involved a total of E400 million over three phases. The UDP entailed improving urban infrastructure and providing reasonable, low-cost housing for purchase, as well as upgrading existing homes. Some 4,000 plots were involved with the loans repayable by 2014. The scheme is benefiting about 100,000 people living along the Mbabane/Manzini corridor.
Other 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. A number of private housing developments are in hand and the National Housing Board provides accommodation at affordable rentals. Shopping Centre -
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 Co-operatives building and Corporate Place in Mbabane, on which work was curtailed for various reasons, continued to be an eyesore in the city. However, indications are that work may resume on the latter project.
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 Projects
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 participants and visitors to the 2010 FIFA World Cup.
Factory Shells
A number of first grade, custom-built factory shells with a combined floor area of 248,563 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 once reached a peak of 30,000 in the past), mostly women, with total earnings of 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.
Helemisi Development
The historic town of Manzini is also receiving a facelift. The Helimisi site is now home to the Mavuso Exhibition and Trade Centre which has been operational since 2004. It has hosted a number of key national events, such as the annual International Trade Fair and the National Agricultural Summit held in July 2007. A sports centre with a football stadium and facilities for indoor activities, such as volleyball, basketball, netball, squash and swimming is under construction. This facility will be complete and operational by the first quarter of 2009. 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 Matsapha International Airport remains the country’s main air terminal pending the completion of the Sikhupe development. Developments at Matsapha include new security fencing around the boundary, the refurbishment of the terminal building and its fittings, rehabilitation of the runway to accommodate large jets, a new taxiway and airfield landing lights, and new flood lights. All safety and security equipment has been rehabilitated and the meteorological equipment updated to comply with international standards. Construction continued on the new and bigger international airport at Sikhupe in north-east Swaziland, as already noted.
Government Buildings
Phase I (blocks 1 to 6) of construction of the interministerial office block in Mbabane began in March 2000 and was completed in 2004/5. A number of ministries and departments are presently accommodated there. Phase II (blocks 7 and 8) is under construction and due for completion in the 2008/9 financial year to accommodate the Ministry of Tourism and Environment and the Ministry of Foreign Affairs. Preliminary designs for the interministerial offices at Nhlangano are complete and include plans for future expansion should the need arise and if funding is available. Some rehabilitation work has been undertaken at specific sites under a systematic program and work of this nature is taking place in phases at Mbabane and Mazini. The rehabilitation of the Swaziland College of Technology, SIMPA, the Mbabane and Manzini Magistrates Courts and the Deeds Office were almost complete at the end of 2008. A priority list of other offices has been made and submitted to the relevant Government agencies for consideration. Although the upgrading of Government offices continues to be a priority, the program is faced with the challenge of under-funding due to the extent of the need.
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 standards and the traffic levels. In addition to the p r o c l a i m e d network is a further 1,500 km of feeder roads, bringing the total network to about 4,658 km. The feeder roads are unpaved and most are in very poor condition. R e c e n t assessment show that major rehabilitation has in order to bring them into maintainable standards at an estimated cost of E45,000/ km at 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 and responsibility for maintaining the feeder roads was transferred to the Ministry in 2000. Previously, they were not gazetted and did not have a government department tasked with their maintenance. Since 1993, Government has invested substantially in the construction, upgrading and maintenance of the national road network, which today is among the best in Africa. Work on the Ngwenya-Nkoyoyo section of the Ngwenwa-Mbabane dual carriageway was completed mid-2003 while the construction of the second section began in 2004. This was delayed during the year and completion is now expected in 2009. The E510 million project links to the Mbabane- Manzini highway and once complete, will give Swaziland an arterial highway of international standard linking the country’s two major cities. The route begins at the main border with South Africa and ensures the free flow of traffic via Matsapha Industrial Site, the inland container depot and the international airport. The new Siteki-Mhlumeni road connects with Mozambique and Maputo, the main port for Swaziland’s imports and exports. This route also serves the Lubombo Spaatial Development Initiative area. Another major road construction project involves funding of E380 million from the Japan Bank for International Cooperation to develop the Northern Main Road which comprises three routes complementing the Maguga Dam area and which forms an important link with South Africa and Mozambique along the Maputo Development Corridor. Tollgates, to be managed by the private sector, are planned at the Ngwenya border post and along the Mbabane-Manzini highway near the Ezulwini turnoff. These are part of a cost recovery effort for the maintenance of the roads. Government is also involved in various rural community access projects which are financed by the EU Microprojects fund, while some rural feeder roads are funded by Government under the Ministry of Public Works and Transport.
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. Meanwhile, work to upgrade the Manzini bypass road, which serves the new International Trade Fair, sports centre and stadium, has been completed to provide a route of very high standard.
DAMS
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 early 2002. On the Swaziland side, the Maguga dam alone involved an E350 million contract, which was awarded to various companies and the nearby town of Piggs Peak has enjoyed spin-off benefits through related projects such as housing developments, with many jobs created. It is possible that another dam will be built nearby to supplement Maguga. 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, including the European Union.
EU MICRO PROJECTS
The European Union continues to provide financial assistance to rural communities who are expected to contribute input in terms of labour. They mainly involve water supply, electrification, access roads and bridges and educational undertakings
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, multi-level projects, roads, dams and infrastructure. The larger operations have substantial investments in the country, including sophisticated plant and machinery as well as advanced infrastructure.
Inyatsi Construction
Inyatsi, a wholly Swazi-owned construction company, is taking the lead for growth in southern Africa. Not only is it a leading business in Swaziland, it is also successfully expanding across the borders with operations in Zambia, South Africa, Mozambique and Swaziland.
With the Head Office based in Swaziland, all revenues and profits flow back to the country: over half the revenue of the last financial year was earned outside Swaziland. Inyatsi came from small beginnings and was foreign-owned until 2004 when local shareholders acquired the company. Since then it has expanded substantially. With a world class team of professionals, Inyatsi is successfully competing with the best and will achieve revenues in excess of E400 million for the current financial year. A growth strategy is in place to achieve revenue in excess of E600 million by 2011. Inyatsi, which owns a comprehensive range of earthmoving and construction plant, specialises in the construction of new roads and the rehabilitation and upgrading of existing roads. It also has experience in bridge construction, pipe-laying and stormwater drainage, township infrastructure, water reticulation and the construction of dams and reservoirs. Inyatsi has carved a niche in the road construction industry by performing excellent quality work in Swaziland since its inception in 1982 and today has the capacity to undertake all road works anywhere on the African continent. It has the necessary resources and skilled manpower readily available, giving it an edge over international competitors. From small beginnings to a true multinational, Inyatsi Construction is a force to be reckoned with in Africa south of the Sahara. With contracts in South Africa, Zambia, Swaziland and Mozambique, and expanding into the DRC, Namibia and Tanzania, Inyatsi is a serious contender in its category.
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.