Construction

In the health sector, Minister Rijkenberg continued, significant investment has been made during the COVID-19 response by government and development partners. He namechecked these major initiatives as including:

•             Building a specialised COVID-19 ward at Lubombo Referral Hospital

•             Repurposing the National TB Hospital in Manzini

•             Constructing oxygen plants at the Luke Commission and Lubombo Hospital

Furthermore:

•             Phase 1 construction has been completed at Mbabane Government Hospital, and Phase 2 will begin this new financial year

•             The repurposed Manzini Hospital with a focus for treatment of NCDs is near completion

•             In an effort to improve access to health services countrywide, the construction of six new clinics has begun

Eswatini recently experienced a tropical cyclone along with other bouts of unseasonal heavy downpours, resulting in damage across the country to roads, bridges and houses worth many millions of Emalangeni. The Finance Minister said that government swiftly mobilised resources to reconstruct more than 270 houses and 68 bridges. Echoing the words of Prime Minister Cleopas Sipho Dlamini at a news conference after Cabinet’s pre fiscal-year retreat, Rijkenberg gave an assurance that “attention will be given” to finding a lasting solution to the shortcomings of the country’s road network.

Rijkenberg said that government continues to improve and expand infrastructure provisions in schools and tertiary institutions. Most recently, 169 classrooms and 49 staff houses were constructed, and 99 structures were rehabilitated. At the tertiary level, the rehabilitation of Emlalatini, VOCTIM and ECOT is ongoing. Government also undertook the construction of hand-washing facilities in many primary and secondary schools.

The Minister allocated E26-million to what he called the “very exciting” Mkhondvo/Ngwavuma Water Augmentation Project which is due for completion in 2027 and comprises the construction of large dams, canals and a hydroelectric scheme.

LANDMARK DEVELOPMENT

Prime Minister Cleopas Sipho Dlamini at the abovementioned Cabinet retreat media briefing announced that during the coming 12 months, attention will be given to the completion of key capital projects including the construction of the International Convention Centre and adjoining Five-Star Hotel (ICCFISH). Situated in the bespoke residential area and much-visited tourist destination, Ezulwini (The Valley of Heaven), ICCFISH was described by His Majesty King Mswati III as contributing to the country’s status as one of the most conducive locations for investment in Sub-Saharan Africa.

The ICC component will be a six-storey building (plus basement) covering more than 40 000 sq m, with facilities comprising:

•             Auditorium/Theatre holding up to 1 800 patrons

•             Several Conference/Meeting Rooms

•             Exhibition Hall

•             Chamber with VVIP Reception/Holding Rooms

•             Multipurpose Banquet Hall hosting up to 1 500 guests

•             Multipurpose Rooms

•             Five-Star Restaurant capable of seating more than 340 guests

The FISH will also cover more than 40 000 sq m and be a six-storey building (plus basement). Accommodation will comprise:

•             Approximately 300 rooms, of these:

                – 260 Standard Rooms (~50 sq m), with the remainder made up of

                – Junior Suites (~100 sq m)

                – Executive Suites (~200 sq m)

                – Presidential Suites (~300 sq m)

Facilities are to comprise:

•             Five-Star Restaurant

•             Multipurpose Rooms

•             Gymnasium (two-level)

The ICC and FISH will be linked by a Skywalk to enable flow between the two facilities. Its features will include:

•             Coffee Shop with panoramic view of the Mdzimba Mountains

•             Several high-end shops along its length

•             Elevators

Energy-wise

The Finance Minister declared in his 2022/23 Budget Speech that the Petroleum Act of 2020 is now operational and establishes the Eswatini National Petroleum Company (ENPC), which is responsible for the planned construction and operation of the long-awaited Strategic Fuel Reserve (SFR) facility at Phuzumoya in the Lubombo region. He then announced an allocation of E529-million to the Ministry of Natural Resources to carry out its programmes. His Majesty King Mswati III officially launched the SFR initiative on 18 October 2013 by means of a sod-cutting ceremony: a litany of challenges has subsequently prevented the E900-million undertaking from getting off the ground, and it was most recently said to be “at the resource-mobilisation stage”.

The SFR has thus far been heralded as a 90-million-litres assurance of national fuel supply for up to 90 days in the event that the country experiences shortages brought about by interrupted deliveries: the latter occur, albeit infrequently, when coastal storms affect harbour operations in South Africa and/or Mozambique, refineries/depots in those countries conduct emergency maintenance/repairs, or industrial action impacts upon cross-border transport. The SFR was originally planned to comprise:

• Gasoline storage tanks

• Diesel storage tanks

• Piping systems

• Storage-dyke systems

• Oil/water separator systems

• Backup electricity-generation systems

• Railway-wagons loading/offloading system

• Loading-arms for loading trucks

• Limited truck-offloading systems

• Road network

• Concrete, rock and asphalt paving

• Administration block

• Laboratory

• Water-treatment/sewerage system

• Potable-water utilities

According to a Ministry of Natural Resources and Energy status report on the implementation of what is regarded as a very important national project, the preliminary works of Phase 1 undertaken to date were:

•             A construction work-plan has been prepared by the primary contractor, and activities are undertaken in line therewith

•             Designs for the fuel storage facility have been completed

•             The contractor has cleared the undergrowth and stripped the topsoil

•             The Ministry has zoned the site, coordinates for the project have been defined, and a coordinate diagram has been produced

•             Eswatini Electricity Company, at the Ministry’s request, has begun constructing a transformer to service the facility

•             The Ministry of Public Works and Transport has completed preliminary designs for an access road to the site, estimated the cost of constructing the access road and is working on finalising the detailed designs

•             Eswatini Railways has been engaged to supply bulk water to the facility and is laying onsite pipes

Pastoral Surrounds

Millions of Emalangeni are being pumped into an initiative that launched luxurious apartment-living in the bucolic small town of Malkerns in the heart of Eswatini’s pineapple-growing country. The development – Malkerns Square – is sited on 42 ha between the Mbabane/ Ezulwini and Matsapha/Manzini corridors. The first two phases of the residential estate component are reportedly complete, resulting in 147 units comprising 1, 2 and 3-bedroom apartments, along with 8 double-storey units. According to the developers, they plan to build about 1 100 apartments by 2030. The construction of a 2 200 sqm shopping centre is complete, with a 5 000 sqm addition planned for the future.

Malkerns Square’s prospectus described the undertaking thus: “It provides quality, modern lifestyle-living between two major economic nodes, with great infrastructure access, transport and utilities. On offer is the opportunity to be part of a lifestyle-village estate, where villages are expressed with modern architecture and within a master-planned precinct of distinction. The villages are designed to have unique elements, including architecture, use of colour and landscaping that together enable each close community to express itself individually, whilst still being part of a larger community where the benefits of being in a modern master-planned precinct apply: these include modern road networks, parks, landscaping and infrastructure services. The master-planning also provides convenient access to shops, easy access to units, green corridors, pedestrian-friendly movement, and a safe haven for families. There are a number of accommodation offerings, as well as future gated communities, and plot-and-plan opportunities.

“Malkerns Square is centred around beautifully-designed buildings and inspiring, timeless architecture: the first village celebrates the modernism of Bauhaus. High-quality construction and great finishes hallmark every apartment. The eco-estate design includes running and walking paths, village parks, green community spaces, sports fields and courts, barbecue areas and more, with an emphasis on community, family, youth and retirement. The estate is designed with sustainable energy solutions in mind, including solar power, along with environmentally sustainable water management based on recycling and efficiency.”

SECTOR OVERSEER

All companies and persons involved in construction in Eswatini are required by law to be registered with the kingdom’s Construction Industry Council (CIC), the mission statement of which reads: “To regulate, develop and promote the construction industry for the benefit of all stakeholders through transformation for sustainable growth, monitoring industry performance, research and empowerment, thus improving the socio-economic status of the country”.

The CIC’s powers:

•             Direct any contractor or person providing services in the construction industry to deliver its services in a manner that ensures compliance with the Act

•             Require any person or contractor to provide necessary records and information that will enable the Council to monitor the performance of the contractor

•             Consider any matter affecting the construction industry and make necessary recommendations to the Minister

•             Obtain information related to the industry from any person engaged in the construction industry in Eswatini

•             Obtain and collate information concerning any existing or proposed projects and where necessary, advise persons engaged in the construction industry on the project

•             To work together with the bodies in Eswatini and elsewhere on matters affecting the construction industry

•             To recommend the approval of institutions in Eswatini and outside for the training of persons engaged in the construction industry

•             To employ professional, technical and administrative staff as it may consider requisite and lay down conditions of services for the employees

•             Pay any person in its employ such salary, wages or remuneration as it may consider adequate

•             Generally, to do such things as the Council may consider necessary or expedient for the performance of its functions under the Act

The CIC’s functions:

•             Promote and develop the construction industry in Eswatini, give priority to Swati firms and companies

•             Facilitate Swati firms and companies to have access to resources for the development of their operations

•             Assess the performance of contractors in the execution of contracts and thus provide a performance record for contractors

•             Regulate the behaviour and promote minimum standards and best practice for contractors

•             Provide data on the size and distribution of contractors operating within the industry

•             Promote research, development and the use of competitive local materials and appropriate construction material

•             Promote and facilitate the construction of affordable low-cost housing in consultation with the Ministry of Housing

•             Set and promote safety standards in the construction industry

•             Prescribe the categories for the registration of persons engaged in the construction industry

•             Monitor and evaluate, from time to time, the capacity and progress of persons engaged in the construction industry

•             Regulate activities in the construction industry through the appropriate institutions, Boards and other authorities, as the case may be

•             Recommend to the Minister, the conditions under which a foreign firm or company may be registered and permitted to operate in Eswatini

New Alliance

The CIC and EswatiniBank have in place a Memorandum of Understanding (MoU) aimed at the two entities jointly promoting and developing the sector. Making his remarks during the signing event, EswatiniBank Managing Director (MD), Zakhele Lukhele, said that the alliance will see the institution provide working capital and other banking services to contractors. He made a commitment to the CIC that in the event of being approached by contractors, EswatiniBank will educate them and furthermore provide the required services as identified. Continuing, the MD gave an assurance that his staff will also explain to CIC stakeholders exactly what is expected of them when approaching the Bank. He concluded by declaring that EswatiniBank looks forward to its formalised relationship with the CIC, and is optimistic that it will play a significant role in growing the construction industry and the country’s economy.

CIC Chief Executive Officer (CEO), Nhlanhla Dlamini, expressed his gratitude to the Bank for agreeing to the relationship which he said will go a long way towards developing the industry. He spoke of how, when the CIC was promulgated, EswatiniBank was the only financial institution in the country “willing to give us an ear and embrace our business model”. This led the CIC to believe, he said, that the structured partnership will play a significant role in ensuring that the Council meets its mandate. The CEO opined that the signing of the MoU will provide an opportunity for industry players to have preferential access to financing options, notwithstanding the need for the Bank to consider the risk factors involved.

Dlamini also declared that the MoU could not have come at a better time, especially in light of the coronavirus pandemic, as the Bank will be able to provide financial advice and contributions to the sector. The alliance will impart to CIC members invaluable lessons on how to run their businesses in terms of financial acumen which, the CEO conceded, has been a challenge within the industry, in particular among newer and less experienced entrants. He thus expressed confidence that the collaboration will enhance the kingdom’s construction landscape, while the implementation of the MoU will simultaneously serve to promote the two organizations’ strategic goals. The CIC CEO concluded his remarks by emphasising the importance of the fact that the objectives and values of the MoU with EswatiniBank are aligned to His Majesty’s Vision 2022 and beyond, for sustainable economic development, social justice and political stability.

CONSTRUCTION

Investment sentiment in Eswatini remains strong. The assertion was made by Finance Minister Neal Rijkenberg, who said in his 2022/23 Budget Speech that government was pleased to note significant reinvestment initiatives by a number of large private companies. Of these positive indicators he highlighted the construction in Manzini of a new mall worth over E2-billion which is expected to commence during the financial year just begun, and similarly a commercial development near the new interchange, this with an estimated price-tag exceeding E3-billion.

Moving on to State-funded initiatives, the Minister began by pointing out that government is constructing factory shells across the country, and that during 2022/23 the initiative will entail the completion of the Gamula factory shell, Mantambe factory shell, Hlathikhulu factory shell and the Johnson Workwear site in the Jabulani area near Nhlangano. He said that the last-mentioned, huge factory will be finished at the same time as the Sicunusa road along which it is located. Altogether, Rijkenberg said, these factory shells are expected to employ over 6 000 people. The Minister then spoke of the recently completed Manzini Trade Hub: he said that government had observed its full utilisation, for which all informal traders should be thanked.

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