Gross domestic product (GDP) figures mean nothing to the average businessman who is living ‘hand-to-mouth’, trapped by debt and struggling to keep staff employed.
This financial stress is captured by the Central Bank of Eswatini (CBE) data, which confirms that credit extended to the private sector and small firms, is falling sharply.
Eswatini Contractors Association (ECA) said the economic growth is not translating to the local construction sector, with domestic contractors systematically excluded from major infrastructure works.
The ECA said while donor-funded and nationally financed projects continue to expand, the exclusion of Swati contractors from meaningful participation undermines national development goals, equity and economic empowerment. A recent African Union (AU) study found only 16 per cent of large projects involve domestic private contractors.
Critical infrastructure growth in the country has largely relied on foreign contractors, with domestic contractors effectively sidelined by procurement rules and practices.
Major donor-funded works, including the MR14/MR21 roads, the Mkhondvo-Ngwavuma water project and the Central Bank expansion, have exposed systemic procurement constraints.
Domestic contractors cite rigid bond and security requirements as a major constraint. The ECA is a representative trade body dedicated to advancing, protecting and promoting the interests of contractors across Eswatini. The ECA actively advocates for the recognition and participation of local contractors as prime implementers on national projects.
This concern was formally articulated in a press statement issued on September 7, 2025, which underscored the systemic exclusion of Swati contractors from donor-funded construction projects.
Mongezi Mnyani emphasised the imperative for local benefit in a recent interview and said: “As Africans, we can’t treat investors like they are doing us a favour. They invest because they will get a return on their investment in due course. Ensuring maximum benefit for local economies, communities must be structured into investment agreements”.
The struggle is embodied by businessman Mxolisi Mabuza of Waxola Investments, who said the sectors he trades in (freight, public transport, health and hospitality) are struggling and he is hardly breaking even.
The slump in business started at the height of COVID-19 and has not recovered.
“We are living hand-to-mouth, where any monthly sales satisfy salaries, cost overheads and debts from suppliers. Whenever a payment is received, it is transferred to pay off a debt and as such, our business expansion is limited at the moment,” he said.
The financial pain felt by entrepreneurs like Mabuza comes despite the Central Statistical Office (CSO) reporting that the country’s economic growth hit 3.4 per cent in the second quarter of this financial year.
The quarterly GDP report shows this seasonally adjusted real GDP reflects a notable improvement from the 0.6 per cent growth recorded in the second quarter of 2024. According to the CSO, the rebound was largely supported by strong performances in the secondary and tertiary sectors, which outweighed the slowdown in primary industries such as agriculture, forestry and mining.
The secondary sector, which includes manufacturing, electricity, water and construction, expanded by 6.7 per cent year-on-year. Growth was driven mainly by manufacturing (6.1 per cent), electricity supply (6.6 per cent), water supply (4.1 per cent) and a robust 12 per cent rise in construction.
The tertiary sector, which remains the backbone of the economy, contributing over half (52.6 per cent) of total output, grew by 3.7 per cent.
Key drivers included information and communication (17.5 per cent), professional services (15.1 per cent), financial and insurance activities (4.1 per cent), transport (3.1 per cent) and wholesale and retail trade (2 per cent).
A number of sectors claimed they could not feel the growth, reporting that their businesses were experiencing a declining period over several years, despite the World Economic Outlook also projecting the country’s growth at 4.3 per cent.
