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Contractors demand upfront payments as infrastructure funding comes under fire

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The Construction Industry Council, CIC, Stakeholder Forum 2026 has called for the strengthening of infrastructure financing models, increased local participation and the integration of climate resilience into national development planning.
Discussions reflected a growing consensus on the need to address financing constraints, improve project delivery and ensure infrastructure investments are sustainable and inclusive.

Senator Scelo Dlamini proposed that government consider introducing an upfront payment system for contractors. He suggested that 30% of project costs be advanced at the commencement of works. Dlamini said the model is widely used in several developed economies and would ease cash flow constraints faced by contractors in Eswatini.


According to Dlamini, delayed payments place contractors under financial strain, slow down project delivery and increase the risk of unfinished or stalled infrastructure developments. He stated that an advance payment structure would improve efficiency and strengthen contractor sustainability within the sector. He mentioned that many contractors in Eswatini rely heavily on borrowing to mobilise for projects, which increases operational costs.
Contractor John Horton proposed that future CIC forums broaden participation to include financiers such as banks, other funding institutions and the Eswatini Revenue Services. Horton said the direct involvement of financial institutions in industry dialogue would help address challenges related to project funding and coordination. He argued that collaborative engagement between contractors and financiers could improve project delivery outcomes across the country.

Senator Lizzie Nkosi raised issues of inclusive planning and sustainability. She questioned the extent to which the CIC is engaging traditional leadership structures in rural communities to support grassroots infrastructure development. Nkosi said meaningful community involvement is essential to ensure that infrastructure projects reflect local needs and strengthen development at household and community level.
She also raised concern on whether climate change considerations and environmental sustainability have been adequately incorporated into infrastructure planning frameworks. Nkosi warned that without proper climate resilience measures, infrastructure investments remain vulnerable to floods, droughts and extreme weather patterns.
She emphasized the need for long-term planning that addresses current infrastructure gaps and anticipates future environmental challenges affecting emaSwati.

Furthermore, Senator Stukie Motsa focused on skills development and local participation in infrastructure projects. She questioned whether systems are in place to ensure that individuals with relevant technical expertise are prioritised in employment and contracting opportunities within CIC-related projects.
Motsa further emphasized the importance of strengthening local participation. She asked whether mechanisms exist to ensure that local professionals and contractors are considered first before external service providers are engaged. Her remarks reflected ongoing national discussions on localisation, skills development and building a competitive domestic construction industry to drive Eswatini’s infrastructure agenda.

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The Construction Industry Council hailed the Government of Eswatini for an increased budget allocation for infrastructure development at the Ministry of Public Works. CIC Board Chairman Sandile Makhubu said budget allocations for capital projects in different ministries had been declining over the last ten years. Following engagements with different government departments, Makhubu said the results are now evident. “This year the budget allocated for capital projects at the Department of Public Works increased,” he said. Makhubu stated that the increased allocation is expected to stimulate industry activity and strengthen public infrastructure asset management.
The forum provided a platform for stakeholders to identify challenges and propose interventions aimed at improving infrastructure delivery in Eswatini.

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