Ezulwini- Senator Sicelo Dlamini has said the government of Eswatini should consider paying contractors up to 30 percent of the value of infrastructure contracts upfront to ease cash flow constraints, reduce borrowing costs and improve project delivery.
Speaking during discussions at the Construction Industry Council (CIC) Stakeholder Forum 2026, Dlamini said the current payment model places significant financial pressure on contractors, forcing many to rely on expensive loans to finance projects before receiving payment.
He said an upfront payment mechanism would enable contractors to mobilise resources more efficiently and execute projects without unnecessary financial strain.
“In developed countries, contractors receive advance payments. Government should consider paying about 30 percent upfront so contractors are not forced to finance projects through debt,” he said.
Dlamini argued that improving contractors’ cash flow would strengthen the industry’s capacity to deliver infrastructure projects on time while reducing financing costs that ultimately affect project implementation.
He also called on government to review the awarding of major infrastructure contracts, proposing that large projects be subdivided into smaller packages to allow greater participation by emerging local contractors.
According to the legislator, splitting large contracts would broaden opportunities for local firms, help build capacity within the domestic construction sector and contribute to the growth of small and medium-sized contractors.
Supporting the discussion, contractor John Horton urged the CIC to broaden participation at future stakeholder forums by inviting financial institutions, including commercial banks, the Eswatini National Provident Fund (ENPF) and the Eswatini Revenue Service (ERS).
Horton said bringing financiers and other key institutions into industry discussions would help address persistent financing challenges facing contractors and facilitate practical solutions to support the sector’s growth.
The proposals were made during the annual CIC Stakeholder Forum, where government, contractors, consultants and other industry players discussed measures to strengthen Eswatini’s construction industry and improve its contribution to national development.
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