According to the Construction Industry Council (CIC), foreign contractors handled projects worth E6.13 billion during the year, compared with just E16.9 million in 2024/25.
The sharp increase came as the total value of registered construction projects rose from E2.83 billion to E11.24 billion.
The CIC said, however, that the growth was driven mainly by a few large, capital-intensive projects rather than broad growth across the industry.
It said foreign contractors were increasingly involved in high-value and technically complex projects because local firms lacked the capacity to compete in these areas.
‘Local firms are unable to fully participate in high-value segments,’ the CIC said, warning that the gap could widen as construction becomes more technically demanding.
The council said the concentration of growth in large projects was a structural challenge because the rise in project value was not matched by a similar increase in the number of projects.
This limited opportunities for smaller contractors and left some firms underutilised.
The construction boom was also heavily dependent on government investment. Government and parastatal projects accounted for 80.2 per cent of registered project value in 2025/26, up from 50.7 percent the previous year.
Parastatal projects alone accounted for 59.8 per cent, while government projects contributed 20.4 per cent.
The CIC said this showed that construction growth was increasingly being driven by State-funded infrastructure, with a smaller relative contribution from the private sector.
The CIC said the short-term outlook remained positive, supported by major energy, water and transport projects.
However, it warned that growth could slow once existing mega-projects are completed unless they are replaced by new projects.
Source: Times of Eswatini (Eswatini)
