THE Private Sector Development Association (PSDA) has called on the Government to create thresholds for Zambian and foreign contractors as a way of building capacity for local companies.
PSDA president Yusuf Dodia said in an interview that the Zambian contractors needed to get a push from the Government through letting smaller tenders be left strictly for local contractors while leaving the bigger ones open for all.
Mr Dodia said one of the challenges being faced by most Zambian contractors was the inability to handle large-scale contracts which subsequently ended up in the hands of foreign companies.
He added that Zambian contractors would have to start growing but that challenge would only be overcome if Government put up deliberate policies intended at building capacity.
“Local companies are definitely disadvantaged in terms of getting real big Government contracts because of capacity challenges. This is where Government needs to come up with thresholds that would help Zambian companies get contracts.
“A threshold of K10 billion should not be open tender but for local contractors and anything above that should be open, this will see Zambia build capacity and create more jobs and wealth for Zambians,” he said.
He said by so doing, Government would be creating a good business environment which was supporting the growth of local enterprises.
Mr Dodia said the threshold would help spur local business and the money to be made by local contractors would be re-invested within the country and thereby help other sectors of the economy to grow.
Asked on calls by the Zambia Chamber for Commerce and Industry that local companies should also get tax holidays that foreign investors enjoy, Mr Dodia said what was more important was for the Zambian companies to be given preference as a boost.
He said Government through the Zambia Development Agency should indentify companies with vast potential in various sectors and help them become sustainable through tax holidays.
[Times of Zambia]
The condition for operations in Tax free zones should be such that companies in these zones do not qualify to bid for public tenders. Only those paying taxes must be eligible to participate in public tenders. This will help to even up competition and promote local companies
good morning
While you’re at it, would you also educate the Zambian contractors on the importance of schedule, efficiency and quality? Many Zambian contractors can not be taken seriously any more. They will take the money, lay out the foundation and disappear. If they decide to stay on the job, they would do shoddy work and take ages to complete.
Zambian contractors are not serious. After working with them or supervising them one can confirm what I am saying. Very few can be trusted. You give them tax holidays they will end up using the money on other personal issues than building up the capacity of their companies. Moreover, even the quality of works leaves a lot to be desired and above all health and safety. A lot is needed for our our contractors to develop maybe some training of some kind.
Point on.That is really the issue that needs to be looked into seriously.In Zambia a foreigner can walk in and open any business they want,from selling talk time to selling to jilijil.This should be stopped.Lets categorise certain businesses that should be exclusive for citizens only.Just for example the following:passenger transport,grocery trading,bakerys,hairsaloons,bottlestores,filling stations etc the list is endless.You dont need those foreigners to go into such busineeses,you reserve if for your local population.By so doing as a government you create employment ie citizen empowerment and at the same time you avoid your communities to be invaded by fake investors.This is what the local govt and your MPs should embark on to create an environment that is conducive for citizen empower
Good idea but Zambian contractors should also be required to provide good quality work that matches what foreign contractors achieve. This would be good value for money. Otherwise it would be a waste of tax payers’ money to give them contracts.
Dodi a I agree with you on this one.
i would rather a certain threshold is created for a partnership between a zambian company and a foreign then after that an open tender is done. Strictly speaking Zambians alone are not ready for some jobs and at the same time leaving them completely open to foreign companies will mean Zambian companies will never build capacity
this is only reasonable a request but zambian businesses need to up their game. no free lunch
I am 100% in agreement with the above article. We need every sinew of employment generation to provide jobs to the local people. Other developing countries should do the same, if they not as yet aware of this important economic lesson!