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Monday, September 28, 2020

Kwacha fall due to profits in construction industry – Col. Kaunda

Economy Kwacha fall due to profits in construction industry – Col. Kaunda

kwacha

Transport, Works, Supply and Communications Deputy Minister Colonel Panji Kaunda says the kwacha has continue to depreciate partly due to huge profits in the construction industry leaving the country.

Col. Kaunda says this development was as a result of most contractors in the construction industry being foreigners.

“Today the kwacha is struggling because most jobs worth billions of kwacha in the construction industry are awarded to foreigners and they also take the huge profits they make back to their home countries,” he said.

He warned that the trend would continue if government did not take deliberate steps to minimize the trend.

Colonel Panji said it was for this reason his ministry had come up with the Affirmative Action for Youth Empowerment in the Construction Sector Program to address the situation.

ZANIS reports that Col. Kaunda said this yesterday during an extra-ordinary District Development Coordinating Committee Meeting held at Livingstone City Council Chambers.

He further said there was no properly organized labour force in the country despite youths being trained as artisans, bricklayers, carpenters and power electricians among others.

“There is no properly organized labour force in this country. We train so many artisans, brick layers, carpenters, power electricians and hope they get jobs but available jobs have so many conditions attached which our youths don’t have and this disadvantages their job prospects,” he said.

The deputy minister described this situation as a social and skills problem which would be addressed by the effective implementation of the Affirmative Action for Youth Empowerment in the Construction Sector Program.

Earlier, the Deputy Minister paid a courtesy call on Livingstone District Commissioner, Omar Musanje.

Mr. Musanje expressed concerne over Ministry of Works and Supply officers who certified shoddy works by some contractors and appealed to Colonel Panji and the National Council for Construction to intervene as government was losing colossal sums of money due to sub-standard works.

20 COMMENTS

  1. If Zambian contractors could actually learn to deliver, we would not have to hire foreigners. The contractors are there but a lot of them have been a disappointment. So in the end we have no choice but to hire foreign contractors because they actually do the work.

    • Part of the problem is that trading companies have seen that there is money in construction and are branching out there. Check the ZPPA site and you will find many “Trading and Construction” companies!

  2. Foreign contractors in road construction are unavoidable. They ve the equipment, capital muscle & expertise. Most of them are chinese contractors bank rolled by their govts. Who create jobs of its nationals, starting from supply of equipment & experts. So they will always take their money back. Even Zambian contractors would buy equipment outside resulting in capital frieght. what govt needs to increase dollar inflows, not only by mines but also through hosting international events & visiting foreign heads of states. they always come with dollars to spend. lets work on the kwacha they impacts will be huge. All the savings will be eroded.

  3. Bo lungu you an *****, ninkompop, imbecile humanbeing who never crowed on earth. What has that to do with leachate falling, read before comment Mwangala ana ku kana kekekeke! Hence chikonko.

  4. we have no labour pffices are and officers to put employment structures in place ba panji naimwe,go to all the districts and see what i mean,zambia is congo in the making watch the space

  5. Panji Kaunda, your party said they were going to create jobs and wealth for the citizens. How come you’re now whingeing that those jobs worth billion of Kwacha are given to foreigners, along with profits? Who gave those jobs to foreigners??!! You’re insane!!!!

  6. Give contracts to qualified Zambian Engineers because they can be blacklisted by their association (EIZ) if they do shoddy works and run away with cash. Don’t give huge and sensitive contracts to political cadres. Zambian Engineers also should learn to combine efforts with fellow Engineers to form formidable companies instead of each one having a personal kantemba. For example each road construction company should have a Civil Engineer, a Geomatic Engineer and a Mechanical Engineer plus technicians from these same engineering fields as a minimum requirement. Otherwise even the financial institutions like Banks will not take you seriously.

  7. I ALWAYS SUSPECTED PANJI TO BE DULL. THIS CONFIRMS HE IS VERY DULL.
    THE KWACHA IS PLUMETTING BECAUSE OF VERY LOW CONFIDENCE IN THE PF GOVT’S INCOSISTENT POLICIES THAT HAVE LEFT INVESTORS WONDERING WHAT NEXT?
    SO THEY ARE SELLING KWACHA AND EXTERNALISING DOLLARS AND BRINGING IN VERY FEW DOLLARS.

    • What if he did a research and found that these foreign roads companies are actually externalising millions and millions of dollars to their countries (China)?

  8. Here is what Panji should have said: When a job is given to a local contractor it takes ages to complete coupled with the well known incidents of poor resource management owing to theft and insincere estimates as well as incomprehensible mixtures that render a structure dangerous upon completion. A foreign contractor, on the other hand sticks to a project plan, gets the work done in a fraction of the time it takes a local contractor, and delivers a product that stands the test of time. So, unless we can match these foreign contractors’ work ethics, we are doomed to see the Kwacha lower even further… No politics, just clean admission, sir Panji.

    • @ Kal, have you read the about what has happened on the Ndola-Kitwe road project and at Sino-Hydro project?

  9. Can we have a comment from economists or people entrusted with financial issues in the country than have this Soldier talk about issues he may not be competent in. I would have thought that that the PF would have people dealing with financial issues in the country and they are the ones to tell us about the depreciation of the Kwacha. Just wondering!!!

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