The Private Sector Development Association(PSDA) has accused Commercial Banks in Zambia of favouring foreign contractors at the expense of the Local contractors when lending money.
PSDA Chairperson YUSUF DODIA says Foreign Contractors are finding it easy to borrow money from Commercial Banks to undertake government projects yet Local contractors are denied access to financing by the same Commercial Banks.
Mr. DODIA has appealed to the government to come to the aid of Local contractors by guaranteeing loans they obtain from banks to carry out government projects.
He said this in Lusaka today when he appeared before the parliamentary committee on Communication, Transport, Works and Supply chaired by MOOMBA Member of Parliament, VITALIS MOOYA.
Mr. DODIA says the future of Zambia lies in the growth of the local private sector which needs support from government.
He added that the construction sector offers a great leap forward for Zambian contractors to undertake larger portion of construction works thereby creating wealth and employment.
Meanwhile, the Small and Medium Contractors Association says government’s 20 percent subcontracting policy has not benefitted the targeted local contractors.
Association Secretary General DANNY SIMUMBA says the targeted local contractors have not benefited from the policies despite government’s move to put in place the 20 percent subcontracting policy in place.
Mr SIMUMBA has since called on government, technocrats and stakeholders to relook at the policies saying that it has benefited foreign contractors unlike the targeted locals.
He says the implementation of the policy to give 20 percent subcontract local contractors by foreign contractors has not been done well.
M And Small and Medium Scale Contractors Association Chairperson MUTALE MPEPO has called for the revision of the policy.
MR. MPEPO says the 20 percent is too minimal to sustain the local contractors.