
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]