Local contractors deserve support – Prof Saasa

THE construction sector is mainly dominated by foreign contractors because of the technical sophistication that is required to carry out most projects says, veteran economist Oliver Saasa.

Speaking during a public discussion programme in Lusaka on Thursday, Prof Saasa said according to findings of research he carried out, there was need for the government to reserve certain projects exclusively for small contractors as they lacked the sophistication to carry out some of the projects.

He said the current government was clearly interested at policy, and regulation that supported local contractors.

Prof Saasa however said that unlike public perception, the 20 percent sub contraction policy to Zambian contractors was not law but merely a policy.

“There is a belief that the 20 percent subcontracting policy is law which is very wrong, we need to make it law to protect local contractors,” he said.

Prof Saasa said there was need for government to engage in real public private partnerships, as such partnerships were integral in infrastructure development.

He said Government should ensure that policies should not scare away investors.

Prof Saasa said Government should make the country attractive to private public partnerships. And president for National Association for Small-scale and Medium Contractors Edward Mpepo said local contractors should be given priority in payments.

He said local contractors were paying 40 percent on interest rates in banks while foreign contractors who were taking money outside the country were enjoying 2 percent interest rates from banks in their countries.

Eng. Mpepo said the 20 percent policy on sub-contracting had failed.

He however applauded President Lungu for supporting the policy and suggesting that the 20 percent threshold was in fact low and needed to be increased.

“The problem is with you the technocrats otherwise we salute President Lungu for his support to us the small contractors,” Eng. Mpepo said.