By Morgan Chomba,
The National Association of Medium and Small Scale Contractors has expressed concern over what it describes as government’s preferential payment of foreign contractors, a situation it says has left many local firms facing serious financial challenges.
Speaking to journalists in Lusaka, Association President Edgar Siakachoma said it is disappointing that many local contractors are still owed outstanding payments, while foreign contractors continue to be paid on time.
Mr. Siakachoma noted that the practice has negatively affected the country’s economic growth, explaining that foreign contractors often repatriate their earnings rather than reinvesting them in the local economy, thereby depriving Zambia of much-needed capital.
He further stated that the government’s failure to adequately empower local contractors has weakened their competitiveness against foreign firms, largely due to limited access to machinery and financial resources.
The Association has since called on government to adopt policies that prioritize and strengthen local contractors in order to promote sustainable economic growth.
