Maravi

NCC urges formalisation of construction industry

NCC urges formalisation of construction industry
Written by Florence Bupe
Wednesday, February 11, 2009 9:37:32 AM

THE National Council for Construction (NCC) has advised the government to institute policies that will formalise the country’s informal construction industry in order to derive higher economic contributions from the sector.

During a briefing last Friday, NCC executive director Dr Sylvester Mashamba said the informal construction industry could be made to contribute more meaningfully to the growth of the national economy through tax submission.

“Unless the Zambian government takes steps to formalise the highly informal construction industry, the much talked about multiplier effects, forward and backward linkages will not be achieved,” Dr Mashamba said. “The informal economy, and more so the informal construction which is now bigger than the formal sector, should be made to contribute to the national economy.”

Dr Mashamba said the government should also ensure that the provisions in both the NCC and the Citizens Economic Empowerment Acts were upheld in order to promote the local and citizen construction companies.

Dr Mashamba also expressed optimism that the decision by the government to lower international gateway fees would ultimately reduce the cost of doing business in the country, thereby making the economy more competitive.

“Government’s decision to remove customs duty on a number of specified construction equipment is another welcome development in this year’s budget to the industry, although its immediate impact is unlikely,” Dr Mashamba said. “The ban of advance payments to contractors, high bank rates, and the sharp depreciation and increased volatility of the kwacha against major currencies will certainly mean that very few local contractors will be able to take advantage of this budget provision and buy new construction equipment in this socio- economic environment.”

Dr Mashamba, however, said the financial allocation for infrastructure development would most likely positively result in increased job creation and retention.

“It is the responsibility of any government, especially during the period of an economic recession, to ensure job retention and job creation, and given the huge financial allocations for infrastructure development in this year’s budget, we in the industry will equally be expecting huge job creation opportunities in the industry,” said Dr Mashamba.

Government has allocated K120.1 billion towards infrastructure development in the country.

And Dr Mashamba listed 20 companies out of the 42 companies that were blacklisted for flouting industry regulations as having been cleared.

The cleared companies include Bleach Enterprises, China Henan Corporation, Sable Transport and Construction Limited, Shachitari Contractors, TL & P Enterprises and Vibrant Construction.

Others are Zako Zako Contractors, J.J Lowe, Greenhouse Transport, Jansi African,, Supreme Construction, Chibaris Freight, Plough Africa and China Geo Engineering Corporation.

Frachmub Construction, Portmore Construction, Abigail Sales Agency, Edmas General Dealers, Ropsa General Dealers and Faud G Sykes have also been cleared.

Labels: CONSTRUCTION, NCC

posted by MrK @ 9:36 AM