Business

‘Enforce 20% sub-contracting policy’

TRYNESS MBALE, Lusaka
CHIEF Mumena has urged Government to ensure that the 20 percent sub-contracting policy is effectively enforced to afford more local contractors participation in the sector.
The chief also said Government should ensure that it comes up with policies which will favour local contractors in the sector.
He said in an interview recently that there is need for policies that will enable local participation in the construction sector, which is dominated by foreigners who have access to funds and contracts.
“Government needs to encourage more local people to participate in the construction sector. I think it should come up with policies that will favour local contractors such as the 20 percent sub-contracting policy.
“But the policies should be implemented so that more locals get involved in the sector,” he said.
Chief Mumena also called on financial institutions to consider coming up with products that will enable people in informal employment to access finance to better their livelihood and effectively contribute to the development of the economy.
The traditional ruler said currently, people in informal employment are not usually favoured when it comes to access financing from banks because of the collateral required by the institutions.
He said if banks do not come up with such products, those in the informal sector will continue wallowing in poverty.
“Currently, the conversional methods of financial institutions only favour those who are in formal employment, and those who are on contract and informal employment are not usually considered,” he said.
Chief Mumena said banks should look at ways of making loans available to common people so that they can invest in businesses and acquire land as well as buy houses.
He said if people have access to finance decent accommodation and be able to put food on the table, poverty levels will be reduced in the country through effective participation in the economy.


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