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Zambian Construction Companies Say They’re Forced to Close Down Due to Chinese Competition
March 6, 2024
CategoryAfrica Central
Content TypePackage
LanguageEnglish
Transcript/Script((INTRO))
[[Construction companies in Zambia say Chinese companies are moving into their area and taking away their business. They say the competition has forced some local construction companies to close. VOA’s Daniel Tonga reports from the capital Lusaka.]]
((NARRATOR))
For more than two decades, China has been investing and operating in Zambia. But some business owners say they can’t compete with Chinese companies that are outbidding them for construction contracts.
One such contractor is Lawrence Mukasa.
((Lawrence Mukasa, Bigemmah General Dealers)) ((Male, in English))
“Even the small contracts that we pray for to get, they are all being taken away by the Chinese, so it’s kind of a challenge, it’s kind of hard competing with the Chinese.”
((NARRATOR))
Some contractors like Muchinga Mwandia say China’s Belt and Road Initiative, which funds infrastructure projects in many developing countries, typically bring in Chinese workers, leading to unemployment for Zambians.
((Muchinga Mwandia, Contractor)) ((Male, in English))
“You know, when you are into business, construction business, if you stay for a year without a job, it’s not only you, the owner of the company, who is going to suffer, you’ve got other people who work for you, you know what I mean? How are you going to pay those people if you are not given a job?”
((NARRATOR))
The Ministry of Commerce in Zambia says 69% of capital construction projects like roads are going to Chinese firms. According to the Chinese state-run news outlet Xinhua, those projects have created jobs for locals.
But Edgar Siakacoma, the president of Zambia’s National Association of Medium and Small-Scale Contractors, says the arrival of Chinese companies has led to the collapse of big Zambian construction firms.
((Edgar Siakacoma, National Association of Medium and Small-Scale Contractors)) ((Male, in English))
“Zambian companies have been wiped out by these Chinese companies because they are backed by their government in the first place and two, they have significant sources of cheap capital so they can access money and equipment at concessional rates while the Zambian companies are unable to access such facilities.”
((NARRATOR))
The Chinese Embassy in Lusaka and Chinese-led business entities in Zambia did not respond to VOA’s request for comment.
Those in the construction sector, like Enock Chitabu, say the Zambian government should empower local contractors with financing and preferentially award contracts to local businesses who qualify as a way to compete with the Chinese contractors.
((Enock Chitabu, Yavantu Construction and Maintenance)) ((Male, in English))
“The government should make sure that contracts are awarded to the local contractors who are qualified. There shouldn’t be any segregation or any corruption in the awarding of these contracts.”
((NARRATOR))
Japhet Chiyesu, another contractor, agrees.
((Japhet Chiyesu, Japhetic Pateth General Dealers)) ((Male, in English))
“One way government should help us in terms of fighting the competition is through these programs that have come, like the empowerment programs, there is Citizens Economic Empowerment Commission and also we have CDF (Constituency Development Fund) so if we are given like those funds, we will be able to fight the competition.”
((NARRATOR))
For now, Zambian construction companies are left to compete with Chinese counterparts mostly with their own resources — and are having a tough time winning contracts to stay in business.
((Daniel Tonga, VOA News, Lusaka, Zambia.))
NewsML Media TopicsArts, Culture, Entertainment and Media
