Chinese take over local construction industry

via Chinese take over local construction industry The Standard September 22, 2013

PLAYERS in the construction sector have called on the new government to put in place policies and laws that protect local contractors and help revive the sector.

Local contractors are facing stiff competition from well-funded foreign firms, mainly Chinese companies.

Former president of the Construction Industry Federation of Zimbabwe, Daniel Garwe last week called on government to put in place laws that protect local players in the construction sector.

“We now need laws that protect local players in the construction sector. There are many foreigners making a presence and taking advantage of opportunities in the market at the expense of local players,” said Garwe.

He said the sector was experiencing a dip because of the current liquidity crunch.

“There is nothing happening. We are a service industry, people focus more on basics such as putting food on the table and health, before turning attention to infrastructure, this adverse situation is not good for the industry,” he said.

Local contractors have been driven out of business by Chinese firms that are behind most major construction projects currently going on in the country.

Following Zimbabwe’s diplomatic standoff with Western countries more than a decade ago, Chinese contractors virtually took over the construction sector as government adopted a “Look East” policy.

The National Defence College, Long Cheng Plaza in Belvedere and the National Sports Stadium are among the major projects which Chinese companies constructed without any local sector participation.

Construction Technology Zimbabwe managing director, Kudzai Mutisi said local construction businesses were facing a host of challenges.

He said local players in the sector were facing low projects turnover and non-professional and unregistered contractors were flooding the market.

The industry continues to reel under critical funding constraints as local banks impose stringent borrowing conditions against the background of liquidity challenges.

Albert Kadende of Gazaf Building Contractors said the economic environment has not been conducive to local construction companies, as it was difficult to access finance.

“I think indigenisation should be fully applied in this regard, where foreign companies should become sub-contractors while local companies have access to major projects,” said Kadende.

Experts in the construction sector said South African contractors benefitted during the 2010 World Cup preparations because the country had clear laws that protected indigenous contractors.

A key construction law in South Africa is the Construction Industry Development Board (CIDB) Act 38 of 2000 which provides for the establishment of the board to implement an integrated strategy for the reconstruction, growth and development of the construction industry.

The Act further creates a register of contractors linked to a best practice contractor recognition scheme, and a register of projects linked to a best practice project assessment scheme.

Both these registers are central to the implementation of the integrated strategy.

“We should have laws in place stating that a certain percentage of work should be sub-contracted to locals or joint ventures set up. Under the circumstances, that is the only way we can grow as locals,” said Garwe.

Most players in the construction industry are using obsolete equipment and facing difficulties in accessing capital, placing them at a disadvantage when competing with well-funded foreign firms at tender bids.

 

COMMENTS

WORDPRESS: 9
  • comment-avatar

    Asi indigenisation neBlack Empowerment zvakapera pana 31July???

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    Zimbabwe has become a Chinese colony. Soon the chefs and their Chinese masters will control all resources and people will become their drones.

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    So much for 51% indigenous holding?

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    Zimbali 7 years ago

    Nzou. I agree with you. Just wait and see when Zimbabwe becomes a full time colony how the Chinese treat Zimbabweans.

    • comment-avatar

      The Chinese treat the people right now. They should be chased out before they take the lot

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    gorongoza 7 years ago

    Residence of South China (formerly Rhodesia) must not complain about their masters presence. They invited them, gave them all access to all secotors of the economy and begged the Cgines to colonise them…oh please colonise us more and more everyday our frined! Musachema nhema! Fairai mazhingas edu.

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    hameno 7 years ago

    ma china madhodhi evanhu…….

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    Sekuru Tiva 7 years ago

    Even if you guys are given the opportunity to do the job,the truth is delivering will be your biggest challenge .In the construction industry we are yet to see a Masiiwa of the sector.Take for example the dualisation of the major highways of the nation,more than a decade Harare to Norton,Airport road just under 10km 12 or more years,and pambudzi varikuto gadzira zvavo mapot hole.So to be honest and frank you are just useless .If the same guys that constructed the Bikita -Masvingo road and Gutu -Chivhu road can still be found,let them be given the job and you guys you partner them mozosiirwa machinery then momirira ku repair nekugadzira tumwe tudiki gaining experience that way you can learn,but some are too lazy to even copy.

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    Rudadiso 7 years ago

    This has always been Mugabe’s one desire; that Zimbabwe becomes China’s colony. He will rest in peace with the knowledge that he delivered the country to the Chinese. That is waht is called look east policy.