FOREIGN COMPANIES’ DOMINANCE OF CONSTRUCTION INDUSTRY HALTED

MBABANE – Foreign companies will no longer have it easy to dominate the local construction industry.   

All tenders awarded to foreign contractors, where skills are not available locally, it will be mandatory for Swazi contractors to be engaged in a joint venture formation at a minimum of 30 per cent.

This is despite the fact that foreign contractors may only tender for contracts above E120 million or below E120 million only where a specialised skill would be involved.
These provisions are contained in the draft Construction Industry Council (CIC) regulations of 2017.

It has also been mentioned that a foreign contractor could only be eligible for registration with the Council on application and payment of the prescribed fees. Additionally, an application for registration should be accompanied by proof of qualifications of the contractor or, in the case of a company or firm, proof of qualifications of the directors or members of the firm, as well as the names of nominees of such entities and their qualifications.

A foreign company will also be expected to provide proof of compliance with the provisions of Section 41 of the Act, proof of compliance with tax laws and evidence of previous completed projects 

“The issuance of a registration certificate to a foreign contractor does not qualify as approval to engage a foreign company or firm without the prior written approval of the Council as provided for in Section 40 of the CIC Act 2013,” stipulates the regulations.
Further, a contractor who wishes to employ foreigners in the construction industry will be expected to first apply and obtain approval of the CIC.

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