SOURCING BUILDING SUPPLIES LOCALLY COUNTER-PRODUCTIVE

MBABANE – Contractors are strongly of the view that imposition of restrictions to source building material from local suppliers’, will not only increase the cost of doing business, but also defeats the purpose of Swaziland being an open economy.

An open economy is an economy in which there are economic activities between the domestic community and outside.
People and even businesses can trade in goods and services with other people and businesses in the international community, and funds can flow as investments across the border.  Trade can take the form of managerial exchange, technology transfers, and all kinds of goods and services.

As the debate on the contentious Construction Industry Regulations rages on, concerned contractors, who will convene a meeting at Esibayeni Lodge to interrogate the regulations today, have recommended that CIC ought to include a clause in the regulations that only locally manufactured goods should be sourced locally.

“We should not be compelled to source goods locally either through imposition of levies from externally sourced building material or under the pretence of promoting local businesses yet there are ulterior motives to enrich some construction suppliers,” argued a contractor who asked not to be named in fear of victimisation.  He argued that imposition of a levy on all imported building material effectively meant CIC was discouraging sourcing of goods from external suppliers, who are in most instances far cheaper.

Section 65 of the regulations which speaks to Levy on imported or exported goods, stipulates that the minister shall, upon the recommendation of the council, impose by notice published in the gazette a levy on certain building materials imported by contractors. 

It was clarified for purposes of this regulation 65 a contractor means a person or a body of persons who undertake to execute and complete construction works and excludes a supplier and manufacturer of building materials. The CIC has most recently stated that it was government’s policy to support the use of locally manufactured and traded material in the construction industry.

It was mentioned that council promotes this policy position through encouraging the sourcing of construction material from local suppliers unless it could be proven that such material was not available in Swaziland.

Post your comment

Your name:

Your e-mail address:

Add your comments:

Please enter the code you see in the image:

Image:

Code: