Association of Building and Civil Engineering Contractors (ABCEC) has expressed optimism that the construction industry in Zambia is poised for expansion following the allocation US$1.4m towards infrastructure development in the 2016 budget.
ABCEC president Michael Nyirenda said the proposed US$1.4m allocation towards infrastructure will boost infrastructure development and enhance economic growth.
The ABCEC president said the money will also help sustain jobs already created in the sector.
He said the money will turn Zambia into an enormous construction site as works will cut across all sectors.
“As ABCEC, we are excited that the government has prioritized infrastructure development as a key driver of the economy. It is a good gesture considering the number of jobs that the construction industry has created,” he Nyirenda
He said part of the money has been channeled towards road infrastructure which will enhance communication in Zambia and help in the completion of various road projects which have stalled.
But Nyirenda urged Industrial Development Corporation to take advantage of the massive budgetary allocation to construction activities to build capacity in construction companies through acquisition and venture capital arrangements.
Meanwhile, he urged contractors and clients to introduce a fluctuation clause in conditions of all future contracts to curb the variations in inflation and exchange rates.