LUSAKA, Aug. 1 (Xinhua) -- The Zambian government on Wednesday challenged commercial banks to partner with the government in developing the country's infrastructure projects.
Ronald Chitotela, Minister of Housing and Infrastructure Development, said the government has embarked on countrywide infrastructure development projects and needs the support of financial institutions.
The Zambia minister said the country was like a huge construction site which financial institutions should take advantage of and support the government because construction was a big business.
"You can create a special purpose vehicle that deals specifically with contractors under the conditions that prevail in the construction sector," he said when Leina Gabaraane, chief executive officer of Stanbic Zambia, one of the commercial banks operating in the country, paid a courtesy call on him, according to a statement released by the ministry.
According to him, commercial banks will not go wrong by providing financial services in the construction industry in view of the many infrastructure projects which government was undertaking, adding that the country was now a role model in the region in terms of infrastructure development.
Charles Mushota, permanent secretary in the same ministry, said most construction companies were not benefiting from loans provided by banks because of conditions attached to them which do not favor them.
He said there was need for commercial banks to understand how the construction sector operates so that they start providing financial support to the sector.
On his part, the bank official said the bank fully supports government's infrastructure agenda.
