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Local construction firms court Ethiopians to win big contracts

A huge portion of the value of contracts goes to foreign firms

However, most of this spending has always gone to the international firms, according to the finance minister, Matia Kasaija.

“For instance, in the FY 2017/18, a total of Shs 2.167 trillion was contracted out, of which Shs 1.9 trillion was awarded to foreign firms,” he  said. “Additionally, in the FY 2018/19, Shs 2.632 trillion was awarded out, of which Shs 1.895trillion was awarded to foreign firms.

Kasaija said 70% (Shs 1.113trillion) of the contracts have been awarded to foreign firms in the first quarter of this financial year.

“So, a lot of cash leaves this country, a trend that need to be reversed” he said adding that the local firms’ bold step to partner with their Ethiopian counterparts is highly commendable since part of the cash awarded to the contractors will be retained within the economy.

He said as the country moves towards achieving Vision 2040, the volume of construction work is expected to increase and so is the need to work smart and closely with our partners.

“We need to employ innovative means of doing work, deliver work timely, effectively and efficiently so as to achieve the value of the money spent,” he said.

Ethiopia’s Ambassador to Uganda, Alemtsehay Meseret, said the new partnership will increase the capacity of these companies and compute in the complex and growing and dynamic of the sector.

“As a matter of fact, few construction and engineers of Ethiopia have had engagement in Uganda working on many private and government projects,” she said, adding that partnership will allow local companies to grow, develop and retain experience and expertise from foreign companies, build up working capital reserves and become competitive locally and internationally.

She also revealed that the plan of Kampala-Juba-Addis Ababa road project is being studied by the Ethiopia government.

Eng. Aselef Bogale, manager, construction department at Orchid Business Group PLC and leader of the delegation told The Independent in an interview that they are ready to work with the local firms to share their experiences, technical skills and capital as they all strives to grow.

He revealed that the Ethiopian firms  also plans to ride on partnership to introduce new services on the Ugandan market  including but limited to provision of services in pile foundation, water well drilling, heavy lifting services and transportation.

He said the firms may also consider setting up a subsidiaries in Uganda owed to the favourbale labour laws and friendly population.

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One comment

  1. How long do those people swinging guns and running local street vendors to death think this government is going to last. The comments by those in position of power about the police right to shot to kill😭. My God! What an animal. I remember reading about some die hard Party supporter who had everything yellow taken out of service. Look around before you think you are untouchable. Can one compare UG with Sudan, Libya, etc. Where are they now. My fellow human being watch what you say and do!

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