By HELEN ZULU –
THE Zambia State Insurance Corporation (ZSIC) has introduced a new product in the construction sector called non-collateralised bond.
ZSIC General Insurance managing director Charles Nakhoze said ZSIC had come up with the non-collateralised bond to help Zambian contractors to participate in the construction of infrastructure in the country without having to produce collateral.
Mr Nakhoze noted that Government had made a deliberate plan to improve infrastructure hence ZSIC was responding to that by helping local contractors to borrow without having to produce a bond.
He said in an interview in Lusaka that most contractors had problems in finding bonds to enable them participate in government jobs hence the move by ZSIC to provide financial guarantees for the contractors.
“As you may be aware, for a contractor to participate in any government job, they are required to provide collateral; so many contractors have been having problems with that. That is why we have
come up with this product to encourage more participation by local contractors in government projects,” he said.
He said the company would be with the contractor from bid stage through performance stage up to the time the contractor gets the advance payment bond.
He said the introduction of the product would enhance performance by the local contractors.
ZISC had also created capacity by training contractors and that this was not only being done for Zambian contractors alone but covered any contractor interested in taking up government projects.