FLAME Arab Contractors has been officially launched in Zambia with Government hoping that the firm can reduce the price of constructing a kilometre of a road from US$1 million to US$350,000.

Minister of Commerce, Trade and Industry Felix Mutati said the Egyptian company is able to deliver six kilometres of road per day compared to the available contractors who work on an average 100 kilometres per week.

He said the cost of constructing a kilometre of road in Egypt is about US$150,000 compared to US$ 1 million on average per kilometre in Zambia.

Mr Mutati also expressed worry at contractors who are not charging competitive prices in the industry saying they are slowing down infrastructure development.

He said local contractors are not delivering competitive prices in the construction sector hence Government’s decision to allow more foreign investment in the sector.

He was speaking at the official launch of Flame Arab Contractors, an Egyptian firm, in Lusaka on Wednesday night.

Mr Mutati said most roads have taken so long to be constructed and cited the Mutanda-Chavuma road as one of them.

He said many people are fed up with contractors who are not able to deliver. He said most contractors were just good at billing penalties, variations and standing time.

Mr Mutati said the investment by Flame Arab Contractors will add on to the US$50 million investment that has been accumulated from Egypt in the last two years.

He said the investment has created over 2,000 jobs.
Mr Mutati commended the company for showing generosity by offering to train 20 Zambian engineers and to provide them air tickets.

And Flame Arab Contractors intends to invest US$10 million in the construction industry in Zambia this year.

The company will begin with an initial capital of US$10 million as a start-up and will raise the investment capital as it grows.

Company chairman Mohammad Salama said the firm will bring the cost of construction down to facilitate more development using the same resources at hand.

Mr Salama said his firm sees opportunities in projects like the North-South Corridor, the expansion of local airports and the development of railways.

He also urged Government to use the Public Private Partnership Act to create more opportunities for the private sector.

He said his company has also been selected by the Ministry of Education to build Malukupwika Teachers’ Training College in Chinsali consisting of 26 buildings.

The company has been in Zambia for four years now and has since constructed Finsbury Park, Radisson Blue Hotel, Coliseum and Diamonds of Lusaka.