THURSDAY, 4.00PM:
BUSINESS in South Africa is losing out on millions of dollars in World Bank-financed projects because SA companies are not taking full advantage of opportunities on offer, the World Bank’s resident representative in South Africa, Judith Edstrom, said on Wednesday.
Speaking at a briefing session at the Port Elizabeth Regional Chamber of Commerce and Industry she said the World Bank finances projects worth about $19-billion a year. “South African companies should become more involved. As members of the World Bank you have a right and an opportunity to tender for any project around the world,” she said.
The bulk of World Bank funding is currently going to East Asia and Latin America, with Africa accounting for around $1,7-billion of the loans.
Companies of all sizes can tender for participation in projects, and private enterprise participation in projects is assured as a matter of policy by the World Bank.
Edstrom said that South Africa’s slice of the cake has diminished over the past few years. In 1994 local companies won contracts worth around $92-million. This rose to $135-million in 1995, largely due to drought-relief operations in neighbouring states, but slipped back to $20-million in 1996.
Edstrom added that South African consultants have also been slow to take advantage of the opportunities on offer, and only 23 are registered with the World Bank.