Govt must end foreign fronting in cleaning industry
IT IS unfortunate that Statutory Instrument (SI) No. 22 of 2019, a law designed to protect indigenous Zambians from being sidelined in their own economy, has remained largely unimplemented seven years after it was signed.
The law, which reserves the provision of cleaning services for Zambian-owned companies, has been systematically circumvented by foreign investors using Zambians as fronts to register cleaning companies at the Patents and Companies Registration Agency (PACRA).
This is not merely a bureaucratic oversight, but a direct attack on the economic space that rightly belongs to our citizens.
Cleaning Association of Zambia (CAZ) president Lawrence Makumbi recently highlighted how foreign-owned companies, especially in the mining and retail sectors, have taken advantage of loopholes in the law to dominate the cleaning industry.
Instead of genuine Zambian businesses benefiting from local contracts, foreign companies continue to reap profits while using local citizens merely as figureheads. PACRA, which is responsible for registering companies in accordance with the law, has failed to act decisively against this practice.
By allowing foreign companies to front Zambians as shareholders, the agency undermines the very purpose of SI No. 22 and perpetuates economic marginalization, ultimately taking away ownership.
This is not a matter of punishing foreign investors, it is about enforcing the law and creating a level playing field for Zambians to participate in the running of the economy. Foreign companies often have far greater financial muscle than local firms, giving them a clear advantage in securing contracts.
When Zambians are used as fronts, the law is rendered meaningless, and indigenous entrepreneurs are left to struggle for scraps. Such practices not only harm local business development but also deprive ordinary Zambians of livelihoods they are legally entitled to.
It is also disturbing that parastatals and large chain stores, which should lead by example in supporting local businesses, have been implicated in flouting SI No. 22, the law that is supposed to empower locals. When procurement managers in these institutions favour their own or foreign affiliates, they exacerbate inequality and stifle Zambian entrepreneurship.
Government oversight is crucial in these sectors because they set the standards for how business should be conducted nationwide. Failure to enforce the law sends a message that Zambian interests are secondary to foreign profit.
The government must urgently intervene to restore the intent of SI No. 22. PACRA needs to review its registration processes and ensure that company ownership structures genuinely reflect Zambian control. Contracts awarded to cleaning companies should be contingent on compliance with the SI, and any violations should attract meaningful sanctions.
Additionally, parastatals and major private institutions must be compelled to prioritise Zambian businesses and discontinue the practice of fronting or outsourcing to foreign entities in violation of the law.
The continued circumvention of SI No. 22 is not only sad but unacceptable. Indigenous Zambians should not have to compete with foreign companies that exploit loopholes to dominate sectors legally reserved for locals.
The government’s failure to implement and enforce this law undermines economic sovereignty, discourages local entrepreneurship, and erodes public trust. It is high time that Zambians are genuinely empowered to benefit from the opportunities within their own country.
The promise of SI No. 22 was clear, which was to protect and promote indigenous Zambians in the cleaning industry. The government now has a duty to fulfill that promise. Allowing foreigners to take over Zambian jobs while using locals as fronts is a betrayal of both the law and the people.
Every Zambian who aspires to start a business deserves a fair chance without having to navigate a system rigged against them. If the law is to have any meaning, enforcement must be decisive, impartial, and immediate.
SI No. 22 of 2019 is more than a piece of paper, it is a tool for economic justice and recovery. Its implementation is critical for ensuring that Zambians reclaim the jobs and contracts that are rightfully theirs.
The government must act now to stop the domination of foreign companies in sectors reserved for locals and ensure that Zambian entrepreneurs are empowered to thrive in their own economy.
