Lack of long-term financing rattles CIFOZ
TENDAI BHEBE IN BULAWAYO
Zimbabwe’s oldest and largest representative body for the construction industry, the Construction Industry of Federation of Zimbabwe (CIFOZ) has decried lack of long-term financing for infrastructure projects in the country.
Speaking during the Africa Infrastructure and Construction and Built Environment conference last week, CIFOZ president, Emmanuel Chimedza, said local funding is mainly for a short-term investment which is not very conducive for the construction industry , which needs long term loans.
“When importing equipment, it takes nine to 12 months and money will be tied up for quite a long period of time. The moment these equipment land at the border, the government wants tax,” Chimedza said.
Speaking at the same event, deputy minister of Mines and Mining Development, Polite Kambamura, said the construction sector was crucial and needed to be strengthened.
“There is a need to explore opportunities within the infrastructure value chain and harness the potential that exists in order to grow the industry and subsequently contribute significantly to the gross domestic product,” Kambamura said.
He said the government has put forward incentives to attract investment in various infrastructure projects.
“We have brilliant ideas on improving our infrastructure development but as usual financing is always the biggest challenge. We are looking at how best we can support these projects with limited resources.
The government has put forward incentives to attract investment in various infrastructure projects.”
He added that the government had limited budgetary capacity.
Meanwhile, a Bulawayo property development and management company, Radar Holdings Limited is set to service 9000 residential and commercial stands in the city.
“Kings City, is a 2 100-hectare premium mixed-use development in Bulawayo, located about 8km outside of the city of Bulawayo. The project will see up to 9 000 residential stands available to the market. Augmented with up to 430 light industrial stands, several shopping centres, and 14 private schools, hospitals and other facilities,”
Radar Holdings’ finance director Walter Zimunya said.
