Zim’s construction sector in a precarious position

PHILLIMON MHLANGA IN MASVINGO

Zimbabwe’s construction industry is in a precarious position, with severe structural challenges threatening its growth and survival, the Construction Industry Federation of Zimbabwe (CIFOZ) has warned.

Speaking to Business Times on the sidelines of the CIFOZ Congress in Masvingo, immediate past president Ephraim Gwindingwi said the sector was under siege from multiple headwinds.

“The challenges that are being faced by the construction industry are economic volatility and funding. You know, the persistent challenge of economic instability, including inflation and currency fluctuations, continues to create uncertainty for project financing and cost management.

This often leads to cost overruns and project delays,” he said.

His remarks come as Zimbabwe pushes ahead with its ambitious infrastructure agenda, prioritising roads, dams, schools, and hospitals.

But while government is keen to modernise, structural challenges in the construction sector are undermining delivery.

Financing remains a formidable hurdle. Hyperinflation, volatile exchange rates, and an unpredictable interest rate environment have made banks reluctant to lend, while private investors demand hefty risk premiums.

“Project budgets are constantly being eroded by currency swings and rising costs of imported materials. Local contractors end up under pressure, and some projects get delayed indefinitely,” Gwindingwi noted.

The strain is compounded by chronic delays in government payments.

Many firms rely on state contracts, yet late disbursements leave them unable to pay workers, suppliers, and service providers.

For a sector where cash flow is everything, the effect is crippling.

Red tape is another choke point. Obtaining permits, securing approvals, and navigating regulations can take months.

While oversight is necessary, the cumbersome system stifles innovation, slows project execution, and discourages new investment.

“Delays in accessing imported materials, coupled with cumbersome regulations, are strangling progress. Contractors cannot plan effectively, and this discourages investment,” Gwindingwi said.

He also decried the dominance of foreign contractors in large-scale infrastructure projects.

Dams, highways, and energy projects are increasingly awarded to international firms.

“Foreign contractors are taking the lion’s share of large projects. This trend undermines the capacity of local firms and threatens the future of Zimbabwe’s built environment,” he said.

Beyond finance, bureaucracy, and foreign dominance, the industry is also grappling with a crippling shortage of skilled labour. Engineers, project managers, artisans, and technicians continue to leave the country for South Africa, the Gulf States, and Europe.

“The immigration of our most talented professionals poses a severe threat to the industry’s long-term capacity and the quality of our products,” Gwindingwi said.

This exodus has left local firms stretched.

Once known for its strong engineering and artisanal base, the industry is now struggling to nurture the next generation of professionals.

The accelerating skills flight has also created social consequences, as young Zimbabweans pursuing careers in construction face fewer role models and limited opportunities at home, a trend that could entrench a generational gap in expertise.

Both government and industry players acknowledge the gravity of the crisis.

Vice President Constantino Chiwenga, addressing delegates at the CIFOZ Annual General Meeting and Congress here in Masvingo yesterday, pledged stronger government support.

“We recognise the challenges you face, from limited access to finance and equipment to cumbersome procurement processes. We are reviewing policies, easing procurement processes, unlocking affordable lines of credit, and ensuring that even our Micro, Small, and Medium Enterprises in construction have fair access to opportunities,” Chiwenga said.

He acknowledged that barriers to finance and bureaucracy were choking growth and innovation, but stressed that government was “taking proactive steps to create a more favourable business environment.”

“Government remains committed to creating an enabling environment,” the Vice President said, adding that the administration sought to foster competitiveness, encourage innovation, and build a diverse construction industry capable of delivering world-class infrastructure.

Chiwenga emphasised that government shared responsibility with contractors and financiers to develop “efficient, innovative and sustainable infrastructure.”

Incoming CIFOZ president, Engineer Elinah Soko, echoed the need for collaboration.

“Local construction players are committed to collaborating with the Government to foster a conducive working environment that promotes growth, innovation, and development in the industry. Through this partnership, we aim to identify and address challenges, share expertise, and leverage opportunities to drive progress and deliver high-quality infrastructure projects,” Soko said.