Source: The Herald – Breaking news.
Oliver Kazunga
Senior Business Reporter
COMPANIES in the construction sector continue to enjoy healthy business from the various key public infrastructure projects being implemented by the Government, which has been consistent in terms of making timeous payments to the contractors, an industry executive said.
The Government has identified infrastructure as one of the key economic enablers and priority has been placed on infrastructural development including road habilitation, dam and housing construction.
Zimbabwe’s infrastructural development initiative also dovetails with the Government’s vision of transforming the country into an upper middle-income economy status by 2030, anchored by the National Development Strategy 1 (NDS 1), a five-year economic blueprint launched in 2021.
Construction Industry Federation of Zimbabwe (CIFOZ) chief executive officer Mr Martin Chingaira said in an interview in the first quarter of the year, infrastructural development by local contractors sailed ahead smoothly.
“We are still in business, all the projects such as the Harare-Masvingo-Beitbridge highway rehabilitation project awarded to local contractors are going on smoothly.
“Quite a number of people are being subcontracted, over and above the Emergency Road Rehabilitation Programme (ERRP 2) and the projects are going on smoothly across the country with people (contractors) being paid on time,” he said.
Private sector players are participating in phase 2 of the $70,5 billion Emergency Road Rehabilitation Programme.
Mr Chingaira said on the rare occasions in the past when payments were delayed it was for projects whose funding the Government would not have mobilised yet.
“In the past, there were instances where the Government would invite tenders for projects whose funding would not have been mobilised despite being budgeted for in the National Budget and this created situations where payments get delayed.
“However, at the moment we are excited that payments are being made on time and we also urge our members to go for projects whose funding is available,” he said.
In the 2023 National Budget, Finance and Economic Development Minister Professor Mthuli Ncube said the Government would continue prioritising the upgrading and rehabilitation of the country’s road network.
The Government has also placed emphasis on the completion of the ongoing works on major roads and regraveling of feeder roads.
The Government is also financing the construction of dams including Gwayi-Shangani in Matabeleland North province which is expected to be completed this year.
Once complete, the massive water body will propel sustainable economic growth and development through fostering projects such as irrigation in the Gwayi area, tourism and recreational facilities as well as supplying water to Bulawayo, Zimbabwe’s second-largest city that experiences perennial water challenges.
The awarding of infrastructural development tenders to local players, Mr Chingaira said, was promoting the viability of main contractors, sub-contractors and suppliers of building materials.
“The policy that ‘a country is built by its people’ the Government has adopted has seen our people being considered in infrastructure development projects and this is fostering viability of local construction companies,” he said.