Large-scale investment in Zimbabwe’s construction sector

 Large-scale investment in Zimbabwe’s construction sector

Large-scale investment in Zimbabwe’s construction sector.

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The government’s ongoing expenditure towards infrastructural development and investment in energy-efficient is encouraging the market demand for Zimbabwe Construction and Infrastructure companies as well as encouraging the involvement of companies that operate with technological advancements and standardizing modern methods of construction.

On a global perspective, urbanization and industrialization trends are pushing up the demand for client driven construction and infrastructure activities and also encouraging the demand for investment in transport such has railway, ports, electricity etc.

In Zimbabwe the demand for building materials, Modular construction and Building Information Modelling is on the rise as noticed across the Zimbabwe Construction and Infrastructure market.

One of the key strategies of boosting Zimbabwe’s economic growth is large-scale investment in infrastructure projects and the government’s effort to upgrade the country’s infrastructure in order to expand municipal utilities and to maintain growth in the manufacturing sector will count as contribution to the growth in construction expenditure.

The country’s need for development in better construction facilities and road infrastructure has been augmented by the rise in levels of personal income, household growth and population migration from rural to urban regions. However, access to safe and secure shelter remains a major issue to many households and so which is why the government targets to deliver 220,000 housing units as a function of effective demand during the strategy period.

To guarantee a successful housing delivery project during the NDS1 (National Development Strategy 1) Period, the government, within the urban setup will acquire 10,000 hectares for housing development as it will enable relevant organisations involved in land development to deliver residential and ancillary stands with approved lay out plans and confirmation from local authorities under law.

Last year in 2020 construction companies bounced back to progress when lockdowns and restrictions were eased as construction firm Masimba, brick maker Willdale, building material supplier Turnall and cement producers Lafarge and PPC confirmed a recovery in business during the last 3 or so months of the year.

In that same year Finance Minister Mthuli Ncube presented a 2021 budget stating that the government’s infrastructure plan will mainly focus on building capacities of local companies and make use of local resources. The African Development Bank (AFDB) had agreed to release ZWL$102 million this year for projects based on repairing infrastructure damaged by Cyclone Idai.

A staggering amount of ZWL$139.8 billion is to be spent on the 2021 infrastructure investment programme that targets dams, housing units, public buildings and the government will spend ZWL$31.6 billion on roads, the most of that will be for the Beitbridge road project where 200km additional is to be done this year 2021 and is expected to be completed in 2022.

Infrastructure projects planned for this include:

ZWL$10 billion housing budget; ZWL$10.7 billion to complete ongoing dam construction where ZWL$4.5 billion was allocated Gwayi-Shangani; ZWL$200 million to the construction of the tower at the JM Nkomo International Airport; ZWL$550 million for the upgrade of Kariba, Buffalo Range and Grand Reef airports; The AFDB will fund ZWL$491 million for Bulawayo water and sanitation infrastructure upgrade.

An estimation made by the AFDB suggest that US$34 billion is needed for Zimbabwe to fill in its infrastructure gap, due to international isolation and the country’s pile of debts Zimbabwe cannot raise such a fund.

Chen Williams

A young Energetic communication expert with an unrivaled ability to understand how to pitch stories objectively for financial publications and the Arts. Passionate about business, the youth in agriculture, video editing, photography, and music production.

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