Business / Economy
Zimbabwe's infrastructural projects hold immeasurable business opportunities
11 Oct 2011 at 13:56hrs | Views
Zimbabwe's economy is on a recovery path and is expected to grow by 9.3% for 2011, however there are a number of infrastructural barriers to the economic recovery. In order to eliminate these barriers government is prioritising power, water and sanitation, roads, communication and social infrastructure in housing, health and education. Construction companies such as Murray & Roberts are set to benefit from the deal flow, as their primary driver is expenditure in capital investment projects.
Liquidity constraints stifling investments
The low levels of capital in the economy have resulted in stifled investment in the key economic sectors, including energy and general infrastructure development. However the government has made good strides to avail funding for capital expenditure, with $551 million availed in the 2011 budget and a further $122.3 million through the Infrastructural Development Bank of Zimbabwe.
Substantial projects being undertaken but still below optimal levels. The local authorities have been working on water and sewer reticulation and rehabilitation as most of the country's piping is aged and corroded. Proplastics worked with the local authorities in the replacement of 90km of piping in Harare. With much more rehabilitation still to be done, we expect M&R to win many tenders on the back of its established record.
Order book improving
The company's order book has continued to grow with $30 million already confirmed for FY 2012. The African Development Bank estimates that about $14.2 billion would be needed to rehabilitate the country's existing infrastructure and add new capacity to meet growing demand during the decade ahead.
Liquidity constraints stifling investments
The low levels of capital in the economy have resulted in stifled investment in the key economic sectors, including energy and general infrastructure development. However the government has made good strides to avail funding for capital expenditure, with $551 million availed in the 2011 budget and a further $122.3 million through the Infrastructural Development Bank of Zimbabwe.
Substantial projects being undertaken but still below optimal levels. The local authorities have been working on water and sewer reticulation and rehabilitation as most of the country's piping is aged and corroded. Proplastics worked with the local authorities in the replacement of 90km of piping in Harare. With much more rehabilitation still to be done, we expect M&R to win many tenders on the back of its established record.
Order book improving
The company's order book has continued to grow with $30 million already confirmed for FY 2012. The African Development Bank estimates that about $14.2 billion would be needed to rehabilitate the country's existing infrastructure and add new capacity to meet growing demand during the decade ahead.
Source - Imara Stockbrokers
