Business / Local
Construction industry on the road to recovery
21 Dec 2011 at 05:13hrs |
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According to a 2011 review of the industry compiled by the Construction Industry Federation of Zimbabwe (CIFOZ), several projects that had been put on hold, have been revived following the inception of the multiple currency system three years ago.
CIFOZ noted that the sectors capacity utilisation has also increased to 33% this year from 22% last year as government which accounts for key construction projects is injecting funds for the development of various sites across the country.
However, it has emerged that the industry is reeling under acute funding shortages as local banks continue to impose stringent borrowing conditions at short term durations.
Furthermore, construction companies are struggling to re-attract skilled labour mainly engineers who left the country for greener pastures in the past decade.
The industry has a potential of accounting for at least 20% of the country's annual Gross Domestic Product which is a measurement of total value of goods and services produced yearly.
CIFOZ noted that the sectors capacity utilisation has also increased to 33% this year from 22% last year as government which accounts for key construction projects is injecting funds for the development of various sites across the country.
However, it has emerged that the industry is reeling under acute funding shortages as local banks continue to impose stringent borrowing conditions at short term durations.
Furthermore, construction companies are struggling to re-attract skilled labour mainly engineers who left the country for greener pastures in the past decade.
The industry has a potential of accounting for at least 20% of the country's annual Gross Domestic Product which is a measurement of total value of goods and services produced yearly.
Source - Zbc News
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