News / National
Zimbabwe govt suppliers plot Treasury showdown at funeral parlour
30 May 2025 at 12:11hrs | Views
In an extraordinary show of desperation, Zimbabwean government contractors used the funeral wake of one of their own last Thursday to plot emergency engagements with Treasury officials, warning that unpaid bills dating back to 2024 are pushing businesses to the brink of collapse.
The Zimbabwe Independent has established that scores of government suppliers, many involved in high-profile infrastructure projects, convened an impromptu meeting on the sidelines of a colleague's burial. Frustrated and cash-strapped, the group resolved to confront Treasury this week in a last-ditch effort to secure overdue payments.
"The meeting was informal, but the mood was urgent," a source who attended the gathering said. "We agreed that everyone present would approach Treasury this week. Most of these companies are bleeding - invoices from 2024 remain unpaid, yet the bills keep piling up."
The suppliers say they are buckling under a severe liquidity crisis exacerbated by a government rolling out large-scale infrastructure projects far beyond its fiscal capacity.
Among the projects cited is the 584-kilometre Harare–Masvingo–Beitbridge Highway upgrade, touted as a showcase of Zimbabwe's infrastructure ambitions. But behind the scenes, contractors are reportedly battling lawsuits, asset seizures, and threats of foreclosure due to unpaid invoices.
Tinashe Manzungu, president of the Zimbabwe Building Contractors Association (ZBCA), confirmed the mounting crisis. "Some of our members are still owed huge sums by government - invoices that date back to 2024," he told the Independent in a recent interview.
"Businesses have shut down. Some owners have lost their homes. Equipment has been repossessed. It's a full-blown crisis," he added.
Contractors blame Treasury's tight monetary policy - aimed at containing inflation - for the cash crunch. The Reserve Bank of Zimbabwe has maintained a cautious approach to money supply growth, but businesses say this has resulted in a near-paralysis of payments for completed government work.
Many firms have now applied for receivership to shield themselves from creditors, while others are liquidating assets to stay afloat. Some have reportedly gone for over eight months without receiving any payments.
"There's this perception that working on national projects means financial security," said one executive. "But reality is different. Treasury is overwhelmed, and the silence is deadly."
The contractors warn that Zimbabwe's much-celebrated infrastructure revival is now at risk. Many of the companies that delivered roads and other facilities ahead of last year's Southern African Development Community (SADC) Summit are now on the verge of collapse.
"The danger is real," said one contractor. "Once these firms go under, you don't just lose infrastructure - you lose skills, jobs, and capacity. Recovery takes years."
Manzungu echoed the same concerns: "While we support the national development strategy, Treasury is clearly struggling to fund itself. It relies almost entirely on taxes, with very little foreign direct investment."
"When you consider the scale of projects being undertaken, only 30% to 40% are actually funded. That's a difficult situation," he added.
Suppliers acknowledge the country's economic challenges - including sanctions and restricted access to foreign credit - but say poor planning and overcommitment by the government are at the heart of the problem.
"We know the operating environment is difficult," one executive said. "But the government keeps floating tenders without first ensuring there are funds to pay contractors."
Despite multiple inquiries, authorities have remained silent. Deputy Transport Minister Joshua Sacco, contacted three weeks ago, referred questions to the Ministry of Finance. Treasury, however, has declined to comment.
With no formal response from the government and no payments in sight, frustrated suppliers are now preparing to escalate their calls for action - not just in boardrooms, but in public arenas, until their pleas are heard.
The Zimbabwe Independent has established that scores of government suppliers, many involved in high-profile infrastructure projects, convened an impromptu meeting on the sidelines of a colleague's burial. Frustrated and cash-strapped, the group resolved to confront Treasury this week in a last-ditch effort to secure overdue payments.
"The meeting was informal, but the mood was urgent," a source who attended the gathering said. "We agreed that everyone present would approach Treasury this week. Most of these companies are bleeding - invoices from 2024 remain unpaid, yet the bills keep piling up."
The suppliers say they are buckling under a severe liquidity crisis exacerbated by a government rolling out large-scale infrastructure projects far beyond its fiscal capacity.
Among the projects cited is the 584-kilometre Harare–Masvingo–Beitbridge Highway upgrade, touted as a showcase of Zimbabwe's infrastructure ambitions. But behind the scenes, contractors are reportedly battling lawsuits, asset seizures, and threats of foreclosure due to unpaid invoices.
Tinashe Manzungu, president of the Zimbabwe Building Contractors Association (ZBCA), confirmed the mounting crisis. "Some of our members are still owed huge sums by government - invoices that date back to 2024," he told the Independent in a recent interview.
"Businesses have shut down. Some owners have lost their homes. Equipment has been repossessed. It's a full-blown crisis," he added.
Contractors blame Treasury's tight monetary policy - aimed at containing inflation - for the cash crunch. The Reserve Bank of Zimbabwe has maintained a cautious approach to money supply growth, but businesses say this has resulted in a near-paralysis of payments for completed government work.
Many firms have now applied for receivership to shield themselves from creditors, while others are liquidating assets to stay afloat. Some have reportedly gone for over eight months without receiving any payments.
"There's this perception that working on national projects means financial security," said one executive. "But reality is different. Treasury is overwhelmed, and the silence is deadly."
The contractors warn that Zimbabwe's much-celebrated infrastructure revival is now at risk. Many of the companies that delivered roads and other facilities ahead of last year's Southern African Development Community (SADC) Summit are now on the verge of collapse.
"The danger is real," said one contractor. "Once these firms go under, you don't just lose infrastructure - you lose skills, jobs, and capacity. Recovery takes years."
Manzungu echoed the same concerns: "While we support the national development strategy, Treasury is clearly struggling to fund itself. It relies almost entirely on taxes, with very little foreign direct investment."
"When you consider the scale of projects being undertaken, only 30% to 40% are actually funded. That's a difficult situation," he added.
Suppliers acknowledge the country's economic challenges - including sanctions and restricted access to foreign credit - but say poor planning and overcommitment by the government are at the heart of the problem.
"We know the operating environment is difficult," one executive said. "But the government keeps floating tenders without first ensuring there are funds to pay contractors."
Despite multiple inquiries, authorities have remained silent. Deputy Transport Minister Joshua Sacco, contacted three weeks ago, referred questions to the Ministry of Finance. Treasury, however, has declined to comment.
With no formal response from the government and no payments in sight, frustrated suppliers are now preparing to escalate their calls for action - not just in boardrooms, but in public arenas, until their pleas are heard.
Source - Zimbabwe Independent
