Silent jobs massacre sweeps through Zimbabwe

A silent but brutal jobs massacre is sweeping across Zimbabwe's construction industry, as companies contracted by the government for key infrastructure projects plunge into financial turmoil due to chronic delays in payment.

Industry sources and trade unions confirm that at least 500 workers have been retrenched since March, with more jobs hanging in the balance as the government's fiscal gridlock cripples project delivery and destabilises an already strained economy.

The deepening crisis follows last week's Independent exposé, which revealed that several contractors are yet to be paid for work completed as far back as January 2024. The confluence of an aggressive state-led infrastructure rollout and a debilitating liquidity crunch has pushed many firms to the brink - sparking layoffs, asset seizures, and a flood of legal action.

Among the worst hit are contractors working on flagship projects like the 584-kilometre Harare-Masvingo-Beitbridge Highway, where cashflow challenges are stalling momentum and creditors are closing in.

The crisis reached fever pitch last Thursday when heartbroken contractors - attending a funeral in Harare for a fellow supplier who died in financial distress - turned their grief into resolve. Executives agreed to jointly approach the Ministries of Finance and Justice to demand immediate payment interventions.

But as government delays continue, it's Zimbabwe's construction workforce that is paying the heaviest price.

"We have witnessed significant retrenchments, and we are still compiling the actual numbers," said Muchapiwa Mazarura, secretary-general of the Zimbabwe Construction and Allied Trade Workers Union (ZCATWU), in an interview this week.

"For over a year, we've faced severe challenges negotiating salaries and wages. Employers claim they're not being paid by government, but even some who aren't involved in public projects are hiding behind that excuse," he said.

Mazarura also revealed that some contractors are now seeking exemptions from adhering to Statutory Instrument 45 of 2013, which governs wage agreements. "We're seeing more requests at the National Employment Council for wage waiver approvals," he added.

Tinashe Manzungu, president of the Zimbabwe Building Contractors Association (ZBCA), described the situation as a looming collapse.

"Our members are owed large sums, with invoices dating back to early 2024. Some companies have shut down completely. Others have lost personal assets like homes," he said. "Treasury's silence has made the situation worse - some contractors have gone up to eight months without any payment."

Manzungu said while government infrastructure projects are often perceived as financially secure, "that's a myth - and this time it's killing businesses."

Government insiders told the Independent that Treasury is overwhelmed by a ballooning public wage bill, surging debt repayments, and slow revenue inflows. But contractors blame poor project planning, arguing that tenders are being awarded without secured financing.

"Even when a project is in the national budget, it often receives only 30% to 40% of the required funds," said Manzungu. He urged government to adopt alternative funding models, including public-private partnerships (PPPs) and land-for-debt swaps.

Some companies have already signaled openness to receiving land as partial compensation, as public debt now surpasses US$21 billion and Finance Minister Mthuli Ncube acknowledges worsening "cash constraints."

Industry leaders fear that without urgent action, the ripple effects could devastate Zimbabwe's fragile economic recovery.

"The danger is real," warned one senior contractor. "This isn't just about roads or bridges. If these firms collapse, we lose skills, jobs, capacity, and future competitiveness. Rebuilding will take years."

Attempts to secure official comment from the Ministry of Finance have been unsuccessful. Finance Secretary George Guvamatanga has not responded to calls or messages, while Deputy Transport Minister Joshua Sacco referred all inquiries back to the finance ministry.

In a bid to survive, some firms say they are now competing for contracts in neighbouring countries, abandoning domestic projects amid rising uncertainty and payment risk.

As the impasse drags on, Zimbabwe's ambitious infrastructure revival - once touted as a cornerstone of economic transformation - risks becoming a graveyard of abandoned sites and broken promises.

Unless fiscal priorities are urgently realigned and transparency restored, thousands more jobs could vanish - and with them, the country's hopes for a sustainable rebuild.