Zimbabwe's construction industry faces crisis

Zimbabwe's construction sector is under severe strain, with economic volatility, financing difficulties, and structural bottlenecks threatening its growth and sustainability, the Construction Industry Federation of Zimbabwe (CIFOZ) has warned.

Speaking at the CIFOZ Congress in Masvingo, immediate past president Ephraim Gwindingwi said the industry is facing multiple headwinds that are undermining project delivery. "Economic instability, including inflation and currency fluctuations, continues to create uncertainty for project financing and cost management. This often leads to cost overruns and project delays," he noted.

Despite government's push to modernise infrastructure - including roads, dams, schools, and hospitals - local contractors are struggling. Hyperinflation, volatile exchange rates, and unpredictable interest rates have made banks reluctant to lend, while private investors demand high-risk premiums. Project budgets are frequently eroded by currency swings and rising costs of imported materials, leaving contractors under immense pressure and causing indefinite project delays.

Delays in government payments further exacerbate the problem. Many construction firms rely on state contracts, but late disbursements hinder their ability to pay workers, suppliers, and service providers, crippling cash flow-dependent operations.

Bureaucracy also stifles progress. Obtaining permits, approvals, and navigating regulations can take months, slowing project execution and discouraging new investment. Gwindingwi said: "Delays in accessing imported materials, coupled with cumbersome regulations, are strangling progress. Contractors cannot plan effectively, and this discourages investment."

The dominance of foreign contractors in large-scale projects is another challenge. Dams, highways, and energy infrastructure are increasingly awarded to international firms, limiting opportunities for local players and threatening the country's long-term construction capacity.

A severe skills shortage compounds the crisis. Engineers, project managers, artisans, and technicians continue to emigrate to South Africa, the Gulf States, and Europe, leaving local firms stretched and struggling to nurture the next generation of professionals. Gwindingwi warned that this talent exodus could entrench a generational gap in expertise and reduce the quality of Zimbabwe's built environment.

Government officials acknowledge the gravity of the crisis. Vice President Constantino Chiwenga, addressing delegates at the CIFOZ Annual General Meeting, pledged stronger support. "We recognise the challenges you face, from limited access to finance and equipment to cumbersome procurement processes. We are reviewing policies, easing procurement processes, unlocking affordable lines of credit, and ensuring that even our Micro, Small, and Medium Enterprises in construction have fair access to opportunities," he said.

Chiwenga stressed that barriers to finance and bureaucracy are stifling growth and innovation but assured that government is taking proactive measures to create a more conducive business environment. "We remain committed to fostering competitiveness, encouraging innovation, and building a diverse construction industry capable of delivering world-class infrastructure," he said.

Incoming CIFOZ president, Engineer Elinah Soko, echoed the need for collaboration between government and industry. "Local construction players are committed to working with the Government to foster a conducive environment that promotes growth, innovation, and development. Through this partnership, we aim to identify and address challenges, share expertise, and leverage opportunities to deliver high-quality infrastructure projects," Soko said.

As Zimbabwe continues its ambitious infrastructure agenda, the construction sector's ability to overcome financial, bureaucratic, and skills-related challenges will be pivotal in determining the success of national development plans.