Construction costs rise in Zimbabwe as material prices climb

Building and infrastructure development in Zimbabwe is becoming increasingly expensive, with rising construction costs driven by higher demand and escalating material prices, according to the Zimbabwe National Statistics Agency.

Data released by ZimStat shows that the US dollar cost of civil engineering materials used in infrastructure projects increased by 6.7% in March 2026, while prices in Zimbabwe Gold rose by an average of 7.1%.

For the first quarter of 2026, other building materials recorded increases of 3.7% in US dollar terms and 4.1% in ZiG compared to December 2025.

However, the cost of construction plant and machinery remained largely stable over the same period, offering some relief to contractors operating in the sector.

The rising input costs are placing pressure on construction firms, particularly those locked into fixed-price contracts signed earlier in the year. Analysts say the situation could worsen if fuel prices continue to rise, given their direct impact on transport and production costs.

The trend comes at a time when Zimbabwe is pushing ahead with multiple infrastructure and housing development projects, increasing demand for construction materials and services across the country.