THE Construction Industry Federation of Zimbabwe (CIFOZ) believes the coming in of international financiers like Geiger International on the Beitbridge-Harare road will attract more international firms into Zimbabwe on future construction projects.
BY TATIRA ZWINOIRA
In a statement yesterday, CIFOZ chief executive officer, Martin Chingaira said construction firms were cautiously optimistic for a future infrastructure spending boost.
“The advent of international financiers like Geiger International, coming into play on the Beitbridge-Harare road will open the gates for more firms, who were sceptical on investing in Zimbabwe” he said.
“This will result in improved foreign direct investment, which will also probe domestic investment, as the industry will become a cash cow for investors.”
Chingaira said Zimbabwe was engaging in capital construction projects and this could spur financiers.
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“The country has already shown an appetite to improve the industry by embarking on other projects, which include the Hwange Power Station expansion and plans are underway to construct the new Parliament building, as the city of Harare expands,” he said.
“Local banks have also responded to the growth of the industry, as seen by banks like the Infrastructure Development Bank of Zimbabwe, National Building Society, CBZ, FBC and other property developers taking on housing projects, in a bid to ease the ballooning housing backlog in the country.”
In the Zimbabwe Infrastructure report by international research institute, Business Monitor International (BMI), released at the start of the month, Zimbabwe’s construction industry is expected to record minimal expansion over a 10-year forecast.
Between this year and 2026 expansion will be minimal due to fiscal constraints and an unattractive business environment, which limit funding flows into the sector.
BMI reckons Zimbabwe’s construction industry will remain highly risky for investors and will continue to remain one of the smallest construction markets globally.
In the 2017 budget, government allocated $188,5 million, inclusive of employment costs and operations, to the Infrastructure and utilities cluster.
CIFOZ is preparing for its annual congress to be held in Masvingo towards the end of next month, where construction players will seek to address issues surrounding future collaborative construction projects.