Construction industry feels the pinch

funding for some of the projects.
“The interest rates on loans by banks are punitive (up to 30 percent) and the loan tenure is low, that is, 90 days,” he said.
Mr Garwe also lamented the use of antiquated machinery by some construction firms.
“Additionally, some of the challenges relate to a lack of equipment. Some of the equipment in use at the moment is obsolete
“Again, reasons are mainly attributed to lack of access to finance.”
The lack of funding has affected private construction projects, but this has also affected Government projects to some extent.
The Government has had major projects throughout the country but these have stalled due to lack of finances. Some of these State infrastructure projects include the construction of district and provincial registries throughout the country, the Buffalo Range Airport and the Victoria Falls Airport among others.
The former Cifoz boss also expressed concern at the domination of the market by foreign firms at the expense of the locals, adding that Government needs to prioritise indigenous firms in the award of contracts.
“As an industry we are failing to buy new equipment because we do not have the money and we cannot compete with foreign companies for tenders because they have the money and we do not,” he said.
To this extent, Cifoz has since appealed to the Government to put in place laws to  regulate the awarding of tenders to contractors.
Added Mr Garwe: “The Government should put laws that favour local contractors. They should put in place a preference for local players like, for instance, what they do in South Africa where they have the BEE in place that favours their local players in every industry.
“Cifoz has tried lobbying Government but the challenges are not being addressed.”
The local construction industry previously used to contribute to about 20 percent of employment but now is only contributing 5 percent as a result of the challenges it is facing.
The sector is the third biggest employer, with the mining sector of late creating the most significant growth opportunities.