adminNelson Gahadza Business Correspondent
The construction industry is expected to miss its projected 11 percent growth in 2014 amid calls for a Construction Industry legislation which aims to improve the sector’s operating space, an official has said. In an interview, Construction Industry Federation of Zimbabwe (Cifoz) president Gift Mpofu said the construction sector should be a regulated industry to enhance performance.
“The sector is currently depressed around 20 or 30 percent and at this rate we are likely to miss what was projected for the sector,” he said.
Mr Mpofu said the current economic state is affecting mostly local construction companies who are losing business to foreign companies. Mpofu said in the current scenario characterised by slow business activity and depressed capacity utilisation, a number of local construction companies will falter along the way.
He said foreign companies are awarded contracts with their partners while quasi government institutions are awarding the contracts to foreigners in unclear circumstances.
Mpofu said lack of huge capital inflows and major national development projects are some of the constraints cited by the stakeholders in the construction industry expected in the mid and long term period to negatively impact on the performance of the sector.
Government initiates 60 percent of the projects in the construction sector.
Online Reporter