Construction sector on the rebound

Construction activity is often a useful barometer for underlying business activity in any country’s economy.
Challenges related to critical shortage of inputs such as cement and bricks, together with undercapitalisation of major construction companies and liquidity constraints, all served to limit the sector’s capacity to emerge as one of the top contributors to the country’s Gross Domestic Product (GDP).
However, with sudden interest from investors shifting to the sector, the gradual improvement in investment in the production of key building materials cement and bricks, the future of the sector looks   bright.
Infrastructure development has been a key target for various economic sectors, which implies a surge in construction projects.
The Government availed a US$25 million facility through the Infrastructure Development Bank of Zimbabwe for housing projects in various local authorities, a development that saw most construction companies finding work.
Some of the housing projects include the Willowvale Flats, Sunway City, Dzivarasekwa and Marimba in Harare, Lower Paradise in Marondera and Parklands in Bulawayo.
The Construction Federation of Zimbabwe recently expressed optimism in the growth of the sector.
Cifoz president Mr Philip Chiyangwa said 2011 had its share of challenges for the industry among them shortages of funds, competition from foreigners, ever increasing utility costs and wages.
“On a positive note last year was more of a success as most of our members were kept busy throughout the year.
“We hope the trend will improve in 2012 and beyond,” he said.
Cement manufacturing companies have continued to increase their production capacity in a bid to meet demand for the product.
The country’s economy is expected to grow by 9,4 percent in 2012 as projected in the 2012 National Budget.
Some observers have, however, criticised the growth target of 9,4 percent as generously optimistic given the current liquidity constraints in the economy. — New Ziana