adminBrighton Gumbo Business Reporter
THE Zimbabwe Building Contractors’ Association says capacity utilisation in the construction industry this year remained depressed at below 30 percent due to the prevailing economic climate.
In an interview, the association president Obert Sibanda said there was not much construction activity during the year as the country continued to experience economic slowdown.
“In 2015, the construction industry has been operating below 30 percent capacity utilisation as there was limited uptake of construction projects by both the government and the private sector.
“By and large, this is due to liquidity challenges being experienced in the economy,” said Sibanda.
As a result of a tight liquidity situation in the economy, Sibanda said major construction projects were being suspended.
“There hasn’t been much involvement of local contractors in the implementation of national projects whose tenders have been awarded to foreign firms.
“Ultimately, foreign contractors were seen enjoying at the expense of local contractors.”
He said the construction industry continues to lobby the government to come up with a law that enforces involvement of local contractors in the implementation of national projects whose tenders would have been awarded to foreign firms.
“We still feel that there’s minimal involvement of local players in major national construction projects being undertaken by foreign contractors. Thus, it’s our wish as a sector to see the government coming up with a law that enforces local involvement,” he said.
In Zimbabwe, Sibanda noted that it had become the norm that the construction sector was the first to suffer during lean times, and last to recover.
He said in 2016 there were no clear indications of concrete change but looks forward to a number of joint ventures waiting to be sealed with foreign investors.
He said there is need for the industry to pull in one direction and help the country grow.
Of late, concerns have been raised that Chinese firms were pushing out of business their local counterparts.
In 2014, the Construction Industry Federation of Zimbabwe said lack of huge capital inflows and major national development projects were some of the factors cited for poor performance.
At its peak, more than 35,000 people were employed in the construction industry but the figure dropped to slightly above 3,000 in 2009.
Online Reporter