Online Reporter
Tapiwanashe Mangwiro
ZIMBABWE’S construction sector is showing promising signs of stability and resilience, with sectoral inflation figures remaining low despite ongoing global market fluctuations.
The latest Civil Engineering Material Price Index (CEMPI) figures for April 2025, released by the Zimbabwe National Statistics Agency (ZimStat), present a nuanced picture. Domestic price pressures are easing on a month-to-month basis, with dollar-denominated materials experiencing mild deflation. The composite weighted index indicates manageable, balanced growth.
Following a series of sharper increases earlier in 2025, local construction material prices are beginning to cool.
ZimStat reported:
“The month-on-month rate of change in April 2025 was 3,7 percent, shedding 1,5 percentage points from the March 2025 rate of 5,2 percent, as measured by the all-items ZiG Civil Engineering Material Price Index (CEMPI).”
Diesel and cement were the primary drivers of the increase, while items such as water stops and sluice valves remained stable, allowing contractors to better anticipate and plan for more moderate end-of-month cost adjustments.
On an annual basis, the local CEMPI rose by 77 percent in April 2025. While this figure may initially appear concerning, it largely reflects the one-off currency devaluation of September 2024 rather than sustained inflation in construction inputs.
As ZimStat noted: “The year-on-year rate of change for the ZiG Civil Engineering Material Price Index (CEMPI) was 77 percent in April 2025.”
When adjusted for the base-year effect of the devaluation, underlying price increases have been far more modest, indicating sustainable cost dynamics for domestic contractors going forward.
For firms sourcing materials in US dollars, April brought a welcome reprieve. According to ZimStat:
“The month-on-month rate of change in April 2025 was –1,2 percent, shedding 1,1 percentage points from the March 2025 rate of –0,1 percent.”
While cement and shutter boards recorded slight increases, these were more than offset by declines in joint compound and deformed steel, offering importers some relief as international commodity markets stabilise.
Year-on-year, the USD CEMPI declined by 0,5 percent, reflecting gentle deflation in dollar terms and easing pressure on foreign currency-funded project budgets.
“The year-on-year rate of change for the USD Civil Engineering Material Price Index (CEMPI) was –0,5 percent in April 2025,” the agency stated. Combining both currency measures, the weighted index rose by a modest 0,5 percent month-on-month, down from 1,5 percent in March.
“Shedding 1,0 percentage points from the March 2025 rate,” according to ZimStat.
Diesel, cement, and asbestos pipes contributed to this increase, while bitumen and river sand had minimal impact.
Most notably, the weighted CEMPI’s year-on-year rise of 19,0 percent reflects healthy, balanced growth aligned with both domestic market conditions and global pricing trends.
On the civil engineering front, following a period of sharp cost pressures, April’s Civil Engineering Plant Price Index (CEPPI) data shows moderating monthly increases in local currency terms, flat pricing in U.S. dollars, and a modest rise in the composite weighted index — suggesting improved conditions for contractors and project planners.
ZimStat reported: “The month-on-month rate of change in April 2025 was 3,2 percent, gaining 1,5 percentage points from the March 2025 rate of 1,7 percent. This means that prices, as measured by the all-items ZiG Civil Engineering Plant Price Index, increased by an average of 3,2 percent from March 2025 to April 2025.”
This acceleration is largely attributed to increased demand and a return to normal pricing patterns after subdued movements earlier in the year, rather than runaway inflation.
Annually, the local CEPPI recorded a significant increase.
“The year-on-year rate of change for the ZiG Civil Engineering Plant Price Index (CEPPI) was 165,2 percent in April 2025.”
This sharp rise reflects both the low base in April 2024 and the September 2024 currency devaluation. Adjusted for these factors, the underlying rise in equipment costs has been more measured, offering some relief to contractors working with local-currency budgets.
For businesses sourcing plant and heavy machinery in US dollars, April brought a rare period of price stability.
“The month-on-month rate of change in April 2025 was 0,0 percent, unchanged from the March 2025 rate of 0,0 percent,” ZimStat confirmed.
