Online Reporter
Sikhulekelani Moyo [email protected]
The Construction Industry Federation of Zimbabwe (CIFOZ) has urged local contractors to form consortiums, joint ventures and strategic partnerships to position themselves for major infrastructure projects as Government increasingly turns to Public-Private Partnerships (PPPs) to bridge funding gaps.
Speaking on the sidelines of a CIFOZ business breakfast in Bulawayo on Friday, CIFOZ chief executive officer Mr Martin Chingaira said the construction industry needed to understand the new PPP framework approved by Cabinet and prepare to take advantage of emerging opportunities.
“We are aware that the Public-Private Partnerships (PPPs) guidelines have been approved by Cabinet, and for our members to understand these guidelines, we need to conscientise them so that they understand exactly what they are supposed to do in order for them to use the guidelines for procuring PPP projects,” he said.
Government recently approved comprehensive PPP guidelines, entitling the State to a minimum 30 percent shareholding in joint ventures while introducing clear value thresholds aimed at accelerating infrastructure development. The framework complements the Zimbabwe Investment and Development Agency (ZIDA) system, which seeks to streamline investor processes and project oversight.
The business breakfast also featured officials from the Procurement Regulatory Authority of Zimbabwe (PRAZ), who unpacked provisions of the PRAZ Act and the Electronic Government Procurement System (eGPS).
Mr Chingaira said improving contractors’ understanding of procurement regulations and digital systems would enhance efficiency and transparency in the sector.
“We are also here to conscientise them, to make sure they understand how to use the PRAZ Act and how to procure their projects with knowledge. We are also telling them how to use the eGPS so that they become efficient, as well as for them to be assured of transparency,” he said.
He said misinformation often created unnecessary frustrations within the industry.
“It is easy for people to say things are not going well when they are not conscientised,” he said.
With Government facing constrained fiscal space, Mr Chingaira said contractors must adapt to the new financing landscape by building capacity through collaboration.
“Government is trying its best to make sure it continues to encourage us to go for PPP projects on the basis that Government right now does not have money to advertise funded projects.
“Hence, we also need to be ready to make sure we put up consortiums, we put up joint ventures and partnerships to have the capacity to run these big projects.
“We don’t want a situation whereby we think that foreigners are there to take our projects because they have funding through their governments or because they are big. We can also be big by making sure we work together as consortiums to build capacity,” he said.
CIFOZ Matabeleland regional chairperson Mrs Bernice Richards said delayed payments remained one of the biggest challenges affecting contractors’ cash flow.
“The problem that we are facing with most of our contractors is the slow payments that they are receiving for works that they have done, which has put a hindrance on their cash flow,” she said.
Despite the challenges, Mrs Richards said Matabeleland had enormous potential to grow its construction industry through stronger collaboration.
“There is a lot of potential within the region and we have to do PPPs at the end of the day in order for this region to grow. There is a need for all of us to network more and see where and what we can do as the construction industry within the region,” she said.
Contractor Mr Mkhululi Nyathi said the seminar came at an opportune time as Matabeleland continues to host major infrastructure projects such as the Gwayi-Shangani Dam and the Bulawayo-Victoria Falls Road rehabilitation.
“There are major projects in the region that are happening as we speak. Yes, there are contractors from our region participating in those contracts, but we wish we could see more. As it stands right now, I think the percentage is quite negative considering that these projects are happening in our region,” he said.
CIFOZ Matabeleland regional secretary Ms Kuda Nyathi said Zimbabwean contractors had already demonstrated their capability on major national projects and should now capitalise on opportunities within the region.
“Back then, they used to complain that contracts were being taken by foreign companies, but we have seen our roads, especially the Bulawayo-Victoria Falls Road, being done by a local contractor. We saw the Harare-Beitbridge Road done by a local contractor, and we are happy with that.
“We want to keep ourselves abreast with the new system, take advantage of such good opportunities and grow as a region and ultimately as a country,” she said.
