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MASSIVE infrastructure projects being carried out by the Second Republic across various sectors have spurred local industry, which is reaping huge profits from increased Government contracts, the Confederation of Zimbabwe Industries (CZI) said on Friday.
Guided by economic blueprints including the National Development Strategy 1 (NDS1), Government has, since 2017, embarked on unprecedented infrastructure development in line with its aspirations to transform the country into an upper-middle-income economy by 2030.
In the transport sector, for example, the Harare-Masvingo-Beitbridge Highway, Beitbridge Border Post and Robert Gabriel Mugabe International Airport are being upgraded to modern standards, while massive dam projects, including the Gwayi-Shangani, Kunzvi and Semwa are also coming up.
Treasury has allocated $156,4 billion to support infrastructure projects this year alone.
A glance at the financial results of various local construction and material supplying firms reveals the positive financial impact this is having on their balance sheets.
For example, last week, cement manufacturer Pretoria Portland Cement reported a 25 percent increase in its annual local cement sales, attributing its good showing to growing demand driven by Government projects.
On the other hand, construction company Masimba Holdings reported that it had secured projects worth US$214 million last year, up from US$72 million the previous year.
“Government’s renewed interest in infrastructure development was the key driver of growth for the road and earthworks order book,” Masimba, one of the companies working on the Harare-Masvingo-Beitbridge road, said this week.
In an interview with New Ziana, CZI president Mr Kurai Matsheza said the infrastructure construction boom was good for local industry.
“We are excited. We are seeing fantastic (financial) results, and I am sure as the reporting season goes on, the numbers will be even more exciting,” he said.
“We know there has been quite some spend on roads, dam building and housing as well, so the companies we are talking about are suppliers to those specific sectors, so their revenues would obviously grow tremendously, but it is a good development. As a country, we need infrastructure.”
Mr Matsheza said downstream industries were also benefiting from the Government-led infrastructure development.
“When Masimba, for example, is building houses, Turnall, which is on the roofing side, will benefit, the guys on the timber side will also benefit, the guys on the piping side will also benefit and maybe even the workers working for those companies also benefit on the welfare side,” he said. – New Ziana
Online Reporter