adminTinashe Makichi Business Reporter
ZIMBABWE Build (Zim Build), a leading trade exhibition for infrastructure building and construction industry, is engaging private sector and multilateral financial institutions to raise US$5 billion required by the local construction industry to revive infrastructural projects that stalled in 2008 due to funding constraints, an official has said.
In an interview with The Herald Business, Zimbuild chairman Mr Martin Manuhwa said the industry is currently the best performing and profitable sector in the country, but funding has been a major challenge.
“From the research that we made we saw that the construction industry requires US$5 billion for it to operate viably. The money required will go a long way in providing loans and credit for construction companies that have projects that are still to be completed. “We are working hard towards engaging the private sector and international monetary institutions towards raising the required capital rather than putting the entire burden on the Treasury,” Mr Manuhwa said.
He said Zimbuild is currently in negotiations with Ministry of Finance and Economic Development over the finalisation of public private partnerships framework in the construction industry.
“As part of the negotiations, we expect the treasury to provide finance for some of the infrastructure that has been on a standstill and we are happy to say the Ministry of Finance and Economic Development is keen to provide the funding,” he said.
Mr Manuhwa added that the country’s road and rail network, which require US$3,8billion for rehabilitation, need private sector involvement considering that Zimbabwe has no capacity to fund the projects.
He said the World Bank report released last year exposed multiple shortcomings in Zimbabwe’s trade and facilitation system , which has pushed up prices of local products to uncompetitive levels on the international market. “Problems with the two key transport networks has not only presented problems for the companies that are still exporting, but it has also made local products uncompetitive on regional and international markets.
“Therefore private sector should be engaged to make sure transport infrastructure is rehabilitated so that goals set in the Zimbabwe Agenda for Sustainable Socio-economic Transformation are achieved,” Mr Manuhwa said.
The development of transport network will enable the Government to take immediate action to address trade obstacles, whose effects include marked slowdown in exports and a widening trade deficit, estimated at US$3,6 billion in 2012.
Acting secretary for policy formulation in the Office of the President and Cabinet Mr Evans Hove said for ZimAsset to achieve its goals the nation needs to have a vibrant construction industry.
“Sovereign Wealth Fund should be given priority to backstop and provide predictability and sustainability to Government innovative funding that will also transfer to infrastructural projects that are not yet completed.
“Construction companies need to collaborate with development partners on technical and financial assistance for them to remain competitive.”
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