Online Reporter
Tapiwanashe Mangwiro
Zimbabwe’s construction sector is displaying encouraging signs of stability and resilience, as sectoral inflation figures remain low even as it navigates global market fluctuations.
April 2025’s latest Civil Engineering Material Price Index (CEMPI) figures from the Zimbabwe National Statistics Agency (ZimStat) offer a nuanced picture, as domestic price pressures are moderating month-to-month.
Dollar-denominated materials are benefiting from mild deflation and the composite weighted index suggests manageable, balanced growth.
After a series of sharper increases early in 2025, local construction material prices are showing signs of cooling.
ZimStat reported that: “The month-on-month rate of change in April 2025 was 3,7 percent, shedding 1,5 percentage points on the March 2025 rate of 5,2 percent as measured by the all-items ZiG Civil Engineering Material Price Index (CEMPI).”
With diesel and cement driving most of the uptick, and non-contributors like water stops and sluice valves remaining stable, contractors can better anticipate and plan for these more moderate month-end cost adjustments.
On an annual basis, the local CEMPI rose by 77,0 percent in April 2025, a figure that might appear alarming at first glance but largely reflects the one-off currency devaluation of September 2024 rather than runaway inflation in construction inputs.
As ZimStat notes: “The year-on-year rate of change for the ZiG Civil Engineering Material Price Index (CEMPI) was 77,0 percent in April 2025.” Stripping out the base-year effect of the September devaluation, underlying price gains have been far less dramatic, signalling sustainable cost dynamics for domestic contractors moving forward.
For firms sourcing materials in US dollars, April delivered a welcome reprieve. ZimStat’s data shows: “The month-on-month rate of change in April 2025 was –1,2 percent, shedding 1,1 percentage points on the March 2025 rate of –0,1 percent.”
While cement and shutter boards saw modest gains, decreases in joint compound and deformed steel more than offset them, providing importers with some breathing room as international commodity markets stabilise.
On a year-on-year basis, the USD CEMPI was down 0,5 percent, illustrating gentle deflation in dollar terms and easing pressure on project budgets funded in foreign currency.
“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.
Bringing both currency measures together, the weighted index rose by a modest 0,5 percent month-to-month, down from March’s 1,5 percent. “Shedding 1,0 percentage points on the March 2025 rate,” according to ZimStat.
Diesel, cement and asbestos pipes supported this rise, while bitumen and river sand made minimal impact. Most importantly, the weighted CEMPI’s year-on-year gain of 19,0 percent demonstrates healthy, balanced growth that reflects both local market realities and international pricing trends.
On the civil engineering side, after a period of sharp cost pressures, April’s Civil Engineering Plant Price Index (CEPPI) data reveals moderating monthly increases in local currency terms, flat pricing in US dollars and a modest uptick in the composite weighted index, suggesting healthier dynamics for contractors and project planners.
ZimStat reported that: “The month-on-month rate of change in April 2025 was 3,2 percent, gaining 1,5 percentage points on 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 largely reflects higher demand and normalisation after subdued price movements earlier in the year, rather than runaway inflation.
On an annual basis, the local CEPPI shows a substantial year-on-year spike, “The year-on-year rate of change for the ZiG Civil Engineering Plant Price Index (CEPPI) was 165,2 percent in April 2025.” Much of this reflects the low base in April 2024 as well as the one-off currency devaluation in September 2024. When adjusting for those effects, underlying equipment costs have risen at a more sustainable pace, offering relief to domestic contractors navigating local-currency budgets.
For businesses sourcing plant and heavy machinery in US dollars, April delivered a rare period of price stability. ZimStat confirms that, “The month-on-month rate of change in April 2025 was 0,0 per cent, remained unchanged on the March 2025 rate of 0,0 percent.”
This flat movement offers importers predictable costs as global supply chains revert to steadier post-pandemic norms.
Year-on-year, the USD index ticked up by just 1,9 percent.
“The year-on-year rate of change for the USD Civil Engineering Plant Price Index (CEPPI) was 1,9 percent in April 2025,” the agency stated.
Such mild growth underscores the easing of commodity price spikes and favourable purchasing conditions in international markets.
The composite weighted index, which blends local and dollar measures, recorded, “The month-on-month rate of change in April 2025 was 0,3 percent, gaining 0,1 percentage points on the March 2025 rate of 0,2 percent.” ZimStat further noted that: “Excavators and Loaders contributed to the rise of the April 2025 month-on-month rate of change,” while a range of other components, including rollers, dozers, graders and hydraulics, had neutral effects on the monthly shift.
On a yearly comparison, the weighted index climbed a manageable 12,3 percent. That figure reflects a blend of currency-driven local inflation and stable dollar pricing, pointing to an overall environment of balanced cost pressures.
These figures underscore a constructive outlook for Zimbabwe’s civil engineering sector. Moderate monthly increases in local prices, once base-year anomalies are accounted for, paired with subdued dollar price movements, afford greater predictability for both public and private developers.
As the Government and international partners collaborate on key infrastructure projects, contractors can leverage these stable cost dynamics to secure financing, negotiate tenders and drive timely project completion.
With ZimStat’s regular updates serving as a transparent guide, stakeholders are well-positioned to capitalise on this period of relative price equilibrium.
As macroeconomic policies continue to focus on currency stability and streamlined import processes, the construction industry stands ready to build on this momentum, laying the groundwork for accelerated growth and long-term development across Zimbabwe.
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