The country’s ongoing infrastructure projects, both public and private, are a major reason for the construction industry’s optimism about growth in 2024.
The projects cover a wide range of industries, including manufacturing, energy, transportation, mining, and agriculture. However, the development of real estate, primarily residential and commercial buildings, is a major activity for the private sector and individual investors.
The Construction Industry Federation of Zimbabwe (Cifoz) stated in its quarterly update for the quarter ending December 31, 2023, that members should consistently interact with the Zimbabwe Investment and Development Agency via its website in order to secure priority projects under private-public partnerships. “The adoption of innovative sustainable smart building practices in Zimbabwe is a positive development, and the private sector’s and the diaspora’s ongoing contributions to the nation’s development are outstanding. According to Cifoz’s report for the fourth quarter of 2023, “the completion of several infrastructure projects will give impetus to sustainable development.”
It claimed that the extensive infrastructure development initiatives being carried out nationwide, such as the building of new power plants, dams, and road rehabilitation and modernization, will help to actually realize Vision 2030 and bring about a noticeable socioeconomic shift. The government has prioritized infrastructure development projects like road and dam construction and rehabilitation, irrigation rehabilitation, and housing programs because it believes that infrastructure is one of the main drivers of economic development.
Infrastructure development remains a key enabler of the Government’s vision of transforming Zimbabwe into an upper middle-income economy by 2030, which is anchored by the National Development Strategy 1 (NDS1), a five-year economic blueprint launched in 2021.
According to Cifoz, driven by the urge to encourage investment, the Government enacted laws that govern investors and investments.
It added that the Government also signed a number of international treaties that ensure and guarantee protection of investors and their investments.
“The investment route in Zimbabwe is straightforward and with the aid of a competent legal representative, the processes are even smoother and faster.
“Zimbabwe is open for investment and efforts are being made to align all the laws and processes to ease the doing of business in the country,” reads the report.
The Government has also been encouraging local firms to enter into joint ventures with foreign companies because the formation of joint ventures is a swift and cheap route to development.
Economist Dr Prosper Chitambara said good infrastructure is one of the key determinants of competitiveness, so every investor would want to invest in a country with a good infrastructure network.
“It goes without saying that the construction industry is a very important sector of the economy as it is a key component of our gross domestic product.“It employs complex linkages with various sectors of the national economy, both vertical and horizontal,” he said.
He added that in recent years, the construction industry has held steady amid a barrage of economic predictions.He noted that short- and long-term projects are still being executed, with construction firms proceeding with building and maintenance work, strictly adhering to guidelines on the employment of essential infrastructure workers.
Private players have also continued to participate in the Emergency Road Rehabilitation Programme Phase II, under which the Government placed priority on trunk and tertiary road projects in provinces and districts, as well as major arteries in urban areas.
