Construction sector holds indaba in Kadoma

via Construction sector holds indaba in Kadoma – NewsDay November 4, 2015

ZIMBABWE’S construction sector, currently reeling from severe effects of the prevailing liquidity crunch, is having an indaba in Kadoma to deliberate on how the industry can turn around the economy through infrastructural development.

BY MTHANDAZO NYONI

The indaba, which starts today, ends tomorrow.

“We are having an indaba as the construction sector and the main thrust is to deliberate on how we can revive the economy through infrastructural development,” Zimbabwe Building Contractors’ Association president Obert Sibanda told NewsDay.
Sibanda said the meeting would be attended by industry and government officials including Local Government minister Saviour Kasukuwere.

“We are also expecting to have officials from the education, farming and banking fraternity,” he said.

Recently, Sibanda revealed that the sector was reeling from severe effects of the prevailing liquidity crunch with major projects being suspended over lack of funding resulting in diminishing revenues.

Local contractors have been driven out of business by Chinese firms that are behind a number of construction projects currently ongoing in the country.

The industry continues to reel under critical funding constraints as local banks impose stringent borrowing conditions against the background of liquidity challenges.

Last year, the Construction Industry Federation of Zimbabwe (Cifoz) revealed that the industry was operating at about 20% to 30% capacity.

Cifoz said lack of government and private sector contracts and the liquidity challenges were the major factors contributing to low capacity utilisation.

It also revealed that lack of huge capital inflows and major national development projects were some of the constraints cited by stakeholders in the construction industry.

Zimbabwe has a housing backlog of over 1 million units.

Zimbabwe’s economy is in distress with Finance minister Patrick Chinamasa in July lowering economic growth projections to 1,5% from the initial 3,2%, citing drought which lowered agriculture output by 8,2%.