THE Zimbabwe Building Contractors Association (ZBCA) has disclosed that contractors have secured 250 order books for various projects valued at approximately ZiG10 billion (US$376,6 million) for 2025, businessdigest has learned.
The construction industry plays a critical role in Zimbabwe’s economic development, addressing key infrastructure gaps, such as rehabilitation and construction of road networks, improvements in water and sanitation facilities, energy infrastructure upgrades, and tackling the housing deficit in urban areas.
“I would like to believe that contractors currently have a total of 250 order books for various projects across the country,” ZBCA Women’s Desk chairperson Portia Mariga told businessdigest.
“The total value of these projects is likely to stand at ZiG10 billion (US$376,6 million) for the year.
“However, the ZBCA has set a target value of ZiG20 billion (US$752,8 million) for order books for the year.”
She said with sufficient support and a stable economic environment, the association believed the industry could reach a potential value of ZiG50 billion (US$1,88 billion).
Despite this potential, local contractors face significant challenges, including a liquidity crisis, high inflation, volatile exchange rates, and an outdated regulatory framework.
“The liquidity crisis has severely impacted most contractors’ ability to source capital locally to deliver on projects. Many are struggling to access cash to fund their operations,” Mariga said.
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“Additionally, the government has been paying contractors in local currency, which has been affected by high inflation rates, resulting in significant losses for the contractors.”
She said the volatile Zimbabwe Gold (ZiG) currency had made it challenging for contractors to sustain their contracts.
“Many contracts are priced in US dollars, but payments are made in local currency, resulting in significant losses due to exchange rate fluctuations,” Mariga explained.
She noted that timely payments had also been a challenge, with many contractors experiencing delays of up to six months or more.
“The ZBCA estimates that the industry requires at least ZiG10 billion (US$376,6 million) in capital injection to revive the sector,” Mariga explained.
“To address this, the association suggests the government and financial institutions should provide affordable funding options, offer tax incentives to contractors, and implement regulatory reforms to attract investment and stimulate growth in the construction industry.”
Despite these challenges, the ZBCA remains optimistic about future prospects for the construction industry in Zimbabwe.
Infrastructure remains Zimbabwe’s largest capital cost, with Treasury, in 2021, revealing that a total of US$19,68 billion worth of investments were needed to tend to the country’s projects.
