Online Reporter
Oliver Kazunga-Senior Business Reporter
THE Construction Industry Federation of Zimbabwe (CIFOZ) has commended the Public-Private Partnerships (PPPs) model saying the initiative promotes growth and development of the construction sector.
Under National Development Strategy 1 (NDS 1), the five-year economic development policy running through 2025, the Government has prioritised infrastructure development as one of the 14 critical pillars to drive the country towards the envisioned upper middle-income society by 2030.
Against this background, the Government has prioritised infrastructural development, calling on construction industry players to tap into opportunities under the PPPs arrangement, where various infrastructure projects have been initiated and developed.
Projects in which the PPPs model has been embraced include the US$88 million Mbudzi Interchange in Harare, US$121,7 million Gwayi-Shangani Dam project in Matabeleland North Province, as well as the US$300 million Beitbridge Border Post modernisation project, which has positioned the country well for the implementation of the One Stop Border Post concept with the neighboring South Africa.
In an interview, CIFOZ chief executive officer Mr Martin Chingaira said “We are commending the policy changes (to PPPs), where locals are now preferred for most of the projects.
“That has given our local companies in the built environment a new lease of life because we are participating in various infrastructural development projects through PPPs.”
He said the Government had also engaged the private sector, encouraging it to create more jobs using the PPPs and utilise the Zimbabwe Investment and Development Agency (ZIDA) website for priority projects.
“Any economy in the world can only do better when the private sector is participating in infrastructure development, unlike waiting for the Government to mobilise funding for the projects.
“We are saying to our members, gone are the days we waited for public tenders to be flighted for us to get jobs —but we need to engage for PPPs to create linkages that will create more money through profits, return on investments…”
“Whenever we talk about the construction industry or the built environment, first of all, we say we are the barometer of any economy — thus for the economy to grow we need roads, dams, housing, schools, universities, commercial buildings and so forth.
“This means that when the construction industry is activated, manufacturers of cement or bricks, and those who do timber and ceilings, among others across, the value chain will increase production,” said Mr Chingaira.
He said the construction industry federation would forge ahead with the PPPs model, adding that as long as the population of Zimbabwe keeps growing, more infrastructure like roads, social amenities, health and educational facilities would be required.
“Currently, we are talking about congestion on our roads just because we have not expanded or dualised most of our roads or constructed new roads.
“As long as there is population growth, it means we have to expand every facility we are using for us to be comfortable.
“So there is a lot of work — we need more roads, dams, schools, and industrial buildings and thus there is a lot of work and opportunities for the built environment,” said Mr Chingaira.
In this ZiG276,4 billion 2025 National Budget Statement presented last month, Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube said aside ZiG58,6 billion to shore up infrastructure development.
“Consistent with our aspirations for Vision 2030, resources will be availed towards funding the 2025 Infrastructure Investment Programme including intergovernmental fiscal transfers amounts to ZiG58,6 billion whose breakdown is as follow: budget revenues of ZiG28,4 billion, development partner support of ZiG1,2 billion, loan funding of ZiG1,8 billion, and statutory and other funding of ZiG27,2 billion,” he said.
Minister Ncube highlighted that on account of the continued infrastructure delivery needs and the limited funding capacity, amid the increased funding requirements to close the infrastructure gap, all available funding instruments for projects such as the budget, bond markets, bank loans, equity issuance and guarantees, should be leveraged.
