ZW$172 billion additional funding for public sector investments

By Stanley James, Business Editor

Zimbabwe has shown commitment to continue with development and public sector investments after treasury set aside an additional ZW$172 billion for projects across the country.

The capital injections is in response to the realisation that initial funds for infrastructure development, capitalisation of public entities, devolution and capacitation of government units had depreciated in value due to inflationary pressures.

The development means that the budget for projects is now over ZW$500 billion for 2022, as government seeks to ensure accelerated infrastructure development in the country.

Players in the construction sector have welcomed the move and are upbeat about growth prospects.

Quantity surveyor and building contractor, Mrs Miriam Wenge said, “The construction industry value chain is capital-intensive. However, thanks to interventions by the Second Republic, the sector has experienced steady recovery from the decline in activity during the past few years. However, for this or the trend to be sustained, the need to revisit the current trends to sustaining viability of projects becomes critical especially taking into consideration the inflationary trends whereby most of our costs are rising in local currency terms. So, we are really grateful to Treasury for further allocations.”

“This industry has been yearning for growth such that government is now our biggest client to the extent that when the client comes up with good interventions, it means that we as an industry are also guaranteed of continued operations, given the fact that stability should however be restored so that we can also plan for the future and refocus on those areas in need of development across the country and ensure we balance our activities in terms of costs and returns or income earnings,” said CIFOZ chief executive officer, Mr Martin Chingaira.

Some of the units that are expected to benefit from the additional funding include the Hwange 7 and 8 expansion project, Harare-Masvingo-Beitbridge highway, various dam construction projects, and infrastructure for social services like health and education.

The Second Republic has embarked on several capital projects that are being linked to the National Development Strategy One, with the key mission being to attract long term investments into sectors that are key towards modernising the economy.