Stakeholders in the construction industry say the sector is on the road to recovery despite funding constraints that are hindering the development of new projects in the country.The construction industry which has in the past decade been affected by sanctions induced financial problems says it is poised for a rebound due to the prevailing stable macro- economic conditions.
According to aÂ 2011 review of the industry compiled by theÂ ConstructionÂ IndustryÂ Federation of Zimbabwe (CIFOZ), several projects that had been put on hold, have been revived following the inception of the multiple currency system three years ago.
CIFOZ noted that the sectors capacity utilisation has also increased to 33% this year from 22% last year as government which accounts for key construction projects is injecting funds for the development of various sites across the country.
However, it has emerged that the industry is reeling under acute funding shortages as local banks continue to impose stringent borrowing conditions at short term durations.
Furthermore, construction companies are struggling to re-attract skilled labour mainly engineers who left the country for greener pastures in the past decade.
The industry has a potential of accounting for at least 20% of the countryâ€™s annual Gross Domestic Product which is a measurement of total value of goods and services produced yearly.