phillip-chiyangwa.jpgConstruction Industry Federation of Zimbabwe (CIFoZ) is projecting at least 10% growth in 2011 at the back of improved investment in the sector as well as a conducive macro economic environment.

 

The construction industry which in 2010 contributed only 0.6% to the Gross Domestic Product (GDP) and is slowly emerging from years of viability constraints and subdued business, is envisaged to play a critical role in the recovery of the economy by creating employment opportunities.

 

CIFoZ President, Mr Philip Chiyangwa, expressed optimism that the sector has the capacity to register double digit growth rate next year given the commitment by financial institutions to support the industry and the growth in tenders from sectors such as transport and mining.

 

CIFoZ also says loans under the US$80 million long-term funding deal entered with 10 local financial institutions to revive the construction sector will be accessible from January 2011.construction.jpg

 

The local construction industry, which used to employ over 30 000 in 1996 has witnessed a fare share of challenges owing to lack of funding and fewer projects from both the private sector as well as the government.

 

Capital constraints have over the past few years restricted government to embark on major infrastructure development projects, a situation which adversely affected the operations of the construction industry, given the fact that Government used to account for close to 60% of all construction activities.