Players in the construction industry say the forecast of 50% activity by year end is now difficult to attain as the sector has been affected by the current liquidity crunch facing the country.
The construction sector has come under threat and is feeling the pinch of the current liquidity challenges facing the country, with players in the industry saying activity has slowed down.
Construction Industries Federation of Zimbabwe President, Mr Philip Chiyangwa says more could be done if government makes efforts to bring sanity into the financial services sector.
â€œThe effects are still continuing and we are saying let those who have the mandate to ensure the availability of cash act if we are to survive. The liquidity crunch has really affected the industry and we will not reach the targets,â€ Mr Chiyangwa said.
A contractor, Mr Daniel Garwe echoed Mr Chiyangwaâ€™s sentiments, saying some sectors of the construction industry have ground to a halt.
â€œThere is nothing significant happening. When we made the forecast, the economy was on a growth path but the liquidity challenges have turned this around,â€™ said Mr Garwe.
The construction industry, which is currently at 32% activity, had been on an upward growth in 2011 with stakeholders expressing optimism that real growth would be registered this year, owing to improved funding.
However, the current situation has negatively affected the growth of the industry which used to be a major source of employment in the past.
If operating at over 50% capacity, the industry has the potential to account for 20% of the countryâ€™s annual Gross Domestic Product.