The Sunday News
NEW investments in the property sector remain anchored by people in the Diaspora, players in the sector have said, adding that big projects funded by Government have also contributed to keeping the sector afloat.
In an interview with Sunday Business, Udine Products chief executive officer Mr Crispen Mugova said the construction sector has been thriving as a result of most Diasporans investing in properties through buying houses, buying stands and building new structures as well as renovating and upgrading properties.
Udine Products manufactures construction material such as face bricks, blocks, gully surrounds, air vents, garden edges, interlock powers and kerbstones.
Mr Mugova said this development has managed to help the sector soldier on in spite of economic hardships being experienced in the country.
“The future of the industry is quite bright and promising as we are looking forward to a number of projects lined up by the Government. We have also seen an upsurge in property development especially from people living out of the country and this has kept the industry afloat,” said Mr Mugova.
Mr Mugova said what is also notable in the sector is that a number of financial institutions are now giving mortgages resulting in a lot of activity in the medium and high density suburbs.
These include banks like CABS, FBC, CBZ and microfinance companies like Construction Financial Services which are giving loans for construction concerns. The National Social Security Authority (NSSA) has also applied for a licence to operate a building society bank.
He said construction of the Plumtree-Mutare highway had also added more value to the sector with a number of local companies being sub-contracted to do some work on the roads.
“This has benefitted local companies and created employment last year. As a sector we are now looking forward to the Beitbridge-Chirundu dualisation project which we hope will add value to the industry,” said Mr Mugova.
According to players in the construction sector, other projects lined up for this year include upgrades of hospitals and technical colleges as well as maintenance of infrastructure that was built during the youth games in Bulawayo last year.
Madzimbabwe Asphalt managing director Mr Vengai Runyowa, however, said the beginning of the year has been subdued compared to previous years although there are many perceived projects that are awaiting funding.
Mr Runyowa said the road construction projects last year helped a number of local companies with Madzimbabwe Asphalt employing about 180 people for the projects.
“We are looking forward to other projects and this year our main hope is the Harare-Beitbridge Road as well as working with local authorities in rehabilitating roads. These projects help in employment creation although not to the levels that we would have desired,” said Mr Runyowa.
He said generally there is significant growth in the sector.
The industry has a potential of accounting for at least 20 percent of the country’s annual Gross Domestic Product which is a measurement of total value of goods and services produced yearly.
