Accelerated construction good for the economy

ZIMBABWE should accelerate the construction momentum as the viability of the sector is a key economic barometer that supports growth of other sectors and leads to job creation.

Bulawayo businessman and former Zimbabwe National Chamber of Commerce (ZNCC) president, Mr Obert Sibanda, said this during a Matabeleland Development Initiative (MDI) meeting in Bulawayo last Friday where he made a presentation on the “role of the construction industry in economic development”.

Zimbabwe National Chamber of Commerce (ZNCC)

He observed how the country has recently recorded a boom in housing development, in particular, with positive benefits to downstream industries and employment creation across the construction value chain.

“As players in the industry we have always argued that if you want to accelerate economic growth, you come up with a housing project. If we come up with a massive housing project in this economy, every sector of the economy stands to benefit,” he said.

“Employment will be created in servicing of stands, companies that mould bricks, produce cement and steel would create a thriving industry.

“Insurance sector would also want to insure houses that are built. The furniture sector also benefits as owners would want to furnish the property. So, the economy benefits a lot from the construction sector.”

Mr Sibanda said the construction sector was a barometer of the economy of any country and urged all stakeholders to invest more towards scaling up construction projects.

His sentiments come at a time when the Government is driving massive capital projects development across the country. These include roads rehabilitation, housing development, dam construction as well as schools and hospitals.

Minister Daniel Garwe

Recently, Housing and Social Amenities Minister, Daniel Garwe, revealed that cement manufacturers were struggling to cope with the pace of housing construction.

He said the spike in demand for cement is seen as a positive signal of economic growth and a confidence booster in the country.

“If you spot cranes high up in the skies, you will know that the economy is doing well. Most companies need good infrastructure such as roads, airports, communication facilities and railway networks,” said Mr Sibanda.

“We need to appreciate that if the economy is not doing well, the construction sector is the first to suffer and last to recover.”

In recent years, Zimbabwe has been experiencing rapid urbanisation and its population has also grown significantly, which augurs well for faster economic growth driven by the two built industries — real estate and construction.

The Government has a target to deliver 220 000 housing units by 2025 as prescribed under the National Development Strategy 1 (NDS1) aimed at contributing towards realising Vision 2030.

Delivering affordable and quality settlements in urban and rural areas is one of Government core targets to improve access to affordable and quality housing and social amenities under the economic blueprint.

Zimbabwe has a national housing backlog of around 1,5 million units and targets to deliver 1,2 units by 2030 and part of the vision is to change the face of Zimbabwe by building modern houses that are sustainable and environment friendly.-chroncif.ez