The construction industry in Zimbabwe is anticipated to maintain its upward growth trajectory beyond 2027, supported by substantial government-funded infrastructure projects. Key initiatives such as dam construction, road rehabilitation, and the development of a new city in Mt Hampden are projected to anchor this sustained growth, highlighting the government’s commitment to economic development amid climate change challenges.
According to a report by Morgan & Co, Zimbabwe’s construction industry is identified as one of the fastest-growing sectors in the economy, with an optimistic outlook for continued robust growth over the next three years. The report emphasizes that ongoing and planned key infrastructure projects will be driving forces behind this growth, with the potential to create jobs, stimulate related industries, and foster overall economic development.
Economist Mrs. Gladys Shumbambiri-Mutsopotsi attributes the sector’s expansion to the government’s ambitious dam and road construction projects, which aim to address water resource challenges and support agricultural and industrial activities, ultimately fostering resilience and sustainable development in the face of climate change.
Significant investments in road infrastructure, including major road expansions and dualization projects, demonstrate the government’s commitment to improving transportation networks. Notable projects such as the Harare-Chirundu and Harare-Nyamapanda highways, as well as the completion of road links like Plumtree-Mutare via Bulawayo and Harare, are expected to enhance connectivity, reduce travel times, lower transportation costs, stimulate economic activities, and attract investment.
Furthermore, the construction of a new city in Mt Hampden represents a transformative infrastructure development aimed at decongesting the capital city, Harare. This ambitious project involves local construction firms and is designed to create a modern and smart urban center equipped with state-of-the-art facilities, setting a new standard for urban development in Zimbabwe.
Industry analysts, including Ms. Sharon Mahufe, recognize the strategic investments being made in critical infrastructure as driving factors behind the ongoing construction boom in Zimbabwe. The construction sector’s sustained growth is expected to have a positive impact on the economy, contributing to job creation, enhanced connectivity, and improved urban development.
However, within the construction sector, there are nuanced dynamics at play. While infrastructure projects are thriving, there are concerns about a potential slowdown in the residential property market. Analyst Mr. Amon Manguru highlighted that the uptake of new residential spaces is slowing due to high pricing. He emphasized that the challenge lies in the lack of housing schemes catering to the lower-middle-income to upper-middle-income segments of the economy. Addressing this gap with well-structured schemes could reinvigorate the residential construction sector and meet the real demand from a substantial portion of the population.
Conversely, Mr. Manguru sees a promising future for the development of proper shopping malls outside Harare. Secondary cities and towns such as Mutare, Victoria Falls, Kadoma, Bulawayo, Chinhoyi, and Marondera are emerging as focal points for retail expansion, driven by growing urban populations and rising disposable incomes. The establishment of new malls in these regions is expected to cater to this demand, providing residents with enhanced retail experiences and contributing to local economic growth.
Overall, while challenges remain in segments of the residential property market, other areas such as retail development in secondary cities show significant promise. With continued investment and strategic planning, the construction sector is expected to remain a key driver of economic growth in Zimbabwe through 2027 and beyond.
Source: https://www.sundaymail.co.zw/construction-sector-boom-to-go-beyond-2027
