C.E Mambo 🇿🇼

🟥How much does the Government owe contractors? According to the Construction Industry Federation of Zimbabwe (CIFOZ), the Govt owes contractors about US$1.5 billion. At its recent industry congress, CIFOZ said: “Delayed payments and unsettled invoices, which sometimes stretch for close to a year, are driving local contractors into bankruptcy.” Late payments are damaging in an industry that needs large amounts of capital upfront: “Non-payment creates severe cash-flow crises that trigger debt, legal battles with suppliers and an inability to maintain heavy equipment.” Many peer economies can access low-cost, long-term infrastructure funding from institutions such as the AfDB or World Bank. Zimbabwe is shut out from these loans because of arrears. Government has had to use the budget to fund major projects such as roads and dams. This has stalled projects and piled up contractor bills. Masimba, a major Govt contractor, has scaled back its public-sector work in recent years. In 2024, 46% of Masimba’s order book was private projects. This year, it has a US$320 million order book, now made up mostly of private-sector contracts.