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US$250 million as long-term funding from local financial institutions for the construction industry.
Cifoz’s financial partners include CBZ Bank, BancABC, Infrastructure Development Bank of Zimbabwe, Interfin Bank, Kingdom Bank and Premier Bank.
The funds are a critical element in the resuscitation of the construction industry, which has suffered from a decade of economic challenges, especially in respect of constrained liquidity. The construction industry is typically capital-intensive.
Speaking at the launch of the initiative recently, Cifoz president Mr Philip Chiyangwa said the funds would largely be used by Cifoz membership for project financing and the development of infrastructure.
The US$250 million capital-raising initiative is in addition to the US$80 million that the body obtained last year.
“Although our members are yet to exhaust the US$80 million, we are already mobilising an additional US$250 million and we are urging our members to apply for the funds,” he said.
Cifoz’s membership consists of the Zimbabwe Institution of Engineers, Real Estate Institute of Zimbabwe, the Zimbabwe Institute of Quantity Surveyors, Zimbabwe Institute of Consulting Engineers and the Institute of Architects of Zimbabwe.
Anticipated high growth in Zimbabwe’s construction industry in the outlook period could present a boon for the range of construction firms, in view of the extensive number of private construction projects and national development programmes that have been lined up. Some of the proposed projects for this year include Zimbabwe Platinum Holdings’ Ngezi Phase 2 project, expansion developments at Unki, the Mimosa Phase 6 expansion programme and developments at Murowa.
Also significant is the dualisation of the Beitbridge-Chirundu road, the development of the Kunzvi and Muchavezi dams and open-cast mining in Kadoma by RioZim, to mention a few.
At its peak the country’s construction sector employed more than 35 000 people but official statistics show that the figure has dropped to just over 3 000 in 2009.