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Natasha Chamba, Business Reporter
THE construction sector has welcomed the $50 million finance facility set aside by the Reserve Bank of Zimbabwe (RBZ) to support their operations.

Apex bank Governor Dr John Mangudya announced in his mid-term monetary policy statement on Monday that funding support was being expanded to include the construction sector, which is one of the key economic pillars.

“The Reserve Bank has expanded the productive sector facilities to include the establishment of a $50 million construction finance facility for retooling and working capital requirements for the construction industry in line with the growing economy,” said Dr Mangudya.

“This facility like all other facilities shall be disbursed through normal banking channels with an inclusive rate of 10 percent.”

In an interview yesterday, businessman and Zimbabwe Building Contractors’ Association chairman, Mr Obert Sibanda, said the introduction of the facility was a welcome development.

“Government should be surely applauded for its efforts to better the economy through the presented construction facility. The development is welcomed because as the construction sector we have not had a facility like that,” he said.

Mr Sibanda said the $50 million package shows that the Government appreciates the construction sector and the value they add to the economy.

“Government has shown it wants to drive the economy forward as it has shown an initiative to boost the economic sector, which is a sector that has been making strides to develop the economy,” he said.

According to the Infrastructure Development Bank of Zimbabwe (IDBZ), the construction industry is projected to grow at a consistent rate of four percent from this year to 2026.

Mr Sibanda also said that the facility would have downstream benefits to the economy and should be embraced by all relevant stakeholders.

“The benefits might not be evident now but will surely manifest in the future and now the expectation is that the downstream benefits will outweigh the downstream costs,” he said.

Mr Sibanda, however, felt the money might not be enough to meet the sector’s needs. He suggested that measures be put in place to ensure adequate use of the resource and curb its abuse.

“The money that has been presented might not be enough for the construction sector as a whole. Government must also ensure that the people who are supposed to benefit from the facility do so and not let corrupt individuals take advantage of this noble initiative,” he said. — @queentauruszw