The construction industry was in a downward spiral. Inflationary pressures and lack of investment meant that the industry had no projects on its books. The global pandemic put further pressure on the sector as Zimbabwe had to go on lockdown.

The collapse of the Zimbabwean currency was one of the biggest hindrances to the industry, as controlling the cost projections became difficult. But in recent years, the construction industry has shown strength. The strong growth comes from government infrastructure spending, mining investments, and private homes.

Locally listed companies have benefited from the construction resurgence. Pretoria Portland Company (PPC) reported an increase of 25% in local cement sales. Masimba Holdings, a construction company, reported revenue of $214 million in 2021; the previous year, it only made $72 million. Turnall, a local manufacturer of roofing sheets, pipes, and other construction materials, is building a new Glass Reinforced Plastic (GRP) plant to meet rising demand.

Government Infrastructure Spend

The government has committed funds to upgrade the Harare-Masvingo-Beitbridge Highway, Beitbridge Border Post, and Robert Gabrial Mugabe International Airport to international standards. Treasury said it would spend around ZW $156 billion (approximately $1 billion in USD, according to the official rate) on infrastructure in 2022.

Zimbabweans Abroad Are Building Their Homes Locally

Another reason for the strength in the construction industry is remittances from Zimbabweans abroad. Zimbabwe has a large population living abroad in countries like South Africa, the UK, and Australia. Typically, they make yearly trips to Zimbabwe to visit family and friends and get a taste of home.

But with the pandemic lockdowns, many Zimbabweans were forced to stay away. When the pandemic took away the need to make the expensive trip home, many Zimbabweans abroad found themselves with extra money in their pockets.

Among many things, the savings are pouring into private property. Zimbabweans abroad are using their savings to renovate their homes and build new ones.

Mining Companies and the Construction Industry Benefiting from High Commodity Prices

One of the many effects of the pandemic is the rise in commodity prices. Government stimulus programs and increased social grants reduced the pandemic's negative impact on personal incomes. While many expected spending to decrease, it actually increased.

The increased spending, coupled with the shut down of many industries, resulted in supply constraints. Commodity prices rose, including those mined in Zimbabwe.

Zimbabwean mining houses are also expanding their operations with the boon in ore prices. The expenditure has fed into the construction industry from new structures and homes for employees.

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