By Own Correspondent

Zimbabwe’s construction industry is facing a dire crisis, with widespread job losses threatening its survival and long-term viability.

According to the Construction Industry Federation of Zimbabwe (CIFOZ), the sector is under siege from a combination of economic instability, policy failures, and an exodus of skilled labour, all of which are contributing to a rapid decline in employment and industry capacity.

Speaking at the CIFOZ Congress in Masvingo, immediate past president Ephraim Gwindingwi painted a grim picture of the construction sector, emphasizing the severe toll that economic volatility is having on local jobs.

“The challenges facing our construction industry are not just financial—they’re human. Workers are losing their jobs as companies are forced to scale back or halt projects due to inflation, currency fluctuations, and rising costs,” Gwindingwi said. “When project financing becomes uncertain, and costs spiral out of control, it’s the workers who bear the brunt.”

The collapse of financing options is a key contributor to this employment crisis. Hyperinflation and volatile exchange rates have made banks increasingly reluctant to lend to local construction firms, while private investors are demanding unsustainable risk premiums. As a result, many projects are delayed or canceled altogether, leaving workers without pay and companies unable to meet payroll.

"The constant erosion of project budgets due to currency swings and rising material costs leaves contractors with no choice but to lay off staff or cut back on their operations," Gwindingwi explained. "It's a devastating cycle."

The impact of these financial pressures is exacerbated by chronic delays in government payments. Many construction companies rely heavily on state contracts, but late disbursements have become the norm.

“When government payments are delayed, construction firms struggle to pay their workers, suppliers, and service providers. For companies already operating on razor-thin margins, this is a death sentence,” Gwindingwi said.

Workers who depend on these payments are left in limbo, and many are being forced to seek employment elsewhere, further contributing to the sector’s declining workforce. But it's not just financial hurdles that are driving job losses. Bureaucratic red tape is another major obstacle. Obtaining permits, securing approvals, and navigating Zimbabwe's complex regulatory environment has become a months-long ordeal. This not only slows down projects but also discourages new investment, which could create additional employment opportunities.

“Our regulatory system is strangling innovation and progress. Contractors can’t plan ahead, and it’s leading to more delays, more job losses, and fewer opportunities for our workers,” Gwindingwi said.

The situation is worsened by the increasing dominance of foreign contractors in large-scale infrastructure projects. High-profile projects, including dams, highways, and energy facilities, are being awarded to international firms rather than local contractors.

"Foreign companies are taking the lion's share of major projects, which leaves local firms struggling to stay afloat. Not only does this undermine the capacity of Zimbabwean companies, but it also directly threatens the jobs of local workers," Gwindingwi argued.

Perhaps the most troubling trend is the mass exodus of skilled labor from the country. Engineers, artisans, project managers, and technicians are flocking to South Africa, the Gulf States, and Europe in search of better opportunities. This “brain drain” is having a devastating impact on the construction industry’s ability to execute projects and train the next generation of professionals. “The loss of our most skilled workers is catastrophic. It’s not just about losing talent; it’s about the future of the industry. As more professionals leave, fewer remain to train apprentices, and our workforce becomes more and more depleted,” Gwindingwi lamented.