COMMENT: Use the huge profits to fund retooling and expansion

The Chronicle

LOCAL industry says it is excited by the massive infrastructure projects being implemented by Government across various sectors of the economy which has seen local companies reaping huge profits from Government contracts.

Treasury has allocated ZW$156,4 billion to support infrastructure projects this year alone.

Among the major projects being undertaken are the construction of the Harare-Masvingo-Beitbridge Highway, the modernisation of the Beitbridge Border Post, upgrading of Robert Gabriel Mugabe International Airport, the construction of Lake Gwayi-Shangani and Kunzvi Dam among others.

Most projects are being implemented by local companies which are also sourcing most of the building materials locally.

The Confederation of Zimbabwe Industries (CZI) says it is excited by the construction boom which has seen local companies reaping huge profits.

It says a glance at the financial results of many local construction and material supplying firms reveals the positive financial impact of the Government projects on their balance sheets.

“We are excited.

We are seeing fantastic financial results, and I am sure as the reporting season progresses, the figures will even be more exciting,” said CZI president Mr Kurai Matsheza.

He said Government is spending big on roads, dams, housing and other infrastructure projects.

Some companies are undertaking these projects while others are supplying the required building materials.

Local companies have demonstrated that they have the capacity to undertake most of the major infrastructure projects and are being paid in local currency thereby saving the country the much-needed foreign currency.

Vice-President Dr Constantino Chiwenga has said the continued imposition of illegal sanctions should not stop Zimbabwe’s economic transformation.

He said the nation cannot continue to mourn about sanctions but should instead work on robust strategies to grow the economy while countering the impact of the illegal sanctions.

The Second Republic has gone out of its way to engage foes and friends internationally and for reasons best known to themselves, some countries have chosen to maintain the illegal sanctions.

The illegal sanctions should not be allowed to derail the country’s vision to attain an upper middle-income economy by 2030.

VP Chiwenga has said the nation should build robust internal capacities to create wealth and expand job opportunities for its citizens.

The Government has already taken the lead through implementing infrastructure projects across the country.

The CZI has said it is reaping huge profits from the massive infrastructure projects being implemented by Government and it is our fervent hope that the companies are using these profits to retool, expand capacity utilisation and also invest in new ventures.

The strong and vibrant innovation ecosystems being spearheaded by institutions of higher learning should assist industry to keep abreast with emerging new skills and technologies to counter the illegal sanctions.

Article Source: The Chronicle

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