By Fanuel James

The Zimbabwe government has saved an estimated US$1.3 billion since it began prioritising local contractors for major infrastructure projects.

This was revealed by Transport and Infrastructural Development Deputy Minister Joshua Sacco.

He was speaking at a Construction Industry Federation of Zimbabwe (CIFOZ) AGM and Congress plenary session.

The deliberate policy to reserve major road projects for domestic firms has reportedly resulted in massive savings, skills transfer and growth of indigenous companies.

Government says engaging local companies instead of foreign contractors on major projects like the Harare-Beitbridge Highway has saved the country an estimated US$1,3 billion.

This has also transformed the construction industry.

The success stems from a conscious decision taken in 2019 when the Emergency Road Rehabilitation Programme (ERRP) was launched.

“I think in 2019 a conscious decision was made when the ERRP was launched that contractors for the emergency rehabilitation programme should be local contractors.

“And I think the house can bear testimony that this has brought out capacitation and proliferation of many local contractors,” Deputy Minister Sacco said.

According to Sacco the capacitation is visible across the country.

Where road construction was once dominated by foreign firms, Zimbabwean-owned companies are now leading works on highways, border posts and feeder roads.

Long Term Funding

To sustain the gains, Government has secured long-term funding.

Finance, Economic Development and Investment Promotion Minister Prof Mthuli Ncube confirmed that resources have been mobilised to complete outstanding projects.

“Already, US$100 million has been secured and is awaiting fulfilment of conditions precedent.

“The repayment of loans will be ring-fenced from collections from ZINARA (Zimbabwe National Road Administration),” said Prof Ncube.

The ring-fencing of ZINARA funds will ease legacy debts and funding constraints.

This will ensure local contractors are paid on time, a key challenge in the past.

With a National Budget allocation exceeding ZiG26 billion, a new US$400 million road infrastructure fund and a US$500 million kitty to reboot stalled developments in 2026, local contractors are set for even more work on the remaining 33km of the Harare-Beitbridge Road, Harare-Chirundu and Bulawayo-Victoria Falls highways.

Industry executives say the policy has not only saved foreign currency but created jobs, built local expertise and given councils confidence to invest in equipment.