Cash-rich National Social Security Authority (NSSA) says local contractors have to reform to regain competitiveness as the sector’s prices are higher than those of its regional peers A statutory body established in terms of NSSA Act of 1989 to provide social security, the authority is the largest depository of savings in Zimbabwe, with an investment portfolio of about ZWL$30.5bn Of this, about ZWL$8bn is in the real estate sector across the country NSSA chief property investment officer, Francis Nyambiri, said the pay-as-you -go pension scheme has also lined up a number of infrastructure development projects across the country, which have the potential to unlock opportunities in the construction sector
However, the prices obtaining locally are expensive, Nyambiri said “We have lots of projects across the country in which we have engaged local contractors but, we have paid some school fees for that We are concerned when the (construction) sector becomes more expensive Zimbabwe contractors have become more expensive than most players in the region
So, if you can reduce the cost of construction, it will be possible for NSSA to engage more local contractors Be creative so that we can stretch the dollar that we have,” he said It has not been rosy for Zimbabwe’s construction industry in the past few years as the sector faced a myriad of challenges related to the poor state of the country’s economy The industry has also been struggling to contain the influx of foreigners into the country’s construction industry
They have been particularly unhappy with the Asians, especially the Chinese, who they said were having a field day due to lack of protection of the local construction industry This, they said, has resulted in local construction companies retrenching, downsizing operations or collapsing Since 2009, when Zimbabwe adopted the multi-currency regime to escape hyperinflationary pressures, the government through the State Procurement Board, which was replaced by the Procurement Regulatory Authority of Zimbabwe, has been awarding government tenders to foreigners, especially the Chinese Source: Business Times
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Source: Businesstimes
