Construction industry banks on mortgages

Published: 20 August 2013

Stakeholders in the construction industry are pinning their hopes on the availing of mortgage finance by financial institutions to boost their operational capacity to at least 60 percent.

The construction industry has been experiencing financial constraints over the previous months, hence low activity.

Hopes are high that the availing of mortgage finance will boost the industry in the next few months.

Chief quantity surveyor, Johnson Nyamhute says the industry is performing below the expected standards, owing to the unavailability of long term funding while the few projects available are being subcontracted to locals with foreign firms taking the bigger chunk.

"Issues to do with unavailability of money have been a major challenge though we have a number of projects that are taking place and we hope the sector will grow as expected," he said.

Another stakeholder in the construction industry, Mr Pearson Mhukayesango said the availability of funding from local financial institutions is critical in ensuring the construction of houses and other developmental projects.

He said little time is left for the sector to attain the envisaged gains before the end of the year, considering it is only a few months before the rain season.

"We have little time to cash in on some of the projects considering the coming rainy season but our hopes lie on the financial institutions' ability to avail mortgage finance for the growth of the industry," Mr Mhukayesango said.

The construction industry is operating at 30 percent capacity despite the mushrooming of some of the projects especially in Harare giving better prospects in the sector.

The construction and the rehabilitation of the major highways is also expected to boost the industry.
- zbc