Zimbabwe’s Construction Crisis, who will Pick Up The Insurance Tab

By Shingirai Vambe

The construction industry, a vital sector in Zimbabwe’s economy, is grappling with significant challenges that threaten its stability and growth. Despite accounting for 10% of the country’s Gross Domestic Product (GDP), the industry is beset by economic woes, brain drain, and lack of safety nets. This article examines the crisis facing Zimbabwe’s construction industry, its causes, consequences, and potential solutions.

Hauna, Mutasa District, Manicaland, is home to Sekuru Francis Kalumu, whose life was forever changed by a workplace accident. Wheelchair-bound and struggling to survive on $15/month, Kalumu’s story is a heartbreaking testament to the industry’s failures.

“I was a breadwinner, a working husband,” Kalumu shared, his voice laced with despair. “Now, I’m a burden.”

Zimbabwe’s economic situation has driven skilled workers abroad, leaving women to bear the welfare burden. Laborers toil in poverty, facing permanent injuries and meager pensions. The introduction of Occupational Safety and Health Administration (OSHA) aimed to mitigate risks, but compliance remains elusive.

Contractors paint a dire picture: paltry salaries, no insurance, and pension coverage only for full-time employees. Companies prioritize cutting costs, leaving workers vulnerable.

“The bigger chunk of project funds goes to manufacturers and suppliers,” a contractor revealed. “We’re left with scraps.”

Zimbabwe’s construction industry is caught between old and new. Dilapidated infrastructure is replaced with sleek, modern designs, but at what cost?

Smart cities initiatives, like Zim Cyber City, promise employment and amenities but cater to the elite. “Smart cities come with a cost,” CEO Tendai Hlupo-Mamvura acknowledged.

Old Mutual Zimbabwe CEO Samuel Matsekete warns of informalization’s devastating impact on banking and insurance. “We’re missing opportunities to finance big projects due to lack of savings.”

IPEC Officer Polite Chidumwa echoes this concern: “Long-term savings are critical. Personal pension plans have declined to zero.”

Professor Makochekanwa attributes the crisis to inconsistent policy frameworks and legislation. “We must restore confidence and savings culture.”

The human cost is stark. Mourners in Rusape recently protested outside an Econet shop after Ecosure refused to cover a client’s funeral costs due to a $4 unpaid premium.

Zimbabwe’s construction industry cries out for change. Will policymakers heed the call?

Lost confidence, lost value and lack of innovation, slowly destroying the insurance and pensions sector