Zimbabwe January 2007 |
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| Building Industry Collapse Imminent, (Zimbabwe Situation, 2007-01-25):-The construction industry, seen as the barometer useful in measuring how well an economy is doing, faces imminent collapse in Zimbabwe owing to the combination of brain drain and the dearth of new projects. Over the past eight years, the industry has shed thousands of jobs as part of desperate survival measures. Industry experts told The Property Gazette this week that the sector's resilience cannot endure the pain anymore and patience is wearing thin among the skilled workforce who have joined the great trek down south. A thriving construction industry in neighbouring South Africa is proving to be the biggest undoing for the local industry, which is experiencing massive brain drain as professionals stampede for jobs south of the Limpopo River. South African construction companies have embarked on a massive drive to recruit skilled personnel to meet their deadlines for World Cup 2010 related projects. South Africa is expecting R17 billion in new investments, which will lead to the creation of 123 000 new jobs in the construction sector. Last week, SABC News quoted Tendayi Chimuriwo, president of the Zimbabwe Construction Industry Council, saying soon there would be no construction industry to talk about because of the massive brain drain. "Companies will collapse because there will not be any manpower," Chimuriwo was quoted saying. Lorimak, a human resources consultancy firm said the economic meltdown in Zimbabwe in the last 10 years has led to the movement of millions of people in search of opportunities in richer countries. While the health and teaching professions have been the most affected, quantity surveyors, architects, engineers and artisans have joined the great trek. Analysts have blamed the biting economic recession on President Robert Mugabe (83)'s controversial policies. President Mugabe's government has denied ruining Zimbabwe's once thriving economy, heaping the blame on targeted sanctions slapped on the country's ruling elite. Real Estate Institute of Zimbabwe (REIZ) president Abraham Sadomba said construction projects are only undertaken in response to space demand or in anticipation of demand. "The dearth of new construction is due to a poor and deteriorating economic environment further impacting on rental levels. This trend can be reversed through addressing of the main economic fundamentals at the macro level," said Sadomba. "Existing rental levels provide no incentive to developers to invest in new buildings as returns are not attractive enough," added the REIZ president. There are now calls for government intervention to save the local industry. "We need to be compensated by the companies that are taking away professionals in hard currency, so that we have enough money to train others," says Chimuriwo. | |
South African Migration Project (SAMP) - Queen's University - http://www.queensu.ca/samp |