HARARE – The Zimbabwean government is facing significant challenges in settling outstanding payments to infrastructure contractors, which have ballooned to an estimated US$1.2 billion.
Speaking in Parliament on Wednesday, Finance Minister Mthuli Ncube acknowledged the payment delays to Members of Parliament, attributing them to “cash constraints.”
The delays are having a tangible impact on public infrastructure projects, including critical road construction, leading to stalled progress.
According to NewZWire, Masimba Holdings, a major government contractor, recently highlighted the “liquidity challenges” hindering project execution despite a strong order book.
The company further warned that if these financial constraints persist, Zimbabwe’s economic growth could face a “shift toward contraction in the short term.”
Ncube addressed concerns raised about the slow pace of payments. He stated that the Treasury is actively “working out payment plans for contractors” and emphasized the government’s commitment to settling the arrears.
The Minister cited recent payments, including approximately US$30 million allocated for the Harare-Masvingo-Beitbridge Road and Greater Harare roads, and US$35.2 million towards dam construction projects.
He also mentioned settling around US$17 million in arrears in other unspecified sectors.
Ncube highlighted the government’s role in the growth of local construction companies since the advent of the “Second Republic” seven years ago, suggesting a strong partnership.
“If you go back, let us say seven years ago, when we came in as the Second Republic, most of these contractors did not exist. They almost were created from scratch and capacitated and empowered through these Government infrastructure programmes.
“So, they too are grateful and they work very well with Government but of course, if you are in arrears, you are in arrears. Those arrears ought to be settled.
“We have been settling these arrears bit by bit and we keep going on and keep encouraging them to take on new work and they are doing that while we settle these arrears,” Ncube stated.
Opposition Citizens for Coalition Change MP Corban Madzivanyika expressed skepticism regarding the sustainability of the current payment pace, given the substantial US$1.2 billion debt.
He relayed concerns from the Zimbabwe Building Contractors Association about the apparent mismatch between the amounts being paid and the scale of the outstanding obligations, questioning whether the current approach is sufficient to facilitate expected development.
In response, Ncube reiterated the existence of “payment arrangements” and a “constructive relationship” with the contractors.
He expressed the government’s intention to improve the payment program for greater consistency and affirmed the commitment to continue payments until all arrears are cleared.
“As I said, we have payment arrangements with these contractors,” the Minister stated.
“We have a very constructive relationship with them and we will continue on the current payment programme but I also seek to improve that programme so we can be more consistent.
“We already owe the contractors. They are doing some good work and they are doing further work. The relationship continues. We will continue paying until we clear these arrears. There is no difficulty in terms of clearing the arrears.”
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