Building and Construction Brief

Zimbabwe ©

Last Updated March 2011

Compiled By T. Saungweme

1
 THE BUILDING AND CONSTRUCTION SECTOR IN ZIMBABWE

Introduction
The building and construction sector comprises of all companies that are involved in
either the manufacturing or provision of construction materials and/or services. These
include manufacturers of cement, paints, window & door frames, steel
reinforcements; prefabricated structures, tiles, roofing materials and accessories (e.g.
timber & asbestos, screws and nails), plumbing material, etc. Building contractors,
architectures, civil and mechanical engineers, etc are examples of service providers in
the construction industry.

An economic sector overview

The 2009 world recession and a decade of national economic melt down that was
experienced in Zimbabwe until early 2008 left many construction projects around the
country undeveloped. Low savings emanating from little to no disposable incomes
impacted negatively on the private sectors’ local demand for building materials and
construction services. Unprecedented high levels of government debt coupled with
zero external financial handouts spared not the public sector projects most of which
were abandoned. Liquidity challenges to recapitalize and adopt state of the art
technology have translated into minimum sector output and service exports.

It is imperative, however, to note that the construction sector is among the sectors
which have been on the recovering path in 2010. This has been evidenced by the
reappearance of construction tenders in the media.

HS code classification of building materials

No. HS Code Product description
1. 2505 Natural sands of all kinds
2523 Cement, aluminous cement and phosphate cement
2. 3208 Paints and vanishes
3211 Prepared driers1

1
Prepared driers are mixtures used to accelerate the drying of certain paints or vanish by facilitating the oxidation
of the drying oil.

2
3. 3917 Plastic tubes, pipes, hoses and fittings
3918 Floor coverings of plastics
3925 Builders’ ware of plastics
4. 4009 Rubber tubes, pipes and hoses
5. 4403/08/12/18 Wood timber related to construction
6 48193010 Bags for bagging cement in bulk
7. 6810 Articles of cement, articles of stone and concrete
6810.11 Building blocks and bricks
8. 6811 Articles of asbestos cement, fibre cement
6811. 10 Corrugated sheets
6811. 10.30 Tubes, pipes and tube or pipe fittings
9. 69 Ceramic Products2
6901 Bricks, blocks, tiles and other ceramic goods of siliceous fossil meals
6902 Refractory bricks, blocks and tiles
6904 Building bricks
6905 Roofing tiles
10 70169 Paving blocks, slabs, bricks, squares, tiles and articles of pressed glass
11. 7208/09/16/19 Iron and steel construction related products
12. 7301 Articles of iron & steel related to construction
7308. 10 Bridges & bridge sections
7308. 20 Towers & Lattice masts
7308. 30 Doors, windows, & their frames and thresholds for doors
7308. 40 Equipment for scaffolding, shattering, or propping.
7317.00.20 Wire nails, in strips or rolls
7317.00.40 Steel nails, hardened
7317.00.69 Other wire nails, galvanised
7318.11.00 Hexagon Head Wood Screws
7318.12.10 Other wood screws, of stainless steel
7318.12.90 Other wood screws
13. 7412 Fittings, pipe or tube of refined copper
14 7610 Aluminium and articles thereof for construction
15. 8301 Cylinder locks used on doors in buildings
8302 mountings and fittings for buildings e.g. Hinges
8302. 60.90 Automatic doors in buildings
16 84262000 Tower cranes

Classification of building materials by product:

• Iron & steel, aluminium and other metal related products
• Wood related products
• Asbestos and related products
• Cement and articles thereof
• Plumbing material and fittings

2
The term ‘ceramic products’ applies to products obtained: (a) by firing inorganic, non-metallic materials which
have been prepared and shaped previously at, in general, room temperature. Raw materials comprise, inter alia,
clays, siliceous materials, etc; (b) from rock e.g. steatite, fired after shaping.

3
• Paint and varnishes
• Bricks and pavings
• Plastic materials

Geographical Spread
Building and construction companies and service providers are widely spread
through out the country but have a higher concentration in Harare, Bulawayo and
several other cities and towns. The geographical spread out depends mainly on the
product, service or activity being considered. Statistical analysis of the current
companies in the database indicate that 67% of the companies (excluding timber
& wood companies, cement companies) are in Harare, 22% are in Bulawayo and
11% are located in other cities and towns. Those in wood and timber related
products are highly centred in the Eastern Highlands, which is certainly explained
by resource endowment of the area.

Major players in building and construction sector

No. Category Major Players
1 Iron & steel, aluminium and • Almin Metal Industries Ltd
other metal related products • Double Bridge
• Steel makers in Zimbabwe
• Ziscosteel
• Steelbase
• Lancashire Steel
• Crittal hope
• Astra steel, Steel Force
2 Wood related products • PG Industries
• Allied Timber
• Border Timbers
• Wattle Company
• ARDA
• Nyanga Timbers
• Timberland
• Lupane Timbers

4
3 Asbestos and related products • Turnal Fibre Cement
• Zimtile
4 Cement and articles thereof • Lafarge (Pvt) Ltd, Sino Cement
• Sino Zimbabwe
• Portland Cement
• Fort Concrete
• Hume Pipe
5 Plumbing material and • Turnal Fibre Cement
fittings • Tube & pipe
• Stainless Steel
• Zimcast, Clay products
6 Paint, glues and varnishes • Trinidad industries
• Dulux
All paint imports have the • Astra
following duties: Duty 15%, VAT
15% • Chroma
7 Bricks and ceramic products • Beta bricks
• Wildale bricks
• McDonald bricks
• Clay Products ltd
8 Plastic materials • Proplastics
• Treger
• Prodorite
9 Building Contractors • John Sisk & Son (Pvt) Ltd
• A M Machado
• Central africa Building &
Construction
• Bitumen Construction Services
• Costain Zimbabwe
• Murray & Roberts Zimbabwe
• Rio Douro Construction Pvt
• Tower Construction
• Kuchi Builders

5
Contribution to GDP and Exports
The construction sector took a share of less than 1% of the GDP in 2008, relative to
3% in 2007.

Regulations/Controls Associated With Trade in Timber

Issues relating to trade are handled by the Ministry of Industry and Commerce
and the Reserve Bank. It is important for intending exporters to ensure that
they satisfy the requirements of these institutions.

The Forestry Commission addresses issues specifically provided for by the

Forest Act.

The Forest Act provides for the regulation of trade in forest produce through
registration of trademarks, control of import, export, transport, sale,
manufacture and grading of trees and timber and use of trade names in
respect thereof. Most of these regulations are implemented through statutory
instruments.

Currently, Statutory Instrument 112 of 2001 prohibits export of raw and

primarily processed timber

The Commission is currently not regulating trade in softwood timber.

However, trade in hardwood (most indigenous trees – Teak, Mukwa, Mchibi,
Pody Mahogany, Msasa, White Syringe) requires the commission’s approval
first.

Procedures to follow when exporting Timber

A: Informal Trade

The informal exporter must produce a copy of the harvesting permit showing
the source of the raw materials as jointly issued by the Ministry of
Environment and Natural Resource Management (through Forestry
Commission) and the local authority concerned.

Samples of artifacts should be submitted to the Forestry Commission

accompanied with a harvesting permit. The informal trader has to fill in
declaration / inspection form. This is the basis of inspection. The Inspector
then inspects the consignment.

Wood products made from protected and/or reserved trees are not allowed for
exportation without a harvesting permit or license.

6
 Formal Companies

Companies intending to export timber products are required to accredit
themselves with the regulatory authority (Forestry Commission) on an annual
basis. The Forestry Commission only inspects export consignments of
accredited companies.

In order to be accredited, companies must produce the following:-

o Certificate of incorporation
o Tax clearance certificates
o Must be contributing to standards development (Ministry of Industry
and Commerce).

Intending exporters are required to pay an accreditation fee of $350 million
per calendar year.

B: Formal Trade

The company intending to export forwards a request to the Forestry

Commission clearly itemizing the products intended for exportation and their
value.

The Forestry Commission inspects the consignment at the exporter’s premises
and generates a letter to ZIMRA stating the items in the consignment.

The exporter is required to pay an Export inspection fee of $140 million or 1%
of the export value whichever is greater (as at March 2008).

An export permit may be issued if the consignment fulfils the requirements of
the law.

Export markets & sources of raw materials

South Africa is the leading import and export market and competitor for both products
and services in the construction sector, followed by Zambia, Democratic Republic of
Congo, Namibia and Malawi. Mozambique, Tanzania, and Angola are other regional
countries with both market and investment opportunities potential for the construction
sector.

Most industrial inputs are sourced from South Africa. These include iron & steel
products (sheets, bars, plates, etc), industrial chemicals and other machinery and
equipment. Apart from South Africa, Asia (mostly China, Indonesia, India, Japan,)
and the United Kingdom are the major source market for sophisticated machinery.

Table 1: Types of Wood based Industries in Zimbabwe (1999)

Type of Plant No. of Annual Comment

7
 Plants Production

Sawmill and processed 41 395 292 m3 Production of sawn timber and other
timber related products e.g. doors, blocks.

Poles 6 94 380 m3 Treated poles

Mining timber 4 5 179 m3

Veneer & plywood 2 11 151 m3 Only pine species are used.

Particle and fibre board 1 53 000 m3

Paper and paper 2 59 149 m3 A large input consists of recycled paper.

products

Wattle extract 1 4 500 tonne

Charcoal 1 9 200 tonne Made mostly from wattle logs.

Source: TPF Zimbabwe Timber industry Statistics for the Year Ended 31 March 2000

Standards applicable in the sector

• ISO 14000 Environmental management Standards in production environments
• ISO 9001 Quality Management System in production systems
• SAZ Quality standards

Overall Challenges in the Construction industry

• Globalization (Stiff competition):- South African companies and other MNCs

with high skilled labour, state of the art technology and equipment have
grabbed both local and regional business away from the local
companies/players.
• Liquidity challenges – absence of credit lines and unfavourable short term
borrowing conditions (e.g. high interest rates) have not only created working
capital challenges but hampering the possible boost in the sector (recovery
process). Capital is required to replace the obsolete machines and equipment
and facilitate technology transfer.
• Inefficiencies in infrastructure development – inefficiencies in the railway
transportation systems have adversely affected transportation of bulk building
materials and raw materials to respective areas of use or market (e.g. steel)

8
 • Depressed local demand - Slow economic recovery from the global crunch
still has an adverse bearing in the demand of construction services and
products.
• Perceived country risk makes suppliers of raw materials reluctant to offer
lucrative credit and payment terms, demanding cash up front.
• Lack of export marketing strategies, by sector members, to either penetrate or
maintain export markets.
• High utility costs and frequent load shedding – Unrealistic ZESA billing
costs and frequent power cuts have interrupted production and added to the
costs.
• Uncontrolled harvesting of timber, especially by illegal settlers, has
compromised the quality of timber and raised questions of sustainability.
• make-shift” saw millers are compromising the quality of timber.

Association’s suggested way forward

• The Construction Industry Federation of Zimbabwe in conjunction with
Zimbabwe Building Contractors Association, are pushing for a contractors’
bill in which they are lobbying the Government to prioritize project allocation
to Zimbabwean companies (51% v 49%)
• Members were encouraged to expand their business into regional markets in
the face of BIPPAs and regional economic integration.

ZimTrade’s proposed Invention

• ZimTrade in conjunction with both industry and sector associations, like
CIFOZ, TPTA, ZBCA, TPF, CZI and ZNCC should work hand in hand in
lobbying the government in issues pertaining to policy
• ZimTrade should assist in linking companies with possible sources of finance.
• Organize sector targeted workshops aimed at disseminating information.
• Identifying markets and investment opportunities within and outside the
country on behalf of companies.
• Inform companies on the significance of exporting despite dollarizaton.
• Train companies on: export marketing strategies, quality management and
capacity building.

9
 • Carry out market researches on behalf of companies so that we disseminate
current and accurate information.
• Encourage companies to be visible in international markets by participating in
both regional and international trade fairs and exhibitions.
• Train companies to profitably benefit from the use of trade maps and product
maps.
• Advise companies on the importance of having internationally certified quality
products

Associations in the Sector

Association Coverage Contact Person & Details
Timber Producers Federation Wood & timber Mr. M. Smith (CEO)
producers P.O.Box1736, Mutare
020-60959 [email protected]
Construction Industry Federation of All construction related Mr. M. Chingaira (CEO)
Zimbabwe companies & service 256 S/Machel Ave
President – Mr. P. Chiyangwa providers East, Harare
04-746661/746905
Zimbabwe Building contactors Contractors 2nd floor, St Barbara House
Association Harare Street, Harare
President –Mr. Oliver Chidhawu 796294/5 Fax 796256
Timber Processors and Traders Processors and merchants Mr. Mr. Mujaji (President)
Association. The Association is the Timber Processors Association
of timber and wood
mother to the following C/o Guarantee Truast Pvt Ltd T/A KLEKO
associations: products No 16 Douglas Road Workington Harare.
• Timber Producers
Federation
• Furniture Association of
Zimbabwe
• Lumber Millers & Traders
Associations

President - Mr. G. Mujaji

Updated March 2011

10