The construction industry in the Copperbelt region is facing a major setback due to the lack of capital projects initiated by the government. Contractors in the industry have reported a significant decline in their performance and productivity as a result of this issue. The absence of new projects has led to a decrease in demand for construction services, resulting in financial losses for many businesses in the sector. The government’s failure to invest in capital projects is having a ripple effect on the entire construction industry in the region.
The construction industry in Zambia’s Copperbelt province is facing a major setback due to a lack of capital projects. According to Danny Simumba, the General Secretary of the Zambian Association of Citizen Contractors-ZACCO, the economy of the region has been adversely affected by the absence of government contracts and sluggish progress at the two major mines. This has resulted in a significant decline in construction activities from the end of 2022 to the second quarter of this year.
The construction industry is currently facing a major setback due to the lack of capital projects. This has been exacerbated by the ongoing issues at MOPANI and KCM, which contractors had hoped would be resolved by now. Unfortunately, no decision has been made regarding the future of these assets, leaving members of the industry with no opportunities to conduct business. This has had a significant impact on the industry as a whole, with many struggling to stay afloat during these challenging times.
This has resulted in a decline in business for many industry members. However, there is hope on the horizon with the announcement of upcoming projects such as the Ndola-Lusaka dual road construction and other projects by ZESCO Limited on the electronic government procurement platform. These projects may provide the necessary contracts to revive businesses and stimulate growth in the industry.
However, there is hope for improvement in 2024, as investments in the manufacturing, mining, and electricity sectors are expected to provide much-needed support.
