{"id":105755,"date":"2025-03-09T10:04:47","date_gmt":"2025-03-09T08:04:47","guid":{"rendered":"https:\/\/www.africa-press.net\/zimbabwe\/all-news\/cash-strapped-government-fails-to-pay-contractors"},"modified":"2025-03-19T11:47:20","modified_gmt":"2025-03-19T09:47:20","slug":"cash-strapped-government-fails-to-pay-contractors","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/zimbabwe\/all-news\/cash-strapped-government-fails-to-pay-contractors","title":{"rendered":"Cash-strapped Government Fails To Pay Contractors"},"content":{"rendered":"

Africa-Press – Zimbabwe. <\/strong><\/span>Local construction companies are facing major challenges as the government grapples with a worsening financial crisis.<\/p>\n

The Treasury is struggling to meet even basic obligations, leaving some contractor invoices unpaid for almost a year.<\/p>\n

In an interview with the Business Times, Joyline Zindaga, the CEO of the Zimbabwe Building Contractors Association (ZBCA), confirmed that these prolonged payment delays have left many contractors unable to complete government projects. Said Zindaga:<\/p>\n

We are engaging the Treasury to ensure our members receive their payments. Many contractors are in distress, unable to complete projects due to capital constraints. The authorities must act swiftly to prevent further disruptions.<\/p>\n

One affected contractor, who spoke to Business Times on condition of anonymity, painted a grim picture of the fallout. She said:<\/p>\n

I have not been paid for over a year. We are expected to complete projects, but how do we do that when we can\u2019t pay workers, suppliers, or service our loans? Many employees have already left, and some are threatening legal action.<\/p>\n

Adding to contractors\u2019 frustrations, the government has been accused of engaging in questionable financial practices.<\/p>\n

The last major payment to contractors, made on September 27, 2024, was made in ZiG \u2013 only for the ZiG to be suddenly devalued just hours after the payments were issued.<\/p>\n

According to industry estimates, the Zimbabwean government currently owes over US$1.8 billion in outstanding payments to various service providers, with some of these debts dating back to as early as August 2024.<\/p>\n

Rosemary Mpofu, the CEO of the Consumer Council of Zimbabwe (CCZ), warned that the government\u2019s failure to pay its debts to service providers is already having a detrimental impact on overall consumer demand. She said:<\/p>\n

We understand the need for fiscal discipline, but these prolonged delays are causing unnecessary distress.<\/p>\n

More companies are on the brink of collapse, and unemployment is set to rise unless urgent action is taken.<\/p>\n

Zimbabwe National Chamber of Commerce (ZNCC) President Tapiwa Karoro said:<\/p>\n

Delaying payments to service providers is draining liquidity from the market. If this continues, the government will be forced to fund its fiscal deficit through borrowing or printing money\u2014both of which have dire consequences.<\/p>\n

For More News And Analysis About Zimbabwe<\/span> Follow Africa-Press<\/span><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Africa-Press – Zimbabwe. Local construction companies are facing major challenges as the government grapples with a worsening financial crisis. The Treasury is struggling to meet even basic obligations, leaving some contractor invoices unpaid for almost a year. In an interview with the Business Times, Joyline Zindaga, the CEO of the Zimbabwe Building Contractors Association (ZBCA), […]<\/p>\n","protected":false},"author":84,"featured_media":105754,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3,12],"tags":[9595,11279,19],"class_list":["post-105755","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-policy","tag-contractors","tag-government-contractors","tag-zimbabwe"],"yoast_head":"\nCash-strapped Government Fails To Pay Contractors - zimbabwe<\/title>\n<meta name=\"description\" content=\"Local construction companies are facing major challenges as the government grapples with a worsening financial crisis. ...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.africa-press.net\/zimbabwe\/all-news\/cash-strapped-government-fails-to-pay-contractors\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Cash-strapped Government Fails To Pay Contractors\" \/>\n<meta property=\"og:description\" content=\"Local construction companies are facing major challenges as the government grapples with a worsening financial crisis. ...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.africa-press.net\/zimbabwe\/all-news\/cash-strapped-government-fails-to-pay-contractors\" \/>\n<meta property=\"og:site_name\" content=\"zimbabwe\" \/>\n<meta property=\"article:published_time\" content=\"2025-03-09T08:04:47+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-03-19T09:47:20+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/static.africa-press.net\/zimbabwe\/sites\/14\/2025\/03\/sm_1741503306.776302.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1600\" \/>\n\t<meta property=\"og:image:height\" content=\"1158\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"cfeditoren\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"cfeditoren\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.africa-press.net\/zimbabwe\/all-news\/cash-strapped-government-fails-to-pay-contractors#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.africa-press.net\/zimbabwe\/all-news\/cash-strapped-government-fails-to-pay-contractors\"},\"author\":{\"name\":\"cfeditoren\",\"@id\":\"https:\/\/www.africa-press.net\/zimbabwe\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\"},\"headline\":\"Cash-strapped Government Fails To Pay Contractors\",\"datePublished\":\"2025-03-09T08:04:47+00:00\",\"dateModified\":\"2025-03-19T09:47:20+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.africa-press.net\/zimbabwe\/all-news\/cash-strapped-government-fails-to-pay-contractors\"},\"wordCount\":374,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/www.africa-press.net\/zimbabwe\/all-news\/cash-strapped-government-fails-to-pay-contractors#primaryimage\"},\"thumbnailUrl\":\"https:\/\/static.africa-press.net\/zimbabwe\/sites\/14\/2025\/03\/sm_1741503306.776302.jpg\",\"keywords\":[\"Contractors\",\"Government Contractors\",\"Zimbabwe\"],\"articleSection\":[\"all news\",\"policy\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.africa-press.net\/zimbabwe\/all-news\/cash-strapped-government-fails-to-pay-contractors#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.africa-press.net\/zimbabwe\/all-news\/cash-strapped-government-fails-to-pay-contractors\",\"url\":\"https:\/\/www.africa-press.net\/zimbabwe\/all-news\/cash-strapped-government-fails-to-pay-contractors\",\"name\":\"Cash-strapped Government Fails To Pay Contractors - 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