In 2025, Zimbabwe’s construction sector experienced a remarkable expansion, driven by a potent mix of government policy, private investment, infrastructure demand, and individual investors seeking refuge for capital. This surge in construction from mega-projects to residential builds not only reshaped skylines but became a mirror of economic sentiment and confidence among Zimbabweans and foreign backers alike.
A Sector Growing by the Numbers
Recent data shows that over the past year Zimbabwe’s construction sector attracted roughly US$2 billion in investment from both local and international sources, a significant marker of confidence compared with preceding years. These funds flowed into commercial, industrial, and residential projects across major cities such as Harare, Bulawayo, Mutare, and Victoria Falls.
Government-backed infrastructure initiatives played a central role in this upswing. Numerous road rehabilitation projects such as upgrades to the Harare–Masvingo–Beitbridge corridor and expansion of the Harare–Chirundu trade route strengthened connectivity and served as major stimuli for job creation and construction activity.
Megaprojects and Manufacturing Growth
Beyond roads and bridges, Zimbabwe embarked on high-impact industrial construction. One of the most ambitious is the Palm River Energy Metallurgical industrial park, a US$3.6 billion development aimed at transforming the Beitbridge Special Economic Zone into a manufacturing hub. This long-term project symbolizes Zimbabwe’s aspirations to diversify its economy and expand beyond traditional mining and agriculture.
At the same time, manufacturing closely tied to construction through demand for cement, steel, and materials attracted more than US$1.4 billion in new investments in 2025. This surge helped Zimbabwe’s manufacturing sector overtake mining and agriculture in GDP contribution, underscoring the wider economic momentum that construction helps anchor.
Industrial and Residential Expansion
Construction wasn’t limited to public infrastructure. Several major industrial facilities and structural manufacturing plants were underway in 2025:
• A multi-milliondollar cement plant by Whi-Zim progressed rapidly on the outskirts of Magunje, poised to become a key supplier of building materials by mid-2025.
• Renewed investment in steel and heavy industry for example, expansions at the Dinson Iron and Steel facility backed by major foreign capital stimulated demand for skilled labour and supplied essential materials for building projects.
Residential construction also gained pace. Urban housing developments in Harare and other cities responded to growing demand, while mixed-use precincts like the US$43 million Eagle Heights project in Victoria Falls aimed to reposition the tourism town as a modern economic node with retail, hospitality, and residential components.
Why People Are Investing in Construction
There are several reasons behind the boom in construction investment:
- Construction as a Safe Haven for Capital
In a volatile economic environment with currency uncertainty and limited confidence in financial markets, many Zimbabweans turned to property and real estate as a store of value. Buying land and building homes or commercial properties became a way to protect savings and hedge against inflation a trend widely observed among local investors.
This behavioural shift was not unique to high-net-worth individuals. Across urban and rural areas, everyday investors participated in building activity as a means of securing tangible assets, even as traditional investment channels remained constrained.
- Remittances and Diaspora Engagement
Though not the only driver, remittances from Zimbabweans abroad continued to fuel construction spending at the household level. Many families used funds sent from the diaspora to start or complete residential projects, contributing to the visible growth of new houses and neighbourhood expansions. - Public Policy and Economic Reform Signals
Government infrastructure spending under the National Development Strategy and supportive policy rhetoric helped reinforce investor confidence. Public-private partnerships in construction projects signalled that large investments would be backed by stable contracts and legislative support encouraging both local and foreign participation.
Banks and developers reported increased demand for construction materials like cement, indicating that the surge was deep and broad-based, not isolated to marquee projects alone.
Broader Economic Impacts
The construction boom in 2025 contributed to employment generation, skills development, and supply-chain growth in related sectors such as transport, logistics, and manufacturing. Contractors, architects, engineers, and material suppliers all benefited from the heightened activity.
Importantly, the uptick in construction also strengthened fiscal revenues through fees, permits, and increased economic activity in urban centres, helping broaden the base for future development.
Conclusion: Building for Tomorrow
The scale of construction in Zimbabwe in 2025 reflects more than bricks and mortar being laid it signals a deeper story of economic adaptation, resurgence in investment confidence, and the strategic use of construction as both an economic lever and store of value. Whether driven by large industrial projects or personal investments in property, the construction sector’s evolution in 2025 stands as a defining chapter in Zimbabwe’s development journey one with impacts that will likely be felt for years to come.