OUR last week’s report on Treasury payment delays suffocating road contractors makes for troubling reading.
It paints a picture of a government failing its most crucial partners in development: the small and medium-sized enterprises that form the backbone of our infrastructure drive.
We reported that emerging Zimbabwean contractors, who spearheaded key road rehabilitation projects under the government’s flagship Emergency Road Rehabilitation Programme, are facing bankruptcy and lawsuits after the Ministry of Finance failed to pay them on time.
When emerging contractors answer the call to rebuild our roads, they invest everything — personal savings, bank loans and their reputations. They operate on the reasonable expectation that the state will honour its obligations promptly.
To then be left waiting for up to 10 months for payment is not just an inconvenience; it is a death sentence for a business.
Being paid in local currency converted at unfavourable rates adds insult to injury as the value erodes against their original US dollar costs. The consequences, as highlighted, are stark: lawsuits, seized assets and the collapse of promising startups that should be the pride of our national rebuilding efforts.
We understand the immense pressure on our monetary and fiscal authorities. Their efforts to protect the value of the Zimbabwe Gold (ZiG) and rein in inflation are commendable and necessary for long-term stability.
However, we must ask: at what cost? If the strategy to protect the currency involves crippling the very entrepreneurs who build our economy, then it is a victory that is not worth winning.
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A stable currency must be underpinned by a growing, functioning economy, not one where the government is withholding payments.
Without reliable contractors, road projects stall, which in turn hampers economic activity and the very tax base needed to stabilise public finances.
The government’s new focus on public-private partnerships is a welcome shift in theory, as it ensures projects are fully funded before they begin. But this does not absolve the state of its existing debts or its duty to be a reliable client.
The legacy of unpaid invoices must be cleared with urgency. Confidence is the bedrock of any economy, and right now, it is evaporating.
How can a startup or any business, in good faith, tender for government work when the risk of non-payment is so high?
The government must see these contractors as vital partners in national development. Supporting startups and small businesses means paying them on time, as agreed. A structured payment plan for arrears and a firm commitment to timely future settlements are not just acts of good faith; they are essential economic policy.
We cannot build Zimbabwe’s infrastructure on the ruins of its private sector. Honouring obligations is the first and most fundamental step towards a truly thriving economy.
We sincerely hope the authorities will address this critical issue with the seriousness it deserves.
