Delayed payments from government have forced Bitumen World to cut jobs, the latest contractor to show distress from public works.
Bitumen is one of five local construction companies awarded contracts on the Harare–Masvingo highway, among other projects such as dams. These big state projects have helped local firms like Bitumen World expand their fleets and add staff. But the same government contracts are now hurting, with slow payments leaving companies exposed.
Bitumen says it needs to cut costs, including staff.
“This necessary transition reflects a committed effort to adapt to the current economic challenges, including operating under cash flow pressures caused by delayed payments from clients,” the company says. It did not say how many jobs will go.
Bitumen World chief executive Andre Zietsman launched the company in 2012. Hamish Rudland became a shareholder in the business in 2019. The company has seen rapid growth in recent years, partly due to government business. Bitumen has recently set up an international unit, the Inter-Africa Civils (IAC) group, and partnered with R Davis on a contract mining venture, BW Mining. But payment delays are weighing down the firm.
“The government is facing delays in settling arrears, affecting various projects including road rehabilitation and dam construction,” Zietsman says. He adds: “Bitumen World has always delivered large-scale projects on time and within budget. The tragedy of these layoffs is that they impact the very people who built this prestigious brand — a brand that was wholly created by Zimbabweans.”
In 2024, government announced Bitumen World would be granted a build-operate-and-transfer concession for the Beitbridge-Vic Falls Highway, but seems to have gone cold on the contract.
Bitumen’s experience with government payments mirrors that of other top contractors. Masimba Holdings saw its revenue fall 43% in the first quarter of 2025 after scaling back government work in favour of private sector clients.
Meeting businesses in 2023, President Emmerson Mnangagwa said his strategy to use local firms for large projects was paying off. “In the past, when we wanted to build a road we would look for foreign tender. This time around, we said no, we settled on five domestic companies. They have managed to build their capacities,” he said.
However, delayed payments have not only stalled projects, they have also hurt the local firms. In April, Finance Minister Mthuli Ncube admitted that the state was behind on paying what it owes to contractors. “As the government, we acknowledge that we have been in arrears with contractors, particularly those in the transport and infrastructure sectors. This is due to cash constraints that we face,” Ncube told Parliament. “We keep encouraging them to do more work while we settle those arrears.”
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