Government Payment Delays Force Job Cuts At Bitumen World

Top Zimbabwean construction firm Bitumen World (BW) has been forced to slash jobs after government delays in settling arrears stalled key projects.

The company said the payment backlog has hit several initiatives, including road rehabilitation and dam construction, forcing tough operational decisions. The company said:

“While efforts are underway to establish payment plans and small payments have been received, these financial constraints have contributed to the company’s decision to realign its operations to remain resilient in a challenging fiscal environment.”

Bitumen World expressed appreciation for the dedication and professionalism of its staff, vowing to handle the job cuts with transparency and respect.

The company said that it will support affected employees through severance packages and transition assistance.

CEO Andre Zietsman described the decision as incredibly difficult but necessary given the limited options available. He said:

“Over recent months, we have engaged in extensive discussions and evaluations to guide Bitumen World through this difficult period.

“While the decision to restructure was not made lightly, it is essential for ensuring our long-term viability and ability to continue contributing meaningfully to infrastructure development in Zimbabwe and beyond.”

Zietsman lamented that employees who have worked tirelessly to restore the country’s infrastructure will, unfortunately, bear the brunt of job losses.

Meanwhile, market analysts suggest that the government is delaying payments, particularly in local ZiG currency, to curb parallel market activities that fuel currency depreciation.

Recently, mineral exporters also revealed that the central bank has withheld their 30% export surrender in local currency.

More: NewZimbabwe.com