Bitumen World Forced to Cut Jobs Over Delayed Government Payments
One of Zimbabwe’s biggest construction firms, Bitumen World (BW), has announced job cuts after government delays in paying contractors left the company struggling with cash flow.
This is not the first time the issue has been raised. For years, contractors have pleaded with authorities to pay on time, warning that stalled payments disrupt the infrastructure projects the government itself prioritises.
Analysts believe the delays are deliberate, with the state holding back payments in local currency to control the black-market exchange rate. Similar complaints have also come from mineral exporters, who revealed that the central bank is not paying their 30% surrender portion in local money. For companies like Bitumen World, the effect has been devastating.
Government Debt Hits Hard
The company admitted that its biggest challenge has been government failing to settle arrears for major projects like roads and dams. It explained that while small instalments have been made, the delays have made it impossible to sustain operations, forcing BW to restructure.
“The Zimbabwean government, one of the company’s largest debtors, is experiencing significant challenges in making timely payments… These financial constraints have contributed to the company’s decision to realign its operations to remain resilient in a challenging fiscal environment,” BW said in a statement.
Tough Call for Management
CEO Andre Zietsman described the decision as painful but unavoidable. He said the company had spent months exploring every possible option, but without reliable cash inflows, restructuring was the only way to keep the business alive and still play a role in Zimbabwe’s infrastructure development.
“While the decision to restructure was not made lightly, it is essential for ensuring our long-term viability,” Zietsman said.
Heavy Blow for Workers
Zietsman also acknowledged the human cost of the layoffs. He said it was a tragedy that the very workers who helped build Bitumen World’s reputation would now be the ones losing out.
“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,” he said.
Company Commits to Supporting Staff
Bitumen World said the retrenchment process would be handled with dignity and transparency. The company promised to provide severance packages and transition support to help employees through the difficult change.
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The post Bitumen World Forced to Cut Jobs Over Delayed Government Payments appeared first on iHarare News.
