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Zimbabwe’s Bitumen World, a leading construction contractor linked to the influential Rudland family, has announced staff layoffs as delayed government payments strain the company’s operations. The firm, which manages major projects including the Harare–Masvingo highway, is implementing cost-cutting measures to remain solvent amid growing economic pressures.
Government delays squeeze contractors
Persistent delays in government project payments have forced Bitumen World to reduce costs, including workforce reductions, threatening the livelihoods of employees engaged in locally executed infrastructure projects. The company has not disclosed the scale of the layoffs, but the move reflects broader challenges facing contractors and exporters across Zimbabwe.
Bitumen World’s difficulties underscore wider economic pressures, including currency volatility, delayed government payments, and policy misalignment—all of which threaten both employment and the timely delivery of infrastructure projects.
Despite these challenges, Hamish Rudland’s continued backing highlights sustained investor confidence in Zimbabwe’s construction sector. Through his investment portfolio, Magister Investments, Rudland has supported Bitumen World’s expansion and international diversification while maintaining local infrastructure development and employment.
Economic distortions hit the infrastructure sector
Zimbabwe’s Reserve Bank increased the platinum export surrender requirement to 30 percent in February 2025 in an effort to stabilize the local currency. Unsettled government obligations and delays in Zimbabwe dollar (ZiG) payments have created liquidity shortages, pushing the parallel market rate to 35–40 ZiG per USD, well above the official rate of 26.4 ZiG.
Other local firms, including Masimba Holdings, have shifted their focus to private-sector contracts to avoid government payment delays. President Emmerson Mnangagwa’s infrastructure ambitions, including prioritizing local contractors for major projects, are under pressure as companies struggle to access sufficient funding.
Rudland-backed growth strategy
Founded in 2012 by CEO Andre Zietsman, Bitumen World grew through state contracts and international projects, including Inter-Africa Civils (IAC) and BW Mining. In 2019, Hamish Rudland acquired a stake through Magister Investments, supporting the company’s expansion.
Magister, with holdings in logistics, agriculture, and financial services, also controls Tongaat Hulett, Southern Africa’s largest sugar producer. The Rudlands maintain positions on the Zimbabwe Stock Exchange through stakes in Zimre and CFI. Delays in government payments and unstable cash flows could increase risks for contractors like Bitumen World, potentially affecting investor confidence and infrastructure projects.
