The slowdown in construction activity during the past year had an impact on SANRAL’s ability to issue contracts.
Road construction and maintenance projects help to address some of South Africa’s most pressing social and economic challenges relating to unemployment and widespread poverty.
the South African National Roads Agency (SOC) Limited (SANRAL) is committed to the transformation of the construction sector through its tender processes.
Small- and medium-sized enterprises are given opportunities to tender for projects, while preference is given for companies owned by black South Africans, women, the youth and the disabled.
This contributes to the broader national efforts to create jobs – especially in rural areas – and empower communities through training and on-the-job experience.
As a state-owned enterprise, SANRAL’s corporate ethic is strongly influenced by Government’s policies and the broader national efforts to build and consolidate social and relationship capital.
A slow year
The slowdown in construction activity during the past year had an impact on SANRAL’s ability to issue contracts.
The total value of work undertaken by SMMEs increased by only 1.6%, but the number of contracts grew by nearly 30%. More than 70% of contracts went to black-owned SMMEs. This represents 83% of the value of work done.
Delays in the awarding of tenders for planned construction projects resulted in a decrease in the number of work opportunities offered by SANRAL.
There were also fewer opportunities for training offered to workers who were employed on SANRAL contracts.
However, the work opportunities that were created were, on average, of longer duration and contributed to the empowerment of participants.
There was a decrease in the number of work opportunities afforded through SANRAL contracts in 2018/19.
About 10 000 fewer work opportunities were available than in the previous year – a decrease of 27%.
That said, work opportunities created in 2018/19 were, on average, of longer duration.
Because of the drop in work opportunities, there was also a major decrease in training offered to workers employed on SANRAL contracts.
This situation is attributable to delays in the awarding of tenders for planned construction projects.