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SMMEs on the N2 Wild Coast Road project in the Eastern Cape upbeat about accessing finance to participate in the economy

MEDIA RELEASE

SMMEs on the N2 Wild Coast Road project in the Eastern Cape upbeat about accessing finance to participate in the economy

      Caption: SMMEs were highly appreciative of the enterprise development opportunities presented by SANRAL

Lusikisiki, Eastern Cape, 3 April 2024: The South African National Roads Agency SOC Limited (SANRAL) has made a commitment to provide small, medium and micro enterprises (SMMEs) with adequate engineering tools to gain access into the construction sector.

The roads agency recently hosted an information session for SMMEs at the Lusikisiki Resource Centre in the Eastern Cape, where various sectors of the economy made presentations on the kinds of assistance available to SMMEs.

The assistance is available on the N2 Wild Coast Road project that stretches from the Gonubie Interchange outside East London, through the 112km greenfield portion near Port St Johns to the Mtamvuna River near Port Edward.

In line with SANRAL’s transformation agenda as outlined in its Horizon 2030 strategy, the session was intended to assist SMMEs with access to critical information by inviting financiers, the Department of Employment and Labour as well as plant manufacturer, Bell Equipment. This is meant to create a conducive environment for SMMEs on the Wild Coast to participate in all SANRAL projects.

“We have a situation where SMMEs have challenges with cash flow. I am happy to see the SMMEs happy. They understand that this was their session to find out how they can benefit from this collaboration,” said SANRAL’s District Office Manager, Nwabisa Gxumisa.
She emphasised SANRAL’s commitment to ensure the construction industry is transformed by creating opportunities through collaboration with economic drivers. “The plan was to complete Msikaba bridge in 2023 but due to delays, it will now only be completed in 2025. We are still going to have community development projects and access roads under the seven packages,” said Gxumisa.

The Department of Employment and Labour reiterated the importance of complying with the basic conditions of employment. Labour official Fezile Xhongo warned about the registration and clear remuneration packages for employees.

“Inspectors have every right to visit any business without obstruction, and businesses must answer all the questions asked. The way you remunerate your employees must be clearly outlined. For example, is it in terms of the minimum wage or is it determined by a bargaining council, as is the case with SANRAL? Your excuse cannot be that you did not know, when you can always ask your labour office,” he said.

Plant manufacturer Bell, a proudly South African company with a factory in Richards Bay, says SMMEs need yellow machinery, describing them as game changers in the industry.
Fortune Matsobane, Consultative Sales Advisor Executive at Bell said: “It would empower them to own the machinery, as it is capital investment. Bell is in a process to amend a Memorandum of Understanding with SANRAL and in the next month, we will have a revised approach on where and how the SMMEs can access these machines”.

A living example of this benefit is a woman who hires a yellow fleet to an established construction company. Nogolide Zokufa has been attending these sessions for years as she benefits from the interactions.

“I started with a bed-and-breakfast establishment in Flagstaff, but Bell opened my eyes through these sessions two years ago. Today I’ve hired a Tractor-Loader-Backhoe and an excavator out to a company that tendered for the N2WCR Package 5 between Msikaba and Mtentu bridges,” she said.

Standard Bank has opened its doors to small businesses to access funding for various banking needs as newcomers. Standard Bank representative Rebecca Mbalo advised on the availability of an enterprise development loan that has a limit of R1,5 million designed for SMMEs.

“Standard Bank is open to assist everyone irrespective of whether they are our clients or not. We can assist as long as you have a contract, even on the asset side. We have a credit appetite for SMMEs. The longer the contract, the better it is for SMMEs to repay,” said Mbalo.

SMMEs were eager to know if there were financial packages for first time business owners, and that there is equality when the Employment and Labour department enforces labour laws for small and large competing businesses.

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Update on SANRAL’s upgraded interchanges

SANRAL has rolled out more than 700 projects worth some R44 billion over the last five years. These projects, which include roads, tunnels, bridges and interchanges, have enabled ordinary citizens who were previously excluded from economic opportunities to do business and participate in the economy.

The impact of SANRAL’s investments in road infrastructure penetrates deep into the hearts of marginalised communities.

The EB Cloete Interchange in KwaZulu-Natal and Karino Interchange in Mpumalanga are just two examples of spectacular interchanges that SANRAL has been busy with.

EB Cloete Interchange

The upgrades of the N2 and N3 in KwaZulu-Natal form part of National Government’s key Strategic Integrated Projects, SIP2: Durban-Free State-Gauteng Logistics and Industrial Corridor. SIP2 aims to strengthen the logistics and transport corridor between South Africa’s main industrial hubs, improve access to Durban’s export and import facilities and raise efficiency.

The N2N3 upgrade project is divided into many phases, and includes upgrading of the EB Cloete Interchange, one of the most iconic interchanges in the country.

Popularly known as ‘spaghetti junction’, it was completed in 1970 and provides a full-system interchange for the N2 and N3. The network has been under increasing capacity constraints and SANRAL decided to undertake much needed upgrades.

Limited space for expansion will see this project feature a spectacular arch that will support the N3 carriageway as well as the flyover directional ramps. The arch will resonate with the arch theme of the Moses Mabhida Stadium and will be an iconic landmark as one enters Durban on the N3.

At R5 billion, the EB Cloete Interchange upgrade is the biggest single project value undertaken by SANRAL in its 25-year history.

General workers will be sourced from wards within 5km of the project site, which extends about 8.5km up and down the N2 and the N3 on either side of the interchange. It is expected that about R350 million will be spent on local labour over the contract period.

Completion of the upgrade of this interchange is expected to occur in 2027.

The greater N2/N3 corridor upgrades are expected to take 8-10 years to complete and will create up to 15,000 job opportunities during this period. Eleven projects worth approximately R24 billion are currently under construction.

 

Karino Interchange    

 

The R375 million Karino Interchange on the N4 National Road in Mbombela, Mpumalanga, provides a link between Mbombela and Kanyamazane, and a direct link from the R514 to the N4. The R514 also provides access to the Kruger Mpumalanga International Airport.

The N4 Toll Route is the catalyst for trade and investment between the three South African land-locked provinces of Gauteng, Limpopo, and Mpumalanga as well as neighbouring countries.

High commuter traffic volumes and the safety record at this intersection led to the decision to upgrade it to a grade-separated interchange with on- and off-ramps and a bridge to separate cross-traffic and through traffic and thus ease traffic flow.

Construction started in November 2019, and was completed in May 2022. About R116 million worth of work was set aside for SMMEs, and a total of 44 SMMEs benefitted from the project through subcontracting.

SANRAL commits to subcontracting at least 30% to SMMEs on all its projects. On this project this target was vastly exceeded, with 46.6% of the contract value going to local SMMEs.

In addition, R22.3 million was spent on local labour, with 422 local people employed: 236 males, 42 females, 143 youth, and one person living with a disability.

SANRAL ensures that at least 6% of contract value is spent on local labour. This project achieved a 9% spend on local labour.

 

SANRAL paves the road to freedom

As South Africa marks 30 Years of Freedom, President Cyril Ramaphosa used his State of the Nation Address (SONA) to outline how government has impacted the lives of ordinary people over the past three decades. He told the story of Tintswalo, born at the dawn of democracy in 1994, who grew up in a society that is worlds apart from the South Africa of her parents, grandparents and great-grandparents.

Now 25 years old, SANRAL has played a major role in reshaping the country that Tintswalo grew up in, and has provided many opportunities for her, her parents and her compatriots to live better lives.

As the Minister in the Presidency, Khumbudzo Ntshavheni, recently said when addressing a joint debate on the SONA, the Tintswalos are the engineers and contractors behind growing the more than 750,000km road network from 525,000km in 1995.

She added that in the past five years, SANRAL has executed projects to the value of R120 billion, which translated to just under 45,000 job opportunities and the participation of almost 6500 black- owned SMMEs.

CEO Reginald Demana said that SANRAL is determined to help government deliver on its promises: “We do this through the way we award and adjudicate our contracts, insisting on a minimum spend on local businesses and the use of local labour. We also do it through community development projects, as well as by supporting young people with bursaries and scholarships that help them to pursue opportunities and a better life.”

He added that despite court challenges to SANRAL’s preferential procurement policies last year, which led to withdrawal of those policies, the roads agency was able to recover towards the end of 2023 and put 77 contracts out on tender. Most of these are now at adjudication, and the intention is to put another 70 contracts out on tender before the middle of 2024 — an injection into the economy of about R28 billion.

“We will continue with our efforts to deepen transformation by allocating some contracts to smaller black-owned construction companies, which will help them to graduate to become major construction companies. We have a mandate to ensure that value flows through to SMMEs, local contractors and local communities. The aim is to stimulate economic growth, promote infrastructure development and create opportunities across the country,” he said.

Here are just a few of the ‘Tintswalos’ that SANRAL has set on the road to a better life, whose work and experience will impact many others.

  Phumzile Ntima, owner/director of Phiwane Trading Enterprise, Pietermaritzburg

 

Ntima attended SANRAL’s pre-tender training; Phiwane employs 10 local people and is installing gabions on the N2/N3 upgrades in KwaZulu-Natal.

Bongani Tonisi, director of Creamillion, George

Creamillion was a subcontractor on SANRAL’s Thembalethu Bridge upgrade on the N2 in George, and has since secured contracts with George Municipality and Garden Route District Municipality. It improved its Construction Industry Development Board (CIDB) grading from 1 CE EP to 2CE EP in only 10 months.

Thembi Maggie Mhlangu, owner of Qonjwana Pty Ltd, Moloto, Mpumalanga

Mhlangu worked as a subcontractor for King Civils on the R573 Moloto Road project, initially contracted to do sandblasting for three months, employing four people. Her second opportunity on the project saw the company involved in sub-soil drainage, fitting electrical sleeves, and concrete barrier infills, employing 10 people.

Belekazi Sikutshwa, owner of Mtha Development Projects, Wild Coast

 

This 100% black woman-owned construction company is registered with the CIDB as a level 4 CE PE and employs five people. When SANRAL took over the R61 section between Port St Johns and Port Edward from the Eastern Cape provincial government, Mtha Development Projects was awarded the contract for pothole patching and maintenance. Working with asphalt and concrete became an added competency, and the company will advance to a Grade 6 CE PE at the end of this contract.

Refilwe Motshaoane, Candidate Technologist at SANRAL’s Technical Excellence Academy (TEA) in Gqeberha

Received a bursary from SANRAL for a BTech at Central University of Technology. Her journey on a 5-year programme with SANRAL began on a project on the N12 in Victoria West, and she is now involved with pavement evaluation, hydraulics, and geometric design on the N2 outside Tsolo, Mhlontlo Local Municipality.

Nozipho Ngomane from Soshanguve, SANRAL Project Manager in the Northern Region

Received a bursary from SANRAL in her second year of studies in Civil Engineering at the University of Johannesburg, and is now a project manager at SANRAL, managing roads projects from start (procuring service providers, design and construction) to finish. She is also part of SANRAL’s tour to universities, to inspire other students.

Lwanda Sigaji from Mthatha, SANRAL Junior Project Manager

Received a SANRAL bursary to attend the University of KwaZulu-Natal, and is now a Junior Project Engineer who is proud of SANRAL’s job creation through its road maintenance projects.

 

Samantha Dladla from Uluni, SANRAL Project manager in Operational and Maintenance, Eastern Region

Dladla says “SANRAL brings change by maintaining South Africa’s huge asset of roads. We bring pride, value and hope to the people through our projects. My main motto is be constructive and make a change.”

 

SANRAL has become the backbone of our country’s economic architecture, as well as the bedrock of our country’s socio-economic development agenda, which has resulted in millions of previously marginalised, ignored, and economically excluded people being embraced, included, and allowed to flourish.

While SANRAL’s infrastructure projects improve roads, road safety, and the movement of people, they are primarily intended to improve the lives of the vast majority of individuals who previously lacked access to viable road infrastructure.

In addition to creating immediate employment for the communities surrounding these initiatives, improved infrastructure allows people the freedom to travel and seek out new schooling and employment opportunities, both within and beyond South Africa, with enormous social and economic effects on quality of life.

 

 

Five years of impact

Over the past five years, SANRAL’s flagship projects have redefined infrastructure, turning aspirations into realities across the nation. From ambitious road upgrades and interchange innovations to tunnels and bridges that stand as marvels of engineering, these endeavours epitomise SANRAL’s dedication to building a more connected and prosperous South Africa.

Beyond bitumen and concrete, SANRAL’s initiatives have also brought tangible change. By empowering small businesses and fostering inclusivity, particularly among previously disadvantaged groups, SANRAL has become a catalyst for socio-economic transformation.

As we navigate towards a future defined by progress, this timeline of the last 5 years shows a few highlights of the Agency’s journey of building not just roads, but avenues of opportunity and bridges to a more equitable and prosperous South Africa.

2017 March

SANRAL wins ISSA Award for Excellence for its Freeway Management System in the Western Cape.

2018 October

R1.14bn Mount Edgecombe Interchange in Durban officially opens.

 

2019 February

Construction begins on the ground-breaking Msikaba Bridge in the Eastern Cape.

 

October

The Olifants River Bridge in the Western Cape wins Fulton Award for excellence in concrete construction.

2020

May

Upgrade to the Hammarsdale Interchange on the N3 reaches completion.

September

R377m Pampoennek Road opens in the North West.

 

December

SANRAL’s Engineering 4.0 research facility opens its doors at the University of Pretoria.

International Road Federation presents SANRAL with a ‘Global Road Safety Award’ for outstanding commitment to safer roads.

 

Polokwane Eastern Ring Road opens to traffic.

2022

October

State-of-the-art Huguenot Tunnel lighting upgrade completed in the Western Cape.

R640m Musina Ring Road opens to traffic in Limpopo.

November

R375m Karino Interchange project on the N4 in Mbombela reaches completion.

 

2022/23

September

SANRAL invests R7.2 billion in road infrastructure in the financial year.

 

2023

March

SANRAL receives a Batho Pele Service Excellence and Innovation Award for excellent service delivery.

 

September

R216m Montrose Interchange on the N4 in Mpumalanga opens to traffic.

 

 

SANRAL’s transformation in motion

 

SANRAL’s Transformation Policy is geared towards ensuring that the playing fields are levelled in the construction industry and a meaningful impact is made in all communities where SANRAL projects take place.

SANRAL actively implements transformation through its practical support of SMMEs and the involvement of local labour in all projects. A minimum of 30% of contract value is allocated for the use of SMMEs and/or local companies. In this way many smaller companies have grown and eventually could tender for bigger projects on their own, contributing to the development of major black businesses and black industrialists.

The use of local labour means that valuable rands circulate in poor rural communities affected by SANRAL projects. Community development programmes are included on many of the projects, ensuring that elements  remain behind long after SANRAL and the major contractors have left. This could be in the form of a local road or bridge, pedestrian walkways, school, community hall or a sports field, all aimed at raising the standard of living.

SANRAL’s preferential procurement policy, which came under attack by some big construction companies, is an important instrument for the success of transformation. It is hoped that soon a sustainable and acceptable final policy will be in place that will help especially those who were previously marginalised to grow and be part of this important transformation journey for the entire construction industry.

Central to SANRAL’s mission is the imperative to reduce the dominance of large contractors, which has historically posed a significant barrier to smaller and emerging contractors and consultants seeking opportunities within SANRAL’s projects. By fostering a more inclusive and equitable environment, SANRAL aims to not only accelerate the pace of transformation but also create new pathways for growth and empowerment within the transportation sector.

From livelihoods uplifted to skills gained, the true measure of SANRAL’s impact lies in the words and stories of those whose lives have been positively transformed.

Simphiwe Mhlongo
Subcontractor

By making a bold career change, Simphiwe Mhlongo has been able to improve her own life and provide opportunities for 11 employees.

Formerly an events coordinator struggling to make ends meet, she ventured into construction with the assistance of the South African Women in Construction initiative, establishing Sister’s Brain Construction. Now a subcontractor for two major firms, she’s been able to procure work on the N3 Ashburton Interchange and the associated R103 Pope Ellis Drive upgrades.

Based in Lynnfield Park, near Pietermaritzburg in KwaZulu-Natal, she deeply appreciates SANRAL’s local impact, saying “The best part is that the workers are from the area. This means that locals are getting a chance to uplift themselves. It’s a real blessing to them, as well as to me.”

 

 

Mduduzi Jijana
Company owner

Mduduzi Jijana, owner of the Disability Empowerment Movement, who lives with a disability, is among the many beneficiaries of SANRAL’s N3 highway upgrade. His company employs 13 people and has been installing road signs between Hilton and Pietermaritzburg.

The project has been life-changing. “As people living with a disability, we have shown that we are capable. We no longer rely on grants. We do the actual work,” he says.

 

SANRAL to inject close to R2 billion on roads in the Eastern Cape

SANRAL is expected to inject close to R2 billion into the Dr AB Xuma Local Municipality in the Eastern Cape when it implements its road maintenance projects over the next three years. Two road infrastructure development projects are on the cards: improvements of the R61 National Road between All Saints to Bayiza, as well as improvements of the R61 National Road between Qumanco and eNgcobo. The scope of work will entail the upgrading of roads, bridges and culverts and improving road safety. A minimum of 30% of the project value is to be subcontracted to SMMEs and a minimum of 8% of the project value will be set aside for local labour. The construction tender closed on 8 March 2024 and the projects are envisaged to take place over three years once a contractor is appointed.

 

Opportunities for people with disabilities

The Moloto Road (R573) routine road maintenance and upgrade project has given local businesses the opportunity to participate in tendering for subcontracting work. At a recent stakeholder engagement session about the R573, SANRAL Stakeholder Coordinator Melba Geca explained that “SANRAL is deeply concerned about the lack of involvement of people with disabilities in this massive R573 project. We want to know why, of the 114 people already employed, there are only three with disabilities.” Working together with local municipalities, SANRAL has assisted in establishing Project Steering Committees to ensure that people with disabilities will be involved in its projects. SANRAL has set aside about R130 million to develop SMMEs, with some contracts reserved strictly for people with disabilities.

 

R309 million for partial reconstruction of the R21

The R21 corridor linking Pretoria to Johannesburg and OR Tambo Airport is a priority for SANRAL because of the role it plays in moving people, goods and services. It handles a massive amount of traffic, with an average daily volume of over 45,000 vehicles in each direction, 11% of which is heavy vehicles. SANRAL has announced a R309 million investment for partial reconstruction of 14km of the R21 from the Pomona Road Interchange close to OR Tambo International Airport to the Olifantsfontein Road Interchange in the direction of Pretoria. Work started in February 2024 after a three-month mobilisation period, and will continue over a period of 24 months. The project includes a traffic accommodation plan to carefully manage lane closures and ensure minimal impact during peak traffic hours.

 

SANRAL surpasses goals on Msikaba Bridge

Msikaba Bridge is one of two-mega-bridges on the N2 Wild Coast Toll Road, and has exceeded its contract participation goals (CPG) for targeted enterprises (SMMEs and suppliers). Msikaba Bridge’s CPG for targeted enterprises is a minimum of 30% of the contract value of R1.65?billion. As at November 2023, R553.2?million (107% of the target) had been spent on 157 targeted enterprises: 44 suppliers, 52 service providers and 61 subcontractors. R92.8?million had been spent on wages for local targeted labour — 108% of the 5% CPG target of R86?million, with 453 full-time equivalent jobs created, 391 of these occupied by local persons. This translates into a huge economic impact for Eastern Cape and local communities.

 

Full closure of the N3 in KZN to accommodate blasting near Peacevale

TRAFFIC ADVISORY

Full closure of the N3 in KZN to accommodate blasting near Peacevale

Durban, 2 April 2024 – The N3 in KwaZulu-Natal will be fully closed on 10 April 2024, between the hours of 14h30 and 15h00, to facilitate blasting next to the N3 opposite the Peacevale Interchange. This forms part of the N3 Section 2 realignment project, the South African National Roads Agency SOC Limited (SANRAL) has announced.

“The N3 closure will take place between the M13/N3 split and the Hammarsdale Interchange. Closures will also be necessary on the following secondary roads in the vicinity of the blasting activities:

  • Road at Thousand Hills Street intersection,
  • Sterkspruit Road at Capital Hill Drive intersection and D706 Road accessing Peacevale.

“Our traffic accommodation team with the assistance of the Road Traffic Inspectorate (RTI) will manage and monitor the diversion of traffic during all sessions,” said Jason Lowe, SANRAL’s Eastern Region Project Manager.

The full road closures are proposed to take place as follows:

10 April 2024 Wednesday

14h30 to 14h45 – Close N3 and secondary roads and blast.

14h45 to 15h00 – Clean up any debris on the N3.

15h00 – Reopen N3 and secondary roads for all vehicles.

The R103 will be available as an alternative route during the blast. Substantial delays may however be experienced as the N3 will be fully closed during the period of the blast.

The closure may need to be adjusted depending on weather conditions on the day. If that happens, a second notice with information of the new time will be issued.

“We ask motorists to be patient during the closure and to plan and adjust their trips to accommodate the closure while adhering to speed limits. SANRAL apologises to the motoring public for any inconvenience caused and thanks them for their ongoing patience during road construction,” said Lowe.

 

//Ends