New strategy will transform roads sector

New horizon set for SANRAL’s long-term growth

Transformation in the construction industry has been taken major steps forward with the launch of SANRAL’s new guidelines to advance the broad participation of black-owned contractors and suppliers.

The new transformation strategy was highlighted by Transport Minister, Joe Maswanganyi, at a function in Rosebank, Johannesburg attended by representatives from the construction and engineering industries, the public sector and the media.

Minister Maswanganyi called for the accelerated transformation of the transport sector and to ensure the youth and women are actively involved in job creation and entrepreneurship development.

Skhumbuzo Macozoma, CEO of SANRAL, said it is committed to go beyond the minimum requirements for transformation set by existing legislation and the regulatory framework. SANRAL will, in future, use its procurement and supply chain processes to speed up transformation and break down monopolies.

“We play a critical role in the construction and engineering sectors and are keenly aware of the impact that our supply chain processes have on economic transformation, job creation and the lives of millions of people across South Africa,” says Macozoma.

The detailed strategy sets clearly defined targets for the participation of black contractors, professionals and suppliers in all projects commissioned by SANRAL.

The transformation policy was approved by the SANRAL board and will now be canvassed with stakeholders, including national and provincial government, the engineering and construction sectors, organised labour and existing suppliers.

Future contracts will set requirements for the utilisation of labour sourced from local communities and favour the procurement of locally-developed technology, materials and equipment.

The policy covers the entire spectrum of SANRAL’s procurement processes and throughout its business value chain. It proposes the following:

  • On capital projects SANRAL will only do business with companies that are at least 51% black-owned and with a minimum B-BBEE Level 2 rating
  • A maximum number of 15 tenders per year will be issued to a single company and contractors will be required to make use of SANRAL-approved sub-contractors
  • Similar provisions will be applicable to road maintenance projects and special attention will be given to the procurement of material from black suppliers
  • Concessions to manage and operate toll roads will only be awarded to companies with a 51% black ownership
  • The transformation policy will apply to all sub-contractors in the fields of real estate development, information communication and technology, finance and audit and professional services.

“We accept the responsibility to use our procurement and supply chain processes to transform the construction industry,” says Macozoma. “We are confident that it will be a catalyst for a much-broader-based participation of black-owned companies in the sectors.”

For more on the draft Transformation Policy, go to: