The development of small-, medium- and micro-enterprises (SMMEs) forms part of SANRAL's broader socio-economic development strategy and the agency always looks for ways to empower local communities to enjoy the long-term economic benefits of SANRAL projects, especially in routine road maintenance (RRM) contracts.

What is SANRAL doing to develop SMMEs in the North West?

The development of SMMEs as part of the maintenance of national roads is one of our main priorities. The RRM programme was established on the national road network to offer various opportunities for the development of SMMEs – including providing training, mentoring, counselling and advice to SMMEs, which forms part of our RRM contracts. At the moment SANRAL manages approximately 2 400km in the North West and every metre of every kilometre has to be maintained, which provides opportunities for more SMME participation.

How important is this development for the SMMEs?

SMMEs are key drivers of economic growth and job creation in the North West. It is a condition of tender that a major portion of the works is set aside for SMMEs. The proportion of works (either 80% or 60%) to be set aside for SMMEs is dependent on the size of the B-BBEE participation of the main contractor. Ninety percent of the works set aside for SMMEs is carried out by black-owned companies. Subcontractors with minimal capital cost-, technical- and entry-requirements, provide an ideal incubator for economic empowerment, development and training.

What types of projects does SANRAL award to SMMEs in the province?

Some of the work packages generally awarded to SMMEs include:

• General maintenance and repairs (road signs, guardrails, drainage structures)
• Debris and litter collection
• Vegetation control (grass cutting, chemical
• Fence maintenance and upkeep
• Animal control

What are the challenges facing North West SMMEs?

Some of the challenges include:

• CIDB registration and requirements
• The impact of the formation of joint ventures with other contractors
• Collating the correct documentation and completing it with precision
• The importance of other legal requirements such as tax clearance certificates and B-BBEE compliance
• The competitive nature of tendering
• Risks such as labour and community expectations
• Access to finance (start-up capital and cash flow)

Construction work is awarded through a tender process. Tenders for subcontracting are advertised at local municipalities, community halls (notice boards), on the SANRAL website and through local media (newspapers).

SANRAL's procurement philosophy is compliant with government legislation, i.e. broad-based black economic empowerment, preferential procurement regulations and legislation aimed at advancing transformation.

Local SMMEs will have an opportunity to benefit from the maintenance needs of SANRAL RRM contracts in the North West. Visit the SANRAL website www.sanral.co.za for more information.

Questions answered by SANRAL Project Manager Thabo Mahlakwana