SANRAL launches Contractor Development Programme to support black contractors and further transform the construction industry

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SANRAL launches Contractor Development Programme to support black contractors and further

transform the construction industry

Ms Lehlohonolo Memeza, SANRAL’s Chief Corporate Affairs Officer, addressing stakeholders in

Bloemfontein on the Contractor Development Programme.

Bloemfontein, 23 October 2024 – The South African National Road Agency SOC Limited (SANRAL) has on Tuesday, 22 October 2024, continued a countrywide Contractor Development Programme to support and help black (African, Coloured and Indian) contractors to ultimately become main contractors on the roads agency’s road construction and maintenance projects.

SANRAL’s Chief Corporate Affairs Officer, Lehlohonolo Memeza, introduced the Contractor Development Programme (CDP) to industry players in Bloemfontein and Welkom. The CDP is a new initiative by SANRAL which aims to increase the capacity, equity ownership and sustainability of

emerging contractors in Construction Industry Development Board (CIDB) grades 5CE and higher. Grade 5CE companies have typically completed projects of between R1.5 million and R3 million.

Addressing the Contractor Development Programme event in Bloemfontein, Ms Memeza said that by investing in the development of contractors, SANRAL is aiming to empower black businesses, especially those from underrepresented groups such as women, youth, persons with disabilities and military veterans. SANRAL aims to create an environment where contractors participating will obtain continuous work through a competitive process.

“SANRAL wants emerging contractors to thrive. Our Contractor Development Programme is a vital step toward levelling the playing field, ensuring that opportunities for growth and development are accessible to all,” said Ms Memeza.

“By prioritising these targeted groups, SANRAL is contributing to the transformation of the construction industry and creating opportunities for meaningful economic participation.”

Ms Memeza added: “The strength of our infrastructure lies in the capabilities of our contractors. SANRAL’s commitment to contractor development reflects our belief that by empowering black businesses, we are not only enhancing our projects but also contributing to economic stability and community upliftment.”

The Contractor Development Programme also aims to:

Create a unique platform for CIDB grades 5 to 7 to maximise participation and skills development, addressing the challenge of ‘the missing middle’ CIDB grades.
Include potentially emerging (PE) status in SANRAL’s tender documents.
Develop a platform for recently upgraded CIDB grades 8 and 9 to participate on SANRAL projects, gaining necessary experience and support.
Provide training, mentoring, financial and other forms of support to contractors participating in the programme.

“At SANRAL, we understand that successful projects begin with skilled hands and educated minds. Our Contractor Development Programme is designed to equip emerging contractors with the tools, knowledge and support they need to excel in a competitive industry, fostering a culture of excellence in construction,” said Ms Memeza.

Tim Motshumi, from Jua Developers, expressed his appreciation and thanked SANRAL for this initiative and continued support of black contractors. “This presentation sounds like music to my ears. Please make sure that this programme is successful. I am very happy with what I have heard here today. SANRAL is respected for treating their subcontractors well and paying them on time. You are not perfect but if this programme presented here today succeeds, all contractors can benefit,” said Masenya.

Please click here or cut and paste in your web browser for a soundbite from Ms Lehlohonolo Memeza, SANRAL’s Chief Corporate Affairs Officer: https://we.tl/t-G4HpiSun8S

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FURTHER BACKGROUND:

The CDP also aims to improve the financial, technical and managerial skills of participating contractors, ultimately leading to an upgrade in their CIDB grading and long-term sustainability.

The CDP will be implemented across various SANRAL projects, with a focus on both road construction and routine maintenance work. Contractors selected for the programme will be supported through a combination of practical training, mentorship and financial assistance.

One of the key features of the CDP is the inclusion of an interest-free loan from SANRAL, amounting to between 15% and 20% of the contract value. This funding will help contractors manage their working capital needs, particularly at the start of projects. Additionally, SANRAL has established partnerships with various funding institutions and equipment suppliers to provide further support to contractors.

In terms of project participation, SANRAL’s procurement policies will ensure that selected contractors are allocated projects within their province of residence, or, if necessary, in neighbouring provinces. Each contractor will participate in the programme for a minimum of three years, with the opportunity for a maximum of five years.

As with all SANRAL projects, the CDP will be subject to rigorous monitoring and evaluation. SANRAL is committed to ensuring that the programme delivers on its transformation agenda, and that participating contractors are able to graduate from the programme with enhanced skills, financial stability, and a stronger CIDB grading.

SANRAL will establish a steering committee to oversee the implementation of the CDP, comprising representatives from engineering, procurement, finance, legal and transformation departments. This committee will ensure that the programme remains aligned with SANRAL’s strategic objectives and that contractors receive the support they need to succeed.