SANRAL takes high road to transformation

SANRAL recently took a bold initiative to make its draft transformation policy public. During
October to December 2017, it discussed this policy in great detail with internal and external
stakeholders, including the construction and engineering sectors and other related industries. The
final version will be published in 2018 to complement its long-term strategic vision, Horizon 2030.

What sets SANRAL’s new policy apart from other transformation initiatives is that it is proactive,
implementable and sets realistic and achievable goals. It covers all aspects of its business, from
major projects to professional services.

As a first step to speed up transformation, SANRAL has committed itself to breaking down
monopolies in the supply chains of materials, equipment, technologies and procurement and to open
the sector to broad-based participation by black South Africans.

It commits itself to exceed the minimum levels set by the prevailing legislative and regulatory
frameworks. It identifies 10 subsectors of business that cover all of SANRAL’s activities and set clear
and reachable goals for each sector.

On capital projects, for example, it states that it will only do business with contractors that are a
minimum 51% black-owned with at least 30% management control by black people and Level 2 B-
BBEE rating. This policy will also apply to consultants and established suppliers whose annual
turnovers exceed R50m.

No company will receive more than 15 tenders in a year, with a further limitation of three per province.

To ensure a level playing field in the industry, SANRAL will enter into empowerment agreements with
entities at the top of the supply chains for construction material, equipment and supplies. Such
agreements will be broad-based in nature and designed to benefit local communities within the areas
where construction activities will take place.

Ismail Essa is SANRAL’s Head of Transformation

Ismail Essa is SANRAL’s Northern Region manager