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SANRAL’s Contractor Development Programme strengthens pathways for black-owned businesses in construction

Caption: SANRAL’s Acting Head of Stakeholder Relations, Siphiwo Mxhosa facilitated questions from contractors attending the CDP session in Midrand, Gauteng

Midrand, 7 November 2024 – The South African National Roads Agency SOC Limited (SANRAL) has urged small- to medium-sized black-owned construction companies to take advantage of its new Contractor Development Programme (CDP).
SANRAL on Thursday engaged with more than 370 representatives of construction companies in Midrand, Gauteng, on the final leg of a countrywide roadshow which started in October.

SANRAL’s Chief Corporate Affairs Officer, Lehlohonolo Memeza says the programme aims to improve the performance of grade 5CE to 9CE contractors registered with the Construction Industry Development Board (CIDB). The programme also aims to increase the capacity of grade 5CE to 9CE contractors, as well as equity ownership, sustainability and quality of work produced. Through the CDP, SANRAL will create a unique platform for grade 5CE to 9CE contractors to maximise participation on its projects. The programme prioritises skills development, training, mentorship and financial support to address the challenge of ‘the missing middle’ CIDB grades.

“This is an important initiative which SANRAL is introducing to help black (African, Coloured and Indian) contractors to ultimately become main contractors on SANRAL’s construction and maintenance projects. Through this programme we intend to create an environment for black contractors to be competitive and grow,” said Memeza.

“This initiative is a vital step toward levelling the playing field, ensuring that opportunities for growth and development are accessible to all. Beyond engineering and technical work, we also aim to transform the full value chain by involving suppliers in road construction through the Black Industrialist Scheme.” she said.

SANRAL’s Acting Head of Stakeholder Relations, Siphiwo Mxhosa, said South Africa’s construction industry was one of the most important and biggest in the economy, and SANRAL would use the Contractor Development Programme to advance economic transformation.

“SANRAL recognises that it is in the best interest of our country that we embrace and advance transformation. This should not only be driven by SANRAL but by everyone in the industry. It is our intention to create balance and ensure that all of us, black and white, can share in the wealth of our country, specifically in the road construction industry,” said Mxhosa.

SANRAL’s 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 in SANRAL projects, gaining necessary experience and support.
? Provide training, mentoring, financial and other forms of support to contractors participating in the programme.

Memeza noted that SANRAL was consulting stakeholders on the CDP and would present the document to the SANRAL Board later in November 2024.

“Once the board has approved the programme, we will then select qualifying entities to participate in the programme for a minimum of three years and a maximum of five years, which will be followed by an assessment for a further two years after exiting the programme,” said Memeza.

The selection criteria will be focussed on but not limited to:
• Entities that have been in business for 5 to 10 years
• Entities owned by the designated groups
• CIDB 5 – 7 (within limited national SOE project experience)
• CIDB 8 – 9 (within limited national SOE project experience)
• Entities that have successfully executed projects of their CIDB grading in the last 3 years
• Entities in good standing with SARS

Progress Hlahla, SANRAL’s Northern Region Manager said: “SANRAL is an agency entrusted with multi-billion-rand projects that shape South Africa’s infrastructure. To realise our transformation vision, we need grade 5CE to 9CE contractors to be at the heart of our projects, driving growth and innovation across the sector.”

“The CDP is about ensuring that these billions of rands are widely distributed. We also aim to change the perception of grade 5CE to 9CE contractors, encouraging them to see themselves as more than just subcontractors. Through other initiatives, such as the ‘Taking SANRAL to the People’ and information sessions, we also seek to develop grade 1CE to 4CE contractors, enabling them to join this program in the future. As our network expands from 24,384km to even more by 2030, with additional roads being handed over to SANRAL, contracting opportunities will be widely distributed,” said Hlahla.

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Issued by FTI Consulting on behalf of SANRAL. For editorial content or additional information contact Lwando Mahlasela on 082 440 5305 or pressoffice@nra.co.za