Subcontracting brings major opportunities

In line with SANRAL’s commitment to the economic development of black businesses, at least 30% of the contract value of each tender is subcontracted to small, medium and micro enterprises (SMMEs).

Over and above the substantial subcontracting opportunities, collectively worth many billions of rand, the larger of SANRAL’s projects are a platform for large-scale job creation, skills development, knowledge transfer and poverty relief, especially in the rural communities of South Africa. The significantly long construction periods afford sustained economic opportunities for these communities.

When SANRAL’s separately funded community development projects are factored into the equation, the number of SMME opportunities as well as training and job opportunities for ordinary community members increases significantly, thus tangibly reducing unemployment, inequality and poverty,

“While we are alive to the cries from our industry for more projects to be put out to tender, we are equally committed to fair and transparent procurement processes, as required by law, but also the need to prioritise the economic development of those previously denied opportunities to SANRAL projects.

“We also have to respond to the need, as admonished by the Constitution, to advance persons or categories of persons disadvantaged by unfair discrimination. Moving forward, striking a balance between safeguarding our big and established companies and creating opportunities for black businesses at higher and lower CIDB grades will be a material deliverable within SANRAL,” said Chairperson of the Board of SANRAL, Mr Themba Mhambi


Stakeholder engagement sessions are also prioritised to ensure that local business and job-seekers have access to relevant information that will enable them to pursue and participate in the economic opportunities flowing from tender awards and projects. Through the establishment of Project Liaison Committees (PLCs), fairness and transparency in all appointments of subcontractors and engagement of local labour is ensured.

“We want to see meaningful transformation that truly changes people’s lives for the better and not simply impressive statistics,” said Mhambi