Agreement breaks new ground for blacks in construction sector

Image: 123RF/khunaspix

Entrepreneurs in the construction industry have been given a boost to participate in major projects through a landmark agreement between the SA National Roads Agency (Sanral) and Barloworld Equipment, the dealer for Cat earthmoving machinge and power systems in Southern Africa.

In the agreement, Cat dealership will give black-owned enterprises greater access to equipment, financing and training which will enable them to tender more effectively on road construction projects managed by Sanral.

“This will open up the industry to new participants and remove many of the barriers that prevent companies owned by black, women and youth entrepreneurs to compete effectively against the entrenched players in the constructioin sector. We are promoting the growth of black business and taking positive steps to support a sector with immense potential for growth and job creation. Through our cooperation with Barloworld ,” Skhumbuzo Macozoma, Sanral CEO, said.

The memorandum of understanding between the Sanral and Barloworld Equipment was signed on Wednesday at the Barloworld offices in Sandton.

Emmy Leeka, CEO of Barloworld Equipment Southern Africa, said the memorandum was an opportunity for both companies to contribute in the empowerment of emerging contractors in the construction industry.

“We have built valuable partnership with black-owned enterprises through the years and this initiative will take our activities to a higher level,” said Leeka.

The memorandum of understanding sets out a future of cooperation across a broad range of activities, including providing small construction companie in the small contractors which in Sanral supply chain access to equipment, financing and training.

Barloworld Equipment will set up structures which will enable contractors to benefit form option to lease or rent equipment. The company will also offer training to owners, employees and maintenance staff from the small construction companies.

The memorandum is expected to go a long way in removing barriers for black owned entrepreniers in the construction sector, particularly businesess owned by women and youth.

“This step will, no doubt, have a ripple effect within the construction and engineering industries and also benefit job creation within local communities where smaller enterprises now become parat of the supply chains on larger projects,” Macozoma said.

Barloworld Equipment is a division of Barloworld Limited and the dealer of Cat earthmoving machines and Cat power systems in Southern Africa. 

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