PRETORIA – The ability of emerging contractors in the construction industry to participate in major projects has received a boost from a landmark agreement reached between the SA National Roads Agency (Sanral) and Barloworld Equipment.
The company is part of the listed distribution group and the Southern African dealer for Caterpillar earthmoving and power systems.
In terms of a memorandum of understanding (MoU), black-owned enterprises would obtain greater access to equipment through rental and leasing options, financing and training from Barloworld Equipment to enable them to tender more effectively on road construction projects managed by Sanral. This is the second MoU between Sanral and a top industrial company to support the growth of emerging contractors.
Sanral in July signed a similar MoU with listed Bell Equipment.
Emmy Leeka, the chief executive of Barloworld Equipment Southern Africa, said the agreement was an opportunity to contribute to the empowerment of emerging contractors in the construction industry. “We have built valuable partnerships with black-owned enterprises through the years and this initiative will take our activities to a higher level,” he said.
Skhumbuzo Macozoma, the chief executive of Sanral, said the agreement would open up the industry to new participants and remove many of the barriers that prevented companies owned by black, women and youth entrepreneurs from competing effectively against the entrenched players in the construction sector. “Through our co-operation with Barloworld Equipment we are promoting the growth of black business and taking steps to support a sector with immense potential for growth and job creation.”
Macozoma said the lack of access to sophisticated machinery and equipment was a major barrier for small contractors and prevented them from participating in large tenders.
The partnership was proof that Sanral's efforts to transform the construction sector and promote fair competition were delivering results, he said.