Construction World

Emerging contractors in the construction industry will now be better able to participate in major projects following a landmark agreement between SANRAL and Barloworld Equipment, the dealer for Cat earthmoving machines and Cat power systems in southern Africa.

The 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.

Agreement a major boost for emerging contractors

SANRAL CEO, Skhumbuzo Macozoma (left) and Barloworld Equipment SA CEO, Emmy Leeka.

“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 construction sector,” says Skhumbuzo Macozoma, the Chief Executive Officer of SANRAL.

“Through our co-operation with Barloworld Equipment we are promoting the growth of black business and taking positive steps to support a sector with immense potential for growth and job creation.” This is the second Memorandum of Understanding between SANRAL and a top industrial company to support the growth of emerging contractors.

Emmy Leeka, CEO of Barloworld Equipment southern Africa says this is 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.

“This will enable us to deliver on our incubation and empowerment commitments and work with SANRAL towards the greater goal to transform the engineering and construction sectors,” says Vasco Santos, Executive Head: Construction, Rental & Used at Barloworld Equipment.

The Memorandum of Understanding, signed in Sandton today sets out future cooperation between SANRAL and Barloworld Equipment across a broad range of activities, including providing small contractors in the SANRAL supply chain access to equipment, financing and training.

Barloworld Equipment will set up structures which will enable contractors to benefit from options to lease or rent equipment. The company will also offer training to owners, employees and maintenance staff. Together, SANRAL and Barloworld Equipment will promote partnerships in the fields of training, fleet management, marketing and communication.

Macozoma says the partnership is proof that SANRAL’s efforts to transform the construction sector and promote fair competition are delivering results. Lack of access to sophisticated machinery and equipment is a major barrier for small contractors and prevents them for participation in large construction tenders.

“By working together with established companies, we can remove these barriers and enable black-owned companies and enterprises owned by women and the youth to participate on a level playing field,” he says.

“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 part of the supply chains on larger projects.”


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