Pilot Crushtec and SANRAL enter into MoU to promote transformation and
empowerment in South Africa
SANRAL has taken yet another step to open up the construction industry to small players, easing the barriers to entry for black companies.
South Africa has the longest and best road network on the continent. The continuous expansion and maintenance thereof generates billions in revenue for the construction industry and employs tens of thousands of individuals. The barriers to entry for newcomers wishing to take advantage of this lucrative sector are, however, restrictive due to the high cost of capital equipment, access to funding and lack of expertise in the field.
It is with this in mind that Pilot Crushtec and SANRAL have signed a memorandum of understanding (MoU) that will, among others, give small to medium enterprises access to expertise and machinery required to tender and execute major SANRAL projects usually the domain of larger corporate entities.
According to Pilot Crushtec sales and marketing director Francois Marais the MoU is designed to make a tangible difference to South Africa through transformation and empowerment. “We want toleverage our existing partners, platforms and expertise to enhance the financial service offering and access to finance for emerging contractors and provide sustainable solutions both financially and technically.
“It is our hope to create relationships with the smaller companies and offer advice on feasible solutions for purchase, rental, leasing etc of crushing, screening and other related materials handling equipment.
“It is our intention, with MoU’s like this, to open up the industry to new participants and remove many of the barriers that prevent companies owned by black, women and youth entrepreneurs tocompete effectively against the entrenched players in the construction sector,” says SkhumbuzoMacozoma, the Chief Executive Officer of SANRAL. “We hope that, via our co-operation with Pilot Crushtec we are able to promote growth of black business and take constructive steps to support a sector that has immense potential for growth and job creation.”
Macozoma says the partnership is proof that SANRAL’s efforts to transform the sector and promotefair competition are delivering results. “Lack of access to sophisticated machinery and equipment is a major barrier for small contractors and prevents them from participating in large 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.
“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 thesupply chains on larger projects.”
“We absolutely recognise the importance of cooperative partnerships like this to create sustainabilityand broaden our industry reach,” says Marais. “From now on, small contractors will be able to purchase and/or lease crushing and screening machinery equipment which enables them to meet the quality standards required for aggregate in the road construction industry. By collaborating on issues of financing, buy- back options, training of small contractors, asset management and utilisation of crushing and screening machinery equipment we can ensure a vibrant, robust industry for many years to come.”