SMMEs Along N2 Wild Coast Road Project in Eastern Cape Optimistic About Accessing Finance for Economic Participation

The South African National Roads Agency SOC Limited (SANRAL) is taking significant steps to bolster small, medium, and micro enterprises (SMMEs) by providing them with essential engineering tools, facilitating their entry into the construction sector. Recently, SANRAL convened an enlightening information session for SMMEs at the Lusikisiki Resource Centre in the Eastern Cape, where representatives from various sectors of the economy shared insights on available assistance for SMMEs.

Highlighting the importance of this initiative, SANRAL’s District Office Manager, Nwabisa Gxumisa, expressed satisfaction with the outcome of the session, stating, “We have a situation where SMMEs have challenges with cash flow. I am happy to see the SMMEs happy. They understand that this was their session to find out how they can benefit from this collaboration.” Gxumisa reiterated SANRAL’s commitment to transforming the construction industry through collaborative efforts with economic drivers.

Emphasizing the significance of compliance with labor regulations, Fezile Xhongo from the Department of Employment and Labour underscored the necessity for businesses to adhere to the basic conditions of employment. Xhongo stressed,

“Inspectors have every right to visit any business without obstruction, and businesses must answer all the questions asked.” He urged businesses to clearly outline remuneration packages for employees, whether based on minimum wage standards or bargaining council agreements.

Bell Equipment, a leading plant manufacturer, echoed the sentiment of empowering SMMEs with access to yellow machinery. Fortune Matsobane, Consultative Sales Advisor Executive at Bell, explained, “It would empower them to own the machinery, as it is capital investment.” Matsobane announced plans to revise approaches with SANRAL to facilitate SMMEs’ access to machinery, recognizing them as game-changers in the industry.

One such success story is Nogolide Zokufa, who transitioned from running a bed-and-breakfast establishment to leasing yellow fleet equipment to construction companies after attending SANRAL’s sessions. Zokufa remarked,

“Bell opened my eyes through these sessions… Today I’ve hired a Tractor-Loader-Backhoe and an excavator out to a company that tendered for the N2WCR Package 5 between Msikaba and Mtentu bridges.”

Standard Bank also extended its support to SMMEs by offering funding opportunities for various banking needs. Rebecca Mbalo from Standard Bank disclosed, “We can assist as long as you have a contract, even on the asset side. We have a credit appetite for SMMEs.” Mbalo assured that Standard Bank is accessible to all, irrespective of existing client relationships, with a focus on aiding SMMEs in leveraging long-term contracts for financial stability.

Overall, the session served as a platform for SMMEs to inquire about financial packages, ensuring equitable enforcement of labor laws, and ultimately fostering an environment conducive to their growth and success in the construction sector.