MEDIA ALERT

Being held under the theme "Laying the foundation for an equitable construction industry", this event is probably another first for South Africa. In a matter of only a few years the Vukuzakhe (meaning "Rise Up and Build Yourself") Emerging Contractor Programme of the KwaZulu-Natal Department of Transport has moved from strength to strength with more than 17 000 emerging contractors being registered on the department’s data base. These emerging contractors have in turn provided employment to more than 25 000 people in the province.

The main thrust of the programme includes maximising job creation and restructuring contracts in order to secure collective participation by emerging contractors and established contractors within the department’s road contracts. In 2001 the department began to address the training needs of the contractors which has not only enabled them to undertake multi million rand contracts but also to run their businesses profitably.

The growth of Vukuzakhe from a zero budget to contract values of more than R408 million in 2003/2004 is also a truly remarkable achievement. There will be a significant increase both in Local Roads and the African Renaissance Roads Upgrading Programme (ARRUP) budget allocations for the MTEF period 2004/2005 to 2006/2007. This will increase the value of contracts awarded to Vukuzakhe contractors.

The Department will also now adopt a more embracing understanding of Vukuzakhe training needs to include the sponsorship and graduation of black engineers and technicians. The Department is in the process of establishing a new bursary fund which will be administered in consultation with the Vukuzakhe Provincial Council to promote engineering in the black community.

This financial year we will also be launching a new Labour Intensive Road Construction programme. The programme will specifically target youth and Stage 1 Vukuzakhe contractors on a project by project basis. The Department has allocated R25 million towards Labour Intensive Road Construction this financial year and expects to raise significant additional funds from the national Expanded Public Works Programme.

To have progressed from a budget allocation of only R3 million in 1994 for rural access roads to our current budget allocations is something to be proud of. Equally exciting is the fact that, as our budgets for rural roads has increased so too have our budgets to support the training of Rural Road Transport Forums and Vukuzakhe contractors.

The KwaZulu-Natal Department of Transport through its policies and programmes has created new and sustainable jobs in the construction sector while the province has shed jobs in other influential sectors. The scale and multi-year nature of contract opportunities provided through ARRUP roads have allowed us to streamline our support systems to emerging contractors through our Vukuzakhe Emerging Contractor Programme.

• Multi-year contracts now allow Vukuzakhe contractors to approach financial institutions using their contracts as collateral against bank loans.
• We are now finalising our partnership with a major financial institution who have established an independent management company to assist participating contractors with various financial, training and business support systems including access to bulk discounts on materials and plant.
• This institutional arrangement makes provision for an empowerment equity stake for Vukuzakhe contractors in the management company.

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