A Historic Moment in South African Construction
"At 10hr00 today a historic signing of a Mentorship and Development Agreement between WBHO, Motheo Construction Group, Fikile Construction and Edwin Construction took place. Through the 7 year programme Motheo and the others are to take on board 12 other Black companies and together will benefit from 25% of WBHO's annual turnover, be provided with guarantees and working capital support by WBHO - to allow our businesses to flourish to another level. Thanks to the BBCBE and SAFCEC for facilitating!" Dr. Thandi Ndlovu, CEO, Motheo Construction Group.
WBHO's South African turnover in building and civil engineering is about is about R11 billion per annum and can be conservatively expected to grow to approximately R15 billion over the next 7 years. WBHO's commitment in terms of the agreement with Government and now with Motheo, Fikile and Edwin is that the equivalent of 25% or approximately R4 billion per annum will be executed by the 3 contractors. As a result, their turnover will increase substantially per annum making them major players in the construction sector.
Motheo will continue to run it's business with WBHO assisting financially with guarantee facilities and working capital, administratively, with project budgeting, tendering, reporting and strategic planning and operationally, but advising and assisting construction site management.
The agreement and the Settlement Agreement with Government signed in October, are a result of a collaboration between the PICC (Presidential Infrastructure Coordinating Committee), SAFCEC (South African Forum of Civil Engineering Contractors), BBCBE (Black Business Council for the Built Environment) and the 7 listed construction companies. The Settlement Agreement has taken 3 years to consummate and the cooperation between Government, black business, black owned contractors and the established contractors in developing this agreement, bodes well for the future in which a united and non-racial effective and efficient construction industry will emerge.
In addition to this mentorship initiative, WBHO will make a payment over the next 12 years of R244 million to a Fund controlled through Treasury, which will provide bursaries, artisan training, skills transfer, rural development, secondments of engineers, project managers and others to improve public service delivery of infrastructure.
A truly history day.
