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Deputy Minister of Public Works and Infrastructure Sihle Zikalala addresses delegates at the Gauteng Contractor Development Roadshow, highlighting government support for emerging contractors.
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R300 Million Fund Boosts Contractors

The Department of Public Works and Infrastructure and the Construction Industry Development Board have strengthened support for emerging contractors through a Gauteng roadshow focused on funding, skills and procurement opportunities.

Held at the Emerald Hotel in Vanderbijlpark, the Gauteng Contractor Development Roadshow brought together contractors, government departments, development finance institutions and infrastructure agencies to improve collaboration and expand participation in South Africa’s infrastructure programme.

The initiative forms part of government’s broader strategy to build a stronger, more competitive contractor base capable of delivering infrastructure projects while creating jobs and supporting economic growth.

The event was led by Deputy Minister of Public Works and Infrastructure Sihle Zikalala and Gauteng MEC for Infrastructure Development and Co-operative Governance and Traditional Affairs Jacob Mamabolo.

The roadshow provided practical guidance on public procurement opportunities, compliance requirements, funding mechanisms and business development programmes designed to help contractors grow and compete for larger infrastructure projects.

Speaking at the event, Deputy Minister Zikalala said infrastructure investment should create lasting economic opportunities for local businesses and communities.

“Every infrastructure project is an opportunity to create jobs, grow local businesses, transfer skills and strengthen communities. A capable contractor base is not separate from infrastructure delivery; it is the foundation on which successful infrastructure delivery depends.”

One of the key announcements highlighted during the roadshow was the R300 million Construction Fund, launched in May 2026 through a partnership between the Construction Industry Development Board (cidb) and the Small Enterprise Development and Finance Agency (SEDFA).

The fund has been established to improve access to affordable finance for emerging contractors, enabling them to expand their businesses and participate more effectively in public infrastructure projects.

According to industry data presented during the event, 24% of contractors identify access to finance as one of their biggest barriers to growth, while 53% reported difficulties accessing loans or guarantees during the past year.

Government believes the Construction Fund will help address these challenges while unlocking new opportunities for small and medium-sized construction businesses.

Cash flow also remains a major concern across the industry.

MEC Mamabolo reaffirmed the Gauteng Provincial Government’s commitment to paying contractor invoices within 30 days, recognising that prompt payment is critical to the sustainability and growth of small businesses.

He also encouraged contractors to strengthen financial management, maintain ethical business practices and embrace digital technologies that improve compliance and operational efficiency.

Skills development remains another important pillar of the contractor development strategy.

The cidb confirmed that its new Certificate in Construction Management will officially launch in July 2026 through the cidb B.U.I.L.D Programme, delivered in partnership with the Durban University of Technology, Walter Sisulu University and the University of the Free State.

cidb Chief Executive Officer Bongani Dladla said success should be measured by how many contractors progress into larger, more complex infrastructure projects.

“Success cannot be measured only by how many contractors enter the industry, but by how many are able to grow, progress to higher cidb grades and compete successfully in larger and more complex projects.”

Participants also engaged directly with organisations including SANRAL, the Independent Development Trust, the Department of Water and Sanitation, Rand Water, SEDFA, the Gauteng Office of the Premier, Sedibeng District Municipality, Emfuleni Local Municipality and SARS, gaining valuable insights into upcoming infrastructure opportunities and procurement requirements.

The Gauteng Contractor Development Roadshow forms part of an ongoing national programme to strengthen South Africa’s construction industry by improving access to finance, skills development, procurement opportunities and sustainable business growth.

By investing in contractor development alongside infrastructure delivery, government aims to create more resilient construction businesses capable of supporting long-term economic development, job creation and inclusive growth.

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