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Zikalala flags failure of contractor-development pipeline

Zikalala flags failure of contractor-development pipeline

Update: 2025-11-14
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Public Works and Infrastructure Deputy Minister Sihle Zikalala has raised concern about ongoing systemic problems in South Africa's contractor-development programmes, warning that fewer than 36% of contractors enrolled in government support initiatives are progressing beyond the initial stage.

Speaking at the 2025 National Construction Summit, in Ekurhuleni, on November 14, he said evidence from recent monitoring reports showed that delays, fragmented implementation and funding gaps continued to undermine emerging contractors despite extensive training efforts.

Zikalala cited findings from the Construction Industry Development Board (CIDB) 'Construction Monitor Report', noting that provincial case studies revealed persistent obstacles in the contractor-development pipeline.

He said "systemic challenges are still there", including low progression rates, inconsistent programme roll-out and limited post-training support.

He emphasised that many participants in the National Contractor Development Programme continued to struggle to enter the market after completing their training.

He said payment delays and funding gaps remained major obstacles across departments, further weakening the effectiveness of the development programmes.

Zikalala added that contractors frequently reported that they were trained but still unable to secure work.

"Contractors say, 'We have been trained through the BUILD Programme, we have been trained and taken through the Vuk'phile Programme, but after these programmes we get no jobs. We get nothing - no way to practise and show our skills'," he said.

Zikalala said the department intended to strengthen the structure and implementation of the BUILD Programme to provide more practical opportunities for emerging contractors.

He said R300-million had been allocated through the programme, including financial support. Competency assessments for 1 000 contractors had already begun, and roadshows were being undertaken with the CIDB to engage small contractors and improve programme effectiveness.

Zikalala also welcomed the recognition of the first cohort of contractors certified through the Construction Management System, noting that the department would ensure these contractors were supported in accessing clients and opportunities within government.

"We are proud that, today, the first cohort of certified contractors is being recognised. These contractors have undergone Construction Management System training and certification," he said.

He linked the challenges in contractor development to the broader national infrastructure agenda. He noted government's adoption of the National Development Plan and development of the National Infrastructure Plan 2050 to support long-term, infrastructure-led growth.

Zikalala also referred to the Medium-Term Budget Policy Statement delivered on November 12, noting the introduction of new guidelines on unsolicited bids from the private sector, adjustments to the Budget Facility for Infrastructure to allow four bid windows a year, and the launch of a new infrastructure bond.

Although he welcomed these measures, he said the primary objective remained improving the infrastructure pipeline and ensuring coherent delivery.

Zikalala confirmed that Infrastructure South Africa would remain the single point of entry for national infrastructure coordination. He also commended efforts to address corruption in the sector and restated the need to ensure that corrupt companies and contractors continued to be blacklisted.

He said professionalising the public works sector remained a priority, with the Council for the Built Environment working to strengthen capacity. This included efforts to ensure that development initiatives improved the quality and consistency of infrastructure delivery nationwide.

Zikalala also confirmed that the Integrated Social Facilitation Framework, developed from a 2021 Cabinet concept, had now been fully endorsed and legally vetted as a national policy instrument. He sai...
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Zikalala flags failure of contractor-development pipeline

Zikalala flags failure of contractor-development pipeline