Address by Minister of Transport, Sindisiwe Chikunga (MP) on the occasion of the South African National Roads Agency, SANRAL’s 25th Year Anniversary
Theme: Siyakha…We Are Building a Better Transport Infrastructure to Grow South Africa Together” Celebrating 25 Years of Engineering Excellence
Board Chairperson, Mr. Themba Mhambi
Members of SANRAL Board
Chief Executive Officer, Reginald Demana
Director General, Adv. James Mlawua
Deputy Director General, Mr. Chris Hlabisa and DDG’s Present
Chief of Staff, Ms. Zandile Mthembu
Special Advisor, Mr. Lawrence Venkile
Distinguished guests,
Ladies and Gentlemen,
A little over a month ago, I stood not far from this venue and addressed the BRICS Business Forum, where I told businesspeople, government officials, and key players in the construction and logistics industries from around the globe that South Africa is not only open for business, but that you will be doing business with a world-class, innovative, and one of the leading roads infrastructure construction agencies.
I informed them that SANRAL is the preeminent roads agency not only on the African continent but also globally, where it is already competing with the finest in the world. I shared with them the numerous world-class projects that have been delivered to our people in all parts of our country and how SANRAL has become the backbone of our country's economic architecture, as well as the bedrock of our country's socio-economic development agenda, which has resulted in millions of previously marginalized, ignored, and economically excluded people being embraced, included, and allowed to flourish in their communities.
Ladies and gentlemen, SANRAL deserves praise for this singular act of economic transformation.
Programme Director,
Tonight, we are gathered to commemorate SANRAL's 25th birthday. We are here to acknowledge, recognize, and commend the outstanding work accomplished by this organization. This is one of the best-functioning state-owned businesses in the country as a result of the dedication of numerous women and men who have worked assiduously and conscientiously on a daily basis.
While recognizing SANRAL's outstanding and world-class operational work, there is one aspect of SANRAL's operations that goes almost unnoticed. SANRAL transforms lives. SANRAL provides optimism. SANRAL invigorates. SANRAL facilitates a new future. SANRAL constructs vital infrastructure connecting communities, municipalities, and villages.
The national government has responded to the desires of the people and communities by investing in these initiatives. The various infrastructure developments within the nation are intended to improve the lives of our citizens. From KZN into the Free State, into the Eastern Cape, Gauteng, Western and Eastern Cape and Mpumalanga, National Government is strengthening the economic backbone of these provinces by investing in enormous infrastructure projects.
These economic corridors will facilitate the flow of commodities, products, and services between the port and the provinces. As a government, we are unwavering in our commitment to develop these regions in order to stimulate local economic activity, thereby contributing to economic revitalization throughout the nation.
Ladies and Gentlemen,
In 1998, when SANRAL was established as the national roads agency from the Chief Directorate: National Roads, no one could have predicted the organization's phenomenal growth. After twenty-five years, SANRAL has come to play an important role not only in the construction and maintenance of roads, but also in the way it is using its resources to help transform our country economically and socially, as well as helping to pull our country out of an economic recession that has little to do with our policies and more to do with how global events have affected our country.
You, the employees, contractors, and associates of SANRAL, have demonstrated what our country and government are capable of by constructing incredible road infrastructure across the entirety of South Africa.
Programme Director,
SANRAL has consistently fulfilled its mandate to finance, build, and maintain South Africa's national roads, which total more than 23,500 kilometers at present.
Some of you were present at the beginning of this journey 25 years ago. You have all contributed to making SANRAL the preeminent organization it is today. And I would also like to thank everyone who has partnered with us on this voyage.
SANRAL was created by the government and continues to operate as a state-owned enterprise, with me, the Minister of Transport, serving as the sole representative of our sole shareholder, the South African government. Therefore, it is essential to comprehend that SANRAL will take its cues from the national government and work in a manner that promotes the national government's values, vision, programs, and priorities.
Distinguished Ladies and Gentlemen,
One of the primary responsibilities of our democratically elected national government is to equalize our society, reduce unemployment, eliminate inequality, and eliminate poverty. As a government agency, SANRAL is required to continually assess its contribution to eradicating inequality, unemployment, and poverty in order to determine its effectiveness.
Next year marks the 30th anniversary of our democracy. Many of you here would be familiar with the struggle of our people against apartheid. Under apartheid, only the white minority benefited from the economy, while the vast majority – more than 80% of the population – who happened to be black, were relegated to the margins of the economy, forced to work as laborers and performing primarily manual labor, while positions such as company CEOs or even many professional positions were denied to us.
Programme Director,
Today, the leadership of SANRAL, at both the Board and managerial levels, is virtually representative of our country's population. I see predominantly black women in the Board of Directors and in senior management positions. These achievements should not be taken for granted.
This is what I mean when I say that SANRAL has been given a mandate that extends beyond roads. Yes, we are attempting to build the most advanced roads in terms of technology and engineering, but we have also realized that state-owned companies can assist the current government in redressing historical imbalances. The triple threat of inequality, unemployment, and destitution constitutes one of South Africa's greatest challenges.
Roads contribute significantly to the growth of economies. It connects people from various provinces or countries, thereby contributing to economic growth. But we believe we must go further and examine how we can use the construction and maintenance of roads to address the legacy of segregation, which is still with us thirty years later.
Consequently, SANRAL's transformation policy aims to maximize the involvement of contractors, suppliers, and professionals in all SANRAL-commissioned initiatives. It will dismantle supply chain monopolies and guarantee widespread black South African participation in SANRAL projects.
Ladies and Gentlemen,
This will be accomplished by facilitating the utmost participation of local communities in projects within their living areas. Importantly, the roads agency will ensure the rapid development and growth of black enterprises in the construction industry and support the full participation of women, young people, people with disabilities, and other formerly marginalized groups.
SANRAL must ultimately benefit all South Africans in an inclusive manner. We will accomplish this by collaborating with all of our constituents, including the Board, Management, large construction firms, black construction industry players, and South Africans from all walks of life.
Consequently, SANRAL has adopted transformation as one of its guiding principles.
Programme Director,
We cannot continue to enable nearly one-third of our population to be unemployed. According to the World Bank, our country is the most unequal in the world, and ten percent of the population possesses eighty percent of the wealth. This cannot continue. The disparity between wealthy and poor is simply too great.
There have been a few obstacles to SANRAL's transformation initiatives recently. As a government, we are aware that SANRAL's transformation policies and preferential procurement policies are viewed as a threat by corporations that believe the economic status quo in South Africa should continue as if the country had not become a democracy in 1994. We cannot proceed as though apartheid has never ended.
We support and uphold SANRAL's policies, which recognize the necessity and significance of promoting transformation in the public infrastructure development space. Equally, we value the role that large construction companies play in our economy and our nation as a whole. The claim that the government or SANRAL wish to eliminate them is untrue. We support our large construction companies, but this support should not come at the expense of small black-owned and female-owned businesses that wish to enter and/or expand in the sector.
Ladies and Gentlemen,
With government support, SANRAL will demonstrate its ability to construct world-class road infrastructure using the most advanced and innovative technologies, while continuing to contribute to the economic growth of the communities impacted by our initiatives. We will continue to require a substantial financial contribution to community development for every contract we award, as well as the employment of small, medium, and micro enterprises owned by designated groups such as women, youth, people with disabilities, and veterans.
South Africa, like the majority of nations on earth, has struggled to improve its economy since the global financial crisis of 2007 began.
In light of this, our president, Cyril Ramaphosa, has identified the construction industry as one of the industries that can play a significant role in boosting the economy. The South African National Roads Agency (SANRAL) is fulfilling its duty by injecting funds into local economies and constructing long-lasting roads.
Board Chairperson, Board Members and EXCO,
Government is learning from SANRAL's approach to community engagement in project development. We have observed SANRAL's engagement with impoverished and rural communities, as well as the months spent consulting with local municipalities, residents, and traditional leaders regarding SANRAL's plans. When SANRAL eventually begins to construct our road, we are assured that it has the support of the local community. This may appear to be a laborious procedure, but it is well worth the effort in the end.
If we are effective in uplifting neighboring communities, we can move away from a situation in which our roads are exceptional islands in a sea of impoverished communities.
Recently, one of our main projects in the Eastern Cape was inaugurated. The Msikaba and Mtentu bridges are two of the largest bridges ever constructed on the African continent, if not the entire globe. The Msikaba bridge is progressing well and should be completed by 2025, whereas the Mtentu bridge was delayed due to community discontent with our previous contractor. This project was recently re-tendered, and construction is steadily taking shape.
Programme Director,
The N2 Wild Coast Road initiative demonstrates that engineering excellence and extensive community participation can coexist.
The Montrose interchange is another undertaking which has been completed. This project has given economic benefits to the communities of Mbombela, particularly to SMMEs. Many SMMEs benefited from acquiring new skills and expanding their businesses.
As a government, we provide bursaries and scholarships to high school and college students. We realized that we cannot support only university students, as there are numerous young people who are unable to complete secondary school due to their economic circumstances, which they are not responsible for. Many of the students who received scholarships from us ultimately received university scholarships, with some, but not all, becoming engineers. Additionally, we have an internal academy where young engineers can refine their skills before becoming project managers at the roads agency.
Programme Director,
During the Montrose interchange construction, Raubex instituted Labour-Intensive Training to capacitate the locals by giving them practical work experience to take place before the formal training from an accredited training institution. This allows them to better comprehend the scope of their work before moving on to the theoretical platform. Forty-four (44) emerging contractors have benefitted from the initiative and 834 local people benefitted through employment.
Similar community benefits accrue from other road construction initiatives in other states.
SANRAL is the government's principal roads infrastructure development organization. These enormous undertakings are evidence of its application and adherence to world-class standards, as well as the use of brilliant minds, skills, and expertise to complete them.
While these infrastructure projects are improving roads, road safety, and the movement of people, it is crucial to note that they are primarily intended to improve the lives of the vast majority of individuals who lacked access to viable road infrastructure.
This improvement in road infrastructure quality will have enormous social and economic effects on people's lives. In addition to creating immediate employment for the communities surrounding these initiatives, improved infrastructure will allow our citizens to travel and seek out new employment opportunities.
Programme Director,
Today's take-home message is that the government will continue to upgrade and develop our national roads to facilitate the movement of people, goods, and services between provinces and neighboring countries. Additionally, this will have a positive impact on other provinces.
We desire prospering communities to coexist with our world-class roads. And we do not wish to wait another quarter-century for it to occur. It must occur much, much sooner. We hope that you will all accompany us on this exciting and challenging voyage.
Distinguished ladies and gentlemen,
I do not wish to consume more of your time with lengthy remarks, as this is a time of celebration.
Thank you for being present this evening. Tonight is yours. Please travel back to your home in safety.
Remember SIYAKHA…WE ARE BUILDING A Better Transport Infrastructure to Grow South Africa Together”
I thank you.
