Director of the programme,
Mr Fred Mfeka, Chairperson of VECA,
Members of the Provincial Executive of VECA,
Ladies and gentlemen.
I would like to greet you all this morning.
As you know, the KwaZulu Natal Department of Transport has travelled a very long journey with the emerging contractors.
The programme was first piloted as part of the Roads for Rural Development Programme. It was later encapsulated in the Department’s "Road to Wealth and Job Creation" strategy in 1998.
In 2000, the Vukuzakhe programme was launched formally, to introduce the participation of small, mainly Black contractors in the construction industry.
This was, and remains, a bold step taken by the department to facilitate the development of a new breed of contractors.
The Vukuzakhe programme was specifically designed by the KZN Department of Transport to empower previously disadvantaged individuals within the construction industry.
We determined that this would be achieved with us, the department, helping to develop contractors to become owners of their own sustainable road construction companies.
Since the launch, the Vukuzakhe programme has grown from strength to strength, and to date we have approximately 35 000 contractors registered on our database.
We have also throughout the years witnessed growth and development of these contractors. We must note that today we have at least 21 contractors who have graduated to Grade 6, in terms of the Construction Industry Development Board certification. This grading enables these contractors to work on projects to the value of R13 million.
We are also proud to indicate that we have three (3) contractors that have attained Grade 7 and are now eligible to handle work up to R40 million.
These are contractors who have grown into solid companies that can stand on their own in a highly competitive market.
Why then are we here today?
In 2001, the KZN Department of Transport started to assist emerging contractors with the establishment of 32 voluntary industry associations. The department’s vision for the associations was for them to play an important role in advocating for the empowerment of small contractors.
It is within this premise that in 2003, these 32 associations came together to form the Provincial Vukuzakhe Council (PVC).
In April 2010, the Department of Transport assisted the PVC members in formalising their operation by registering themselves as a Section 21 entity (which means association incorporated not for gain). We felt this type of a legal structure was critical considering the following factors:
- Organisations that VECA interacts with, such as funders or government departments, also preferred this particular structure to a voluntary association.
- The desire by the association to publicly disclose and account to stakeholders, that is, donors, beneficiaries, the general public and government.
- The need to speak with a single voice about matters that affect emerging contractors in South Africa.
- The need to unite emerging contractors in both civil engineering and the general building sector with the intention of achieving common goals.
- The long-term vision to promote self-sufficiency of members by accumulating resources that lessen their dependency on others, and finally
- The need to collectively identify business opportunities within and outside the construction industry to grow and expand their businesses.
The legal formulation of the Vukuzakhe Emerging Contractor Association (VECA) as a Section 21 company therefore resulted in hosting of the first Annual General Meeting (AGM), which was held on 8 to 9 November 2012.
Commitments by the department at the AGM
At this AGM, I made the following commitments on behalf of the department, that there be a:
1. Finalisation and signing of the Memorandum of Understanding between VECA and the Department of Transport which is what we are doing today. I must admit that we have taken longer than anticipated, but I take comfort in the fact that we have finally achieved this goal.
2. Facilitation of a capacity building programme for VECA, commencing with the induction for the newly elected committee as a short term intervention.
3. Facilitation of a strategy session to develop a business plan for VECA, which will drive and guide their operations and provide support required from various stakeholders. The business plan has been finalised.
4. Building capacity through Training and Development of the contractors to support their growth as independent contractors. This was also to be supported by the conceptualisation of funding models, and require close working relationships with other partners like Department of Economic Development and Tourism and Ithala, to name a few.
5. Investigation of a model for providing management, administration and infrastructure support to VECA.
6. Development and implementation of a communication framework for engagement between VECA and the Department’s management including cost centres and area offices.
I am happy to report that great progress has since been made in many of these commitments.
Today we are officially signing the MoU, marking a critical development in our long journey and strengthening the relationship with specific outcomes.
The business plan has also been prepared as part of this MoU, and spells out clearly the specific programmes that the department will be supporting VECA on.
In conclusion, I would like to assure you that the Department of Transport is looking forward to a healthy and fruitful relationship with VECA.
