Today, Western Cape MEC Alan Winde addressed around 150 emerging construction industry contractors at the Provincial Treasury Supplier Open Day. ABSA Bank, South African Revenue Service (SARS) and the Construction Industry Development Board were also present to provide advice to the attendees.
Minister Winde opened the event, "Between April and June 2010, 57 percent of government contracts were awarded to Historically Disadvantaged Individuals (HDIs). This is a 4.32 percent increase over the same period last year. While we are making head way, this government is serious about growing these figures upward. We are hosting this event in response to calls from emerging contractors who approached government for advice on how to tender for contracts, get financing and comply with tax regulation. We hope that through this intervention we will increase the value of our awards to HDIs substantially."
The primary objectives of this administration are to grow the economy and create jobs. Two critical components of this involve an ambitious infrastructure regeneration and development programme, which will be rolled out transversally, and the development of our small medium and micro enterprise (SMMEs) so that they become self-sustaining, economically active contributors to our economy.
The province, through the Department of Public Works, is also responsible for the maintenance, upgrading and construction of public infrastructure in the Western Cape. Much of this work is outsourced to companies, presenting huge opportunities for work.
The construction sector, which employs 158 000 people and comprises 4.2 percent of the Western Cape economy, has been on the decline for several years. By boosting local procurement and government spending with emerging contractors, we hope to revitalise this industry so that it can increase its contribution to our regional gross domestic products (GDPs).
"While big companies are well versed in government procedures, it is our smaller and newer companies that have yet to develop these skills, and we need to make serious gains here. This is evidenced by the fact that level one contractors constitute the bulk of the contract register, but generate the least amount of work in the industry. We need to make sure that our level 1 to 4 contractors are educated on government processes so that they can become competitive against larger, more established companies when bidding for our tenders", said Winde.
