Chamber tackles SMME obstacles in construction sector

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23-06-2017
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Zululand Observer
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THE Zululand Chamber of Commerce and Industry’s (ZCCI) SMME Forum on Monday hosted a special meeting to tackle hiccups faced by entrepreneurs struggling to gain a foothold in the KZN construction industry.

About 70% of small businesses represented by the forum operate in the construction sector.

The majority of business owners have expressed the need to gain smoother access to the industry after failed attempts to secure work with local government, state-owned enterprises and private sector construction companies.

Their toughest challenges include Construction Industry Development Board (CIDB) grading, procurement policy amendments, risk management, justification of the Broad-Based Black Economic Empowerment (B-BBEE) scorecard and outsourcing of projects.

Relationships between contractors, buyers and SMME business participation in massive projects have also proven to be taxing.

In his opening speech at the session, ZCCI SMME Forum Chairman Vusi Nene said the objective of the gathering was to promote ZCCI member SMMEs in the construction sector.

‘We need to assist them to procure in the first tier and have a bigger impact.

‘With this exclusive focus on the construction environment, the ZCCI aims at engaging statutory bodies to influence the drafting and implementation of appropriate legislation to create an enabling environment for the construction constituency,’ Nene said.

Also addressing the audience were CIDB’s Audie Blose, founder of Udah Construction, Eric Mzileni and Secretary General of the Black Business Council, Gregory Mofokeg.

‘The Black Business Council made changes to the last CIDB regulations to make it easier for emerging companies to move higher on the CIDB grading,’ said Mofokeng.

The ZCCI partnered with CIDB to visit Richards Bay twice a month to assist members with grades applications.

‘This way, our members do not have to drive to the CIDB offices in Durban, but can come to the chamber offices,’ said ZCCI Business Development Advisor, Nompumelelo Ndlela.

‘The chamber has also engaged the National Home Builders Registration Council and they are working on opening an office in Richards Bay or Empangeni.

‘We want to create a one-stop-shop for SMMEs in the Zululand.’