NDP action long overdue

NDP action long overdue

A lack of progress on National Development Plan implementation is killing off SA’s construction sector and hampering economic growth, says Master Builders’ Association North.

Musa Shangase, President, MBA North

The news that Group Five has filed for bankruptcy protection has come as yet another blow for South Africa’s construction sector, following shortly after a disappointing 2019 budget speech that offered little hope of significant infrastructure investment in the foreseeable future, says the President of the Master Builders’ Association (MBA) North, Musa Shangase.

MBA North, which represents members in Gauteng, North West, Mpumalanga and Limpopo, says the construction sector has suffered several consecutive quarters of slow – and even negative – growth, creating a ‘state of emergency’ for large and small construction firms alike.

While we understand the predicament the new Finance Minister is in, we believe the budget was not a visionary one. It cut spending on education, infrastructure and housing – all areas that could have boosted the ailing construction sector,” says Shangase. “And it must be noted that infrastructure development is the cornerstone of the economic growth of this country. If we want to achieve the growth goals set out in the National Development Plan, we need to fast track the execution of the plan and start investing in infrastructure development, which would boost investor confidence and catalyse an economic turnaround.”

Shangase says indications are that the same key stumbling blocks that emerged in recent years will continue to hamper growth in the construction sector. “The government is awarding fewer projects and has been slow to pay, which is crippling stakeholders,” he said. “We’re seeing even large contractors facing business rescue and liquidation as a result, while for sub-contractors with no cash flow, the wait of 180 days or longer for government payment is devastating.” Another challenge, he says, is local business forums demanding a 30% procurement allocation on every construction project, usually leading to delays, costly training and a risk to project quality.

Shangase says: “The Group Five news underscores the fact that the continued slow release of infrastructure projects and payments will impact the sector, with more major construction industries going into collapse if these problems are not given workable solutions.”

Shangase says 2018 was a challenging year for the MBAs, for the construction industry as a whole and for the economic growth of the country.

The Construction Industry Development Board (CIDB) small and medium-sized enterprises (SME) business conditions survey has shown that civil contractor confidence fell by six index points to an historic low of 27 during the third quarter. Weakness in all the underlying indicators, especially construction activity, contributed to the drop in confidence. Meanwhile, general building confidence has been trending downwards since early 2017.

In light of the infrastructure budget again being compromised and funds reallocated elsewhere, our concern is that we have fallen behind in terms of the NDP goals. If we want to achieve the growth goals envisaged in the NDP, we need to invest in infrastructure development now. But unfortunately, the NDP has been on the shelf since 2013. At this stage, the only positive note is the fact that we have a plan, but unless it is executed, our industry will die and South Africa’s economic growth goals will not be realised,” he says.

Finalists of the Vision 2030 Awards announced

Vision 2030 logo and imageAnnouncing the finalists of the Vision 2030 Awards: South Africa’s future makers

The Vision 2030 Awards, hosted for the first time this year, has announced its 2017 finalists.
The awards are a groundbreaking first for South Africa, recognising as it does the achievements and success stories of organisations, enterprises and individuals that are actively demonstrating alignment to the government’s Nine-Point Plan to boost economic growth and achieve the milestones set by the National Development Plan (NDP).

The overwhelming number of nominations for the various categories of the Awards casts a positive glow on the future of South Africa and restores faith in the efforts of companies and individuals to make the future of our children in South Africa brighter.

The awards, and the accompanying Vision 2030 Summit, will draw together a host of business leaders and government leaders – the commitment of both parties is integral to the success of the NDP.

Leading by example, the winners showcased by the Awards will inspire their sector peers, and stakeholders nationwide, to pledge commitment to the NDP – not in words alone but in actions that move the nation forward.

From the organiser of the Vision 2030 Awards and Summit, Topco Media: “We are delighted with the response received for these awards. This is a first of its kind in South Africa, and the only dedicated platform showcasing the good work these companies and individuals are doing on the ground.”

The winners will be announced and celebrated on 22 June 2017 at the Birchwood Hotel in Johannesburg. Tickets can be booked by emailing: clay.tsapi@2030vision.co.za

If you would like to attend the Vision 2030 Summit as a delegate, you can book your seat here: http://vision2030.co.za/product/summit-delegate-package/

The complete list of this year’s Vision 2030 Awards finalists can be found here: http://vision2030.co.za/awards/ or see below.

POWERING SOUTH AFRICA AWARD sponsored by PSM

African Equity Empowerment Investments

ArcelorMittal South Africa

Boxer Superstores

British American Tobacco SA

WOA Fuels & Oils

HEALTHCARE AWARD sponsored by Mylan SA

Clicks Group Ltd

Clinix Health Group

Government Employees Medical Scheme

Hospice Palliative Care Association

The Innovative Pharmaceutical Association South Africa

National Department of Health

AGRICULTURE AWARD

Amadlelo Agri

British American Tobacco SA

Eastern Cape Rural Development Agency

Mariveni Farmers Co-Operative

Woolworths Holdings Ltd

EDUCATION AWARD sponsored by Human Resource Development Council

Cape Town University of Technology

Clicks Group Ltd

Department of Basic Education

Eskilz College

Richfield Graduate Institute of Technology

South African Broadcasting Corporation

Spring Lights Gas (Pty) Ltd

Symphonia for South Africa

The Da Vinci Institute for Technology Management

University of Johannesburg

Vaal University of Technology

MINERAL AWARD

AcerlorMittal South Africa

Anglo American Platinum

WOA Fuels & Oils

INFRASTRUCTURE DEVELOPMENT AWARD

ArcelorMittal South Africa

Automotive Industry Development Centre

Bigen Africa

Bombela Concession – Gautrain

Boniswa Corporate Solutions

City of Cape Town – Water & Sanitation

Coega Development Corporation

Dormac Marine & Engineering

Indigo Kulani Group

SCIENCE AND TECHNOLOGY AWARD sponsored by NEMISA

Centre for Public Service Innovation

EOH Holdings

Global Business Solutions

National Research Foundation

The Council for Scientific and Industrial Research

The Innovation Hub

University of Johannesburg

Vaal University of Technology

DRIVER FOR CHANGE AWARD

Asher Bohbot – EOH Holdings

Carol Weaving – Reed Exhibitions

Dr Louise van Rhyn – Symphonia for South Africa

Freddy Masekwameng – Two Mountains

Hubert Mathanzima Mweli – Department of Basic Education

Jeffrey Every – Amadlelo Agri

Kamal Timmal – Eskilz College

Kgomotso Pooe – Soweto Outdoor

Khalid Abdulla – African Equity Empowerment Investment

Malebona Precious Matsoso – National Department of Health

Matsietsi Mokholo – Department of Public Enterprise

Patricia Chiloane – Training at Work

Professor Ambassador Edgars – GBSH Consult Group

Richard Schulz – Adept Airmotive

Veli Eric Mabena – Maluti TVET College

SMME AWARD

Calvin & Family Group

Orvall Corporate Designs

South African Council for Natural Scientific Professions

Soweto Outdoor

The Green House

Training at Work

Treatment Action Campaign

Triviron

INDUSTRIAL POLICY ACTION PLAN AWARD sponsored by DENEL

Amadlelo Agri

Anglo American Platinum

Bombela Concession – Gautrain

Cape Town International Convention Centre

Durban International Convention Centre

Government Employee Medical Scheme

Havas Worldwide

Ithala Development Finance Corporation

National Health Department

Sasfin Holdings

WDB Trust

Participate in driving the NDP at the Vision 2030 Summit

V2030 logo (1) Participate in driving the NDP at the Vision 2030 Summit

Copy of Minister Jeff Radebe

Minister Jeff Radebe

The 3rd annual Vision 2030 Summit will be held from 21-22 June 2017 at the Birchwood Hotel, Gauteng. This will be an opportunity to join South Africa’s leaders in both government and the private sector to take action and drive economic acceleration and transformation to where it should be.
The Vision 2030 Summit – under the endorsement of the National Planning Commission – aims to publicise the activities around the implementation of the National Development Plan (NDP) and to encourage collaboration among all stakeholders, including business, government and civil society by providing an inclusive platform for members of the Presidency, key government dignitaries and private sector leaders to share insights, engage and discuss the vision for the National Development Plan for South Africa.

The purpose of the Summit is to showcase and recognise all the good work that has been done with the implementation of The National Development Plan and the opportunities that arise as a result of the coordinated effort for organisations, society and the country. Vision 2030 aims to bring the best minds and role players together to identify opportunities and see how they can collaborate to deliver the services and products quicker, so that South Africa can become more productive and grow faster.

The challenge of realising the NDP is a collaborative one – and public private partnerships (PPPs) are a prerequisite in order to achieve its successful execution.
“All South Africans have a responsibility to make sure that we implement the recommendations and findings of the NDP. We owe it, not only to ourselves, but also to our children and their children.” – Ryland Fisher, Editorial Director, Vision 2030.

To register for this event visit: http://vision2030.co.za/tickets/ and QUOTE code: GOV01 for your 10% discount. Only available to SA Builder and Government Digest readers.