http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.10Change: -0.09
R/$ = 10.74Change: -0.07
Au 1266.95 $/ozChange: 2.08
Pt 1412.50 $/ozChange: 3.50
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Mar 14, 2003

Construction firm makes BEE a priority for 2003

Back
Alpha|Construction|Africa|Cement|Grinaker|Projects|Africa|South Africa|Construction Group|Gross Domestic Product|Product|Carl Grim|Howard Jones|Infrastructure|Thabo Mbeki|Trevor Manual|Middle East
Construction|Africa|Cement|Projects|Africa|||Infrastructure||
alpha-city|construction|africa-company|cement-company|grinaker|projects|africa|south-africa|construction-group|gross-domestic-product|product|carl-grim|howard-jones|infrastructure|thabo-mbeki|trevor-manual|middle-east
© Reuse this South African construction group Grinaker-LTA is optimistic about prospects for the construction sector in South Africa, but admits that black empowerment will be a key challenge, particularly if it hopes to win State contracts.

Finance Minister Trevor Manual announced a R105-billion, three-year, infrastructure expenditure drive during his 2003 Budget presentation, more than half of which would be directed towards the construction sector.

This is a big recovery for South Africa, which has been experiencing a construction investment slump for many years, mainly due to under-expenditure by government.

Indeed, construction expenditure as a percentage of gross domestic product has been bungling along at some 2% during the last decade, significantly off its high of around 7% experienced during the late 1970s early 1980s.

Government’s intention to spend has, therefore, been welcomed by industry observers, but they have also cautioned that it would be key that government spends the money and it does not roll over.

This up-tick in the South African economy is also coming as vital relief for the local construction sector, which is facing uncertainty in the international markets, particularly in the Middle East, where South Africans have taken up a strong position. This is doubly important in light of the strengthening rand, which is likely to dampen its earnings from Africa and abroad.

However, it was also made clear during President Thabo Mbeki’s State of the Nation address that businesses hoping to win work from government would need to demonstrate a commitment to black economic empowerment (BEE).

Speaking earlier this week, Grinaker-LTA deputy chief executive Howard Jones revealed that empowerment would be a key priority for the company in the year ahead, adding that it would be pursuing various BEE initiatives.

This sentiment was supported by the head of Grinaker-LTA’s holding company, Aveng, who said that it would be pursuing ownership, employment equity, procurement and corporate social investment programmes to improve its BEE profile.

Carl Grim says the company will also be seeking to maintain a well-balanced construction order book, locally and internationally and that it would be happy to allow its order book to fall if that improves quality of work on hand. Indeed, the company had already seen its order book fall from R9,8-billion in June 2002 to R8,2-billion in December, with Grim explaining that this was due to managed programme of ensuring that the order book remained of a quality acceptable to the company’s risk framework.

The improvement in the construction sector is also evident in Aveng’s cement business Alpha, South Africa’s second largest cement producer, with its tonnages for the six-month period to December 2002 rising 9,9% on the previous period.

Aveng describes the cement market as buoyant, reporting 5% growth last year.

The cement business is also beginning to raise its output and is currently running at 60% capacity, which could improve as its efficiency projects involving R340-million begin to kick in.

Grim added that BEE was likely to be a big challenge, but that Aveng was committed to making it work in the interests of both social equity and its shareholders.

It is also understood that the construction sector as a whole is considering the establishment of a BEE charter, although it is likely to hold back on this until the Department of Trade and Industry (DTI) publicises a broad-based piece of legislation, giving guidance to South African business on the issue of empowerment.
Edited by: Terence Creamer
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Construction News
Despite various challenges related to the extraction of shale oil and gas, as countries grow accustomed to the idea, the use of shale as a form of energy will be more widely pursued, international oil and gas market analyst Michael Lynch said on Tuesday. Speaking at...
Regional interconnections and oil discoveries are expected to drive the transmission and distribution industry’s (T&D’s) growth in East Africa, the second-fastest growing region in Africa, global growth consulting firm Frost & Sullivan said on Tuesday. The...
Neil Gopal
The South African Property Owners’ Association (Sapoa) has appealed to Rural Development and Land Affairs Minister Gugile Nkwinti to invoke the discretionary powers available to him under the Spatial Planning and Land Use Management Act of 2013 to prevent...
More
 
 
Latest News
Despite various challenges related to the extraction of shale oil and gas, as countries grow accustomed to the idea, the use of shale as a form of energy will be more widely pursued, international oil and gas market analyst Michael Lynch said on Tuesday. Speaking at...
A consortium led by two Kenyan firms won a government tender to build a 1 000-MW, coal-fired power plant, company officials said on Tuesday, part of moves to satisfy rising demand for energy in East Africa's biggest economy. Kenya suffers from regular blackouts due...
TNPA CEO Tau Morwe
The announcement of the successful bidder for the construction of Durban’s long-awaited passenger cruise terminal was imminent, Transnet National Ports Authority (TNPA) CEO Tau Morwe told delegates at the African Ports Evolution Conference in Durban on Tuesday. ...
More
 
 
Recent Research Reports
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
Real Economy Insight: Road and Rail 2014 (PDF Report)
This six-page brief covers key developments in the road and rail industries over the past 12 months, including details of South Africa’s road and rail network and prospects for both sectors.
 
 
 
 
 
This Week's Magazine
South African State-owned defence industrial group Denel has announced its fourth consecutive year of profits. The group's results for the financial year 2013/2014 were recently announced at its head office in Centurion, south of Pretoria. Revenues grew by 17%, net...
There is little opportunity for JSE-listed infrastructure company Group Five to grow shareholder value in the domestic market, says CEO Mike Upton. He says value can still be found in the private sector, in the renewable and industrial power sector, as well as in...
The National Association of Automobile Manufacturers of South Africa (Naamsa) has announced the event dates of the 2015 Johannesburg International Motor Show (JIMS). The event will take place from October 14 to October 25, 2015, at the Johannesburg Expo Centre, Nasrec.
UK engineering support services provider Babcock is set to deliver the largest order of global truck manufacturer DAF’s truck tractors in Southern Africa to bulk carrier road-based logistics company Ngululu Bulk Carriers (NBC), with 133 trucks to be delivered in...
Digital radio communications in the African local government space can open up the world, but have many challenges to overcome, notes integration and migration of legacy radio communications infrastructure with digital mobile radio company Emcom Wireless head of...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks