WBHO signs development agreements to promote black construction companies

Construction company Wilson Bayly Holmes-Ovcon (WBHO) on Tuesday signed development agreements with three black-owned contractors, Motheo Construction Group, Fikile Construction and Edwin Construction, as part of a deal signed with government in October to ensure the inclusivity of black contractors in the South African construction sector.

WBHO is one of the seven listed construction companies who made the commitment to government to either ensure that the equivalent of 25% of their yearly South African construction turnover is executed by black construction companies within seven years, or that more than 40% of their construction business will be sold to black construction shareholders.

WBHO has chosen the first option.

Motheo, Fikile and Edwin will run their businesses independently of each other, with WBHO assisting financially with guarantee facilities and working capital; administratively, with project budgeting, tendering, reporting and strategic planning; and operationally, by advising and assisting construction site management.

The companies and WBHO will hold strategic meetings to develop business plans to ensure that the growth of the black-owned and -managed companies remains on track as far as turnover targets are concerned, as well as ensuring that profit margins are maintained to ensure the sustainability and growth of each business.

“We have known the management of all three companies for many years and have a high regard for their skills and expertise and look forward to being the catalyst for their growth.

“It is a privilege for us to be involved in this transformation milestone for our company and the construction industry. We look forward to working closely with the teams at Motheo, Fikile and Edwin in tackling the significant infrastructure needs of South Africa,” WBHO CEO Louwtjie Nel said.

Through this agreement, the equivalent of 25%, or about R4-billion, a year will be executed by the three contractors, which, in turn, will increase their turnovers substantially.

In addition, Motheo, Fikile and Edwin will each commit to mentor and develop four smaller black contractors in the same spirit. This will result in the WBHO grouping empowering at least 15 black construction companies.

WBHO will also continue with its internal enterprise development programmes, which is involved in mentoring a further 12 black construction companies.

The Motheo Construction Group was established in 1997 by Dr Thandi Ndlovu and has, during its 19-year history, developed into one of the largest predominantly black woman-owned construction companies.

Motheo is a leading provider of social housing in the country.

Fikile Construction is one of the largest black woman-owned and -managed construction companies in the country and a significant player in the South African building and construction industry landscape.

Chaired by Hlami Ndlovu who took over from her father after his death in 2007, Fikile plays a pivotal role in the provision of social and commercial infrastructure and is a contributing partner in South Africa’s transforming economy.

Eddie Mashishi is the CEO of Edwin Construction which is a black-owned and -managed multidisciplinary construction company active in the industry since 1997.

The group offers structural and technical expertise in the construction of roads and highways, dams and earthworks, bridges and interchanges.