Minister of public works and infrastructure Sihle Zikalala has conceded that despite years of contractor development interventions, many emerging contractors remain unable to grow beyond the lower Construction Industry Development Board (CIDB) grades.
Zikalala said progression remains limited and access to meaningful opportunities is still constrained.
Zikalala was speaking during the third National Contractor Development roadshow in KuGompo City on Friday.
He said according to the recent CIBD Construction Monitor, data confirmed that while transformation has progressed at entry level, it declines significantly at higher levels of the industry.
The report showed that black ownership is as high as 69% in grades 2 to 4, but drops to just over 50% at grade 9, where the largest and most complex projects are delivered.
Zikalala said more concerning was that black-owned contractors are accessing only about 45% of public sector contract value, while women-owned enterprises account for just 15%.
The 2026 CIDB Construction Monitor also showed that at the highest level of the industry, black-owned contractors account for only 20% of contract awards, and women-owned enterprises only 10%.
“This tells us clearly that participation alone is not enough. The real challenge is ensuring access to opportunities at scale and enabling contractors to grow into higher levels of the industry,” Zikalala said.
He said the department and CIDB are implementing the National Contractor Development Framework to ensure that contractor development is co-ordinated, standardised and focused on long-term sustainability.
“This framework is designed to support real progression, particularly for women, youth, people living with disabilities and emerging contractors, and to ensure that development is directly linked to opportunities.
“This work is strengthened through the CIDB B.U.I.L.D Programme, which embeds development directly within procurement processes.
Through the B.U.I.L.D Fund, the Enterprise Development Standard and the Skills Development Standard, infrastructure projects are used as a tool to drive both contractor growth and skills development,” Zikalala said.
He said they are accelerating the implementation of the B.U.I.L.D programme across infrastructure clients as a key lever for enterprise and skills development. This ensures that development is not treated as an add-on, but as a core requirement of infrastructure delivery.
“Client capacitation sessions are currently being rolled out across all nine provinces to support the effective implementation of the B.U.I.L.D Programme.
“A key component of this work is the rollout of Construction Management Systems training, which forms part of the B.U.I.L.D Programme’s broader skills development approach,” he said.
The minister said CIDB signed Memoranda of Understanding with institutions such as the University of the Free State and the University of Johannesburg, and the recent launch of the iYunivesithi Walter Sisulu Centre of Excellence will serve as a key delivery hub for Construction Management Systems training, which is fully funded by the CIDB.
This ensures that contractors are able to access high-quality, industry-aligned training and receive credible, verifiable certification without financial barriers.
“Accelerating transformation and building a truly inclusive construction sector is a constitutional imperative in our national efforts to build a non-racial and non-sexist society. We will not be able to turn South Africa into a construction site if the majority who are black and African in the main remain on the fringes of the economy.
“It is for this reason that more effort must be put to fast track the finalisation of the CIDB Amendment Bill and CIDB Amended Regulations which seek to improve contractor development,” he said.
MEC Siphokazi Lusithi said In the 2025/26 financial year, through the department’s flagship Integrated Contractor Development Programme (ICDP), the department provided targeted support to 100 contractors across the province.
This programme, implemented in close partnership with the CIDB, is specifically designed to strengthen the capacity, competitiveness and sustainability of emerging contractors.
Lusithi said the support provided through the ICDP is comprehensive and practical and includes Recognition of Prior Learning assessments, induction workshops, business compliance support, technical mentorship, and detailed skills audits.
“These interventions are intended to identify capability gaps, build technical and managerial competence, and position contractors for long-term participation and growth within the construction sector.
“Of the contractors currently supported through the ICDP, 45% are women-owned enterprises. A further 45% are youth-owned businesses, while 2% are enterprises owned by people with disabilities.
“These figures reflect our unwavering commitment to inclusive economic transformation and our determination to ensure that those who have historically been excluded are meaningfully integrated into the mainstream economy,” she said.
Khulile Nzo, the CIDB chairperson, said issues that affect the industry such as corruption, malfeasance and procurement practices must be addressed.
Nzo said “fly by nights and extortionists” are ruling the industry.
He said the roadshow is meant to bring solutions to the issues faced by the businesspeople.
Businesswoman Nothemba Mqingwana, a grade 6 electrical contractor, and one of the recipients who received their SANS 1393:2025 construction management systems certificate during the roadshow, said when she started out in the industry it was challenging, facing monetary constraints.
She’s now one of the best in the industry.
“I even forget that I’m a woman. I’m in a competitive environment with men and I have to stand up for myself,” she said.
Daily Dispatch