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Motheo, WBHO sign agreement

As part of the Voluntary Rebuilding Programme (VRP) concluded with government in October this year, three major black-owned contractors have signed a development agreement with WBHO.
Construction industry representatives at the signing of the development agreement.
Construction industry representatives at the signing of the development agreement.

The VRP commits the seven listed construction companies to either ensure that, within seven years, the equivalent of 25% of their annual local turnover will be carried out by black-owned contractors, or that over 40% of their local business will be sold to black shareholders.

WBHO had opted for the former. With a current building and civil engineering turnover of R11bn, which is expected to increase to R15bn over the next seven years, the equivalent 25% equates to R4bn a year to be executed by Motheo Construction Group, in addition to Fikile Construction and Edwin Construction.

Transformative milestone

Addressing the official signing ceremony, Dr Thandi Ndlovu, CEO of Motheo Construction Group, said: “We see this as a transformative milestone in the construction sector, and an excellent way forward for our companies and consortium members.”

Dr. Thandi Ndlovu, CEO of Motheo Construction Group.
Dr. Thandi Ndlovu, CEO of Motheo Construction Group.

Dr. Ndlovu has also been elected to the South African Forum of Civil Engineering Contractors (SAFCEC) council. She was a founding member of South African Women in Construction in the early 1990s, and won the Businesswoman of the Year Award in the Entrepreneurs Category in 2013, as awarded by the Businesswomen’s Association of South Africa.

Her long association with SAFCEC extended to her role as president of the Black Business Council for the Built Environment (BBCBE) in 2012, when both SAFCEC and the BBCBE began engaging the construction industry about VRP, in conjunction with the Presidential Infrastructure Coordinating Committee (PICC).

Louwtjie Nel, CEO of WBHO
Louwtjie Nel, CEO of WBHO

Tackling SA’s infrastructure needs

“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. We look forward to working closely with the teams at Motheo, Fikile and Edwin in tackling South Africa’s significant infrastructure needs,” WBHO CEO Louwtjie Nel commented.

Motheo Construction Group’s twenty-year model of transforming into a “truly-empowered” company is not only a first for the South African construction industry, but sets a benchmark globally, according to Dr Ndlovu, who established the company in 1997 to focus initially on housing projects. In this regard, it boasts six black female (and one black male) shareholders, with a collective 54% stake.
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