R300m fund launched for emerging contractors

By Charmaine Ndlela

The Small Enterprise Development and Finance Agency (SEDFA) and the Construction Industry Development Board (CIDB) have launched a R300 million construction fund aimed at developing the construction sector and supporting emerging contractors.

The fund, which operates under the CIDB’s B.U.I.L.D Programme, is expected to assist qualifying construction micro, small and medium enterprises, particularly emerging CIDB-registered contractors struggling to access finance and growth opportunities.

ALSO READ: Durban gets high-tech vehicles for beachfront safety

The launch was held in Modderfontein, Johannesburg, on Tuesday.

Speaking at the launch, Small Business Development Minister Stella Ndabeni-Abrahams said many capable businesses continued to face challenges linked to limited funding, compliance requirements and a lack of technical support.

“The R300 million Construction Fund is not simply about financing projects, it is about advancing economic justice,” she said.

Ndabeni-Abrahams added that the initiative seeks to unlock opportunities for emerging contractors while helping build a more sustainable and inclusive construction sector.

ALSO READ: Mandela Legacy sporting series launched to honour legacy through action

Deputy Public Works and Infrastructure Minister Sihle Zikalala said the fund would strengthen infrastructure delivery and support economic participation.

“Today’s historic launch of the construction fund by the Department of Small Business Development and Department of Public Works and infrastructure is a testament of our government’s commitment to drive inclusive growth, create employment, build skills by supporting construction sector as we say indeed the construction sector must be a fly wheel for the South African economy,” he said.

Zikalala said supporting contractors would contribute towards job creation, skills development and improved livelihoods in communities across the country.

“This programme will see an injection of R300 million to the sector. We will want to see a sustainable increase in employment to contractors. This fund is an opportunity to grow, to formalise and strengthen your