Title: Imminent strike against South Africa’s construction cartels: President Cyril Ramaphosa takes the lead
Introduction :
In a recent statement, President Cyril Ramaphosa declared war on construction cartels operating in South Africa’s KwaZulu-Natal province. Known for their use of violence and intimidation to gain access to public tenders, these pressure groups have long jeopardized the construction industry and economic development of the region. President Ramaphosa has issued a clear warning to members of these cartels, saying the government will not hesitate to take tough measures to eradicate them.
The change of direction of business forums:
In his speech, President Ramaphosa welcomed the fact that some members of business forums are now using legitimate channels to access government tenders. However, he warned these members not to think they are doing the government a favor by taking this legitimate approach. He stressed that the use of illegal methods and intimidation would not be tolerated, and that a special police unit had been established to combat those disrupting government construction sites.
The call to action:
General Secretary of the Black Business Federation (BBF), Wonder Jaca, pointed out during the meeting that although some members of the organization had been involved in disruptions of government construction sites in the past, the organization had has since changed course. The BBF now works within the rules set by the government and is seeking help to ensure that local small businesses benefit from their 30% share of government contracts.
The economic cost of construction cartels:
Construction site invasions and intimidation have been identified as the main causes of delays in some infrastructure projects. Contractors often abandon sites for fear of their safety, leading to costly work stoppages. According to Public Works and Infrastructure Minister Sihle Zikalala, construction cartels have cost the economy almost R68 billion.
Conclusion :
President Cyril Ramaphosa is determined to stamp out construction cartels plaguing KwaZulu-Natal province. By setting up a special police unit and pushing for the rules to be respected, he is sending a clear message that the government will no longer accept intimidation and violence in the construction sector. This will create an environment more conducive to economic development and the growth of local small businesses.