The Civil Engineering Contractor June 2018 | Page 37

THOUGHT LEADERSHIP
The management of all three companies
is well known to WBHO, and they
have a high standing in the industry
in terms of their skills, expertise, and
transformation. We will collaborate
closely to tackle South Africa’s significant
infrastructure backlog.
Motheo Construction Group itself has a
20-year model of transforming into a truly
empowered company. This is not only a
first for the South African construction
industry but sets a benchmark globally.
It is also in accordance with the vision
of our founder, Dr Thandi Ndlovu, who
established the company in 1997 to
focus initially on housing projects. To
date, we boast six black female (and
one black male) shareholders, with a
collective 54% stake.
Dr Ndlovu participates in the South
African Forum of Civil Engineering
Contractors (SAFCEC), where she is
a council member, contributing to the
development and transformation of the
South African construction industry.
Dr Ndlovu was former 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
the VRP. The VRP provides a blueprint
for restoring the government’s trust in
the construction industry, following the
collusion issues that came to light in the
wake of the 2010 FIFA Soccer World
Cup.
This will result in a window of
opportunity for the government to
begin releasing major infrastructure
spend. Our involvement with both
the VRP and SAFCEC will accelerate
our own continued transformation as
a truly empowered, all-encompassing,
black-owned construction company,
commanding the respect of the industry,
and leading the way forward.
Archie Rutherford is managing director:
civils at Motheo Construction Group. nn
Motheo
We were one of three black-owned contractors to sign
a development agreement with WBHO in terms of the
Voluntary Rebuilding Programme (VRP), concluded with the
government in October 2016.
Dr Thandi Ndlovu, who established the
company in 1997 to focus initially on
housing projects, is CEO of Motheo
Construction Group.
Standard Chartered Bank, and the
African Development Bank (AfDB).
It is notable that, for the first time,
EAIF has attracted a large commercial
institutional investor in global insurer
Allianz. This is testament to the
continued attractiveness o f Africa as an
investment destination.
The EAIF forms part of the Private
Infrastructure Development Group
(PIDG), a donor-backed organisation
that encourages private sector
infrastructure investment in the world’s
lowest-income countries. PIDG blends
public and private finance to reduce
investment risk, promote economic
development, and combat poverty.
Allianz’s commitment to the EAIF
heralds the PIDG’s concerted drive to
attract greater levels of funding from
institutional and commercial sources.
Companies such as Motheo
Construction Group are positioned to
collaborate with other major players in
terms of meeting Africa’s infrastructure
needs. We are a black women-owned,
CIDB Level 9 contractor, which
enhances our ability to deliver on the
holistic infrastructure solutions that
are so essential for the continent’s
development.
We were one of three black-owned
contractors to sign a development
agreement with WBHO in terms of
the Voluntary Rebuilding Programme
(VRP), concluded with the government
in October 2016. We see this as a
transformative milestone in the South
African construction sector.
The VRP commits South Africa’s 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 itself opted for the former.
With a current building and civil
engineering turnover of R11-billion,
which is expected to increase to R16-
billion over the next seven years, the
equivalent 25% equates to R4-billion
a year to be carried out by Motheo
Construction Group, in addition to Fikile
Construction and Edwin Construction.
Archie Rutherford is managing director:
civils at Motheo Construction Group.
CEC June 2018 - 35