PAVING A PATH TO A BRIGHTER FUTURE FOR CONTRACTORS IN THE CONSTRUCTION INDUSTRY

Article by Andile Xulu | Pictures by Mahlogonolo Makwela

12 May 2026

A new chapter for emerging contractors across South Africa was marked today as the Deputy Minister of Public Works and Infrastructure, Sihle Zikalala, joined the launch of the Small Enterprise Development and Finance Agency (SEDFA) and Construction Industry Development Board (CIDB) Construction Fund in Modderfontein, Gauteng.

The launch was led by the Minister of Small Business Development, Stella Tembisa Ndabeni-Abrahams, under the theme: “Strong Foundations, Greater Futures.”

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The Construction Fund is a joint initiative between SEDFA and CIDB aimed at developing the construction sector and improving access to finance for Small and Medium Enterprises (SMEs) operating in key priority sub-sectors of the industry. Deputy Minister Zikalala was joined by CIDB Board Chairperson, Khulile Nzo, CIDB CEO, Bongani Dladla, as well as stakeholders, contractors, and business leaders.

Delivering a message of hope and support to emerging contractors, Deputy Minister Zikalala emphasised the importance of infrastructure development in driving economic growth and transformation.

“We need contractors who can build roads, schools, bridges, housing developments, water systems, and energy infrastructure while simultaneously creating jobs and supporting local economies. Most importantly, we need infrastructure delivery to become a tool for economic transformation and social inclusion,” said the Deputy Minister.

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The transformative R300 million CIDB and SEDFA Fund will focus on supporting SMEs operating in:

CIDB Board Chairperson Khulile Nzo said that while the Fund may offer smaller amounts than commercial banks, its purpose is to ensure faster access to funding and more meaningful support for businesses that need it most.

The Construction Fund aims to:

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Deputy Minister Zikalala concluded with a message of commitment and responsibility to contractors. “This Fund is an opportunity — an opportunity to grow, to formalise and strengthen your business, to build capacity, and to participate meaningfully in South Africa’s infrastructure economy. But it also comes with responsibility,” he said.