Khato Civils, the Pride of Black Owned Construction Giants
Friday, October 06, 2017
Khato Civils headquarters at Midrand, Johannesburg
During their recently held Annual General Meeting in Johannesburg, the executive chairman of the two civil works and engineering companies Simbi Phiri proudly announced that his companies have been graded level 9 in Civil Engineering, general building, mechanical engineering and electrical infrastructure.
To put the Khato Civils and South Zambezi’s impressive grading credentials into context , the latest CIDB report released in July says that most black owned contractors make grades 2-4. The CIDB report also observes that black ownership is lower in mechanical, electrical and specialist engineering contractors and significantly lower in grade 9, at around 25-30%.
Whilst celebrating milestones in inclusivity, with notably P5 billion awarded to vulnerable groups, the report sounds a 'siren' on a dangerous and growing trend: the ballooning use of micro-procurement. That this method, designed for small-scale, efficient purchases, now accounts for a staggering 25% (P8 billion) of total procurement value is not a sign of agility, but a 'red flag'. The PPRA’s warning is unequivocal and must be...