Posted on 9 December, 2024
GVK-Siya Zama accomplished several significant milestones in 2024 that strengthened its
position in the construction industry. One of its primary achievements was the completion of two
mammoth projects, each valued at around R1 billion. The first involved the redevelopment of the
historic Cape Station in collaboration with Eris Property Group, while the second was
undertaken for a global digital giant, demonstrating the company’s capability to deliver
high-profile, complex projects.
Looking at standout projects and partnerships, the successful delivery of the R1 billion projects
highlighted GVK-Siya Zama's growth from its 1960s origins as a painting and restoration
contractor to its current status as a leading construction company capable of managing
large-scale projects.
Along with boosting the skills profile of its employees, the company’s leadership team attributes
this transformation to continued dedication to building partnerships with clients, consultants, and
importantly, subcontractors and small- to medium-sized enterprises (SMMEs). The emphasis on
collaboration, mutual benefit, and a shared commitment to stakeholders is a cornerstone of its
business philosophy.
The construction industry faced considerable hurdles throughout the year, however. GVK-Siya
Zama encountered persistent low mark-ups, fierce competition, and slow- or non-paying clients.
These factors hindered efficient trading and challenged financial prudence.
A particularly impactful phenomenon during 2024 was the mass exodus of skilled labour from
the construction industry. This ‘brain drain’, driven mainly by more lucrative opportunities
abroad, particularly in the Middle East, presented significant challenges, given the mark-ups and
general trading conditions in South Africa.
Collectively, these challenges have led to devastating consequences in the industry as a whole.
Even industry legends like Murray & Roberts Limited are now facing the possible threat of
liquidation. It is both tragic and worrying.
Eben Meyburgh, the CEO of GVK-Siya Zama, voiced his heartfelt concern at the recent
announcement of Murray & Roberts’ business rescue, particularly following the failures of other
companies like Group 5 and NMC. He highlighted this as a sorrowful chapter for an industry that
is the second-largest employer.
The larger firms, including Murray & Roberts – whose legacy dates back to 1902 – have long
served as an essential training ground for the industry. Unfortunately, many smaller companies
lack the resources, facilities, and funding to offer comparable training programmes. The
contributions of these larger organisations have been vital to the industry's stability and
longevity.
“In light of these challenges, there is a pressing appeal to Minister Dean Macpherson,” says
Meyburgh. “The construction industry urgently requires support. We call on the public sector to
play a more proactive and responsible role.”
What the industry needs is the following:
● A consistent pipeline of work
● Fair processes for tender adjudication
● Equitable treatment and evaluation of contract claims by skilled, impartial consultants
● Timely payments.
“Ineffective consultants and a lack of proper adjudication of claims leave contractors,
subcontractors, small businesses, and local workers at risk,” he says. “Delays in payment not
only impact individual projects but also disrupt the entire construction value chain.”
The local construction sector is deeply integrated into the socio-economic framework of the
country and is dedicated to project execution, skills development, black economic
empowerment, and community upliftment.
However, pushing the local industry to the brink may pave the way for foreign companies, which
often avoid compliance with empowerment standards and receive concessions to import
materials or substandard components like structural steel and cement. This approach threatens
to weaken the local value chain, leading to a lack of genuine investment in the country and
profits siphoning out of the economy.
“Despite these dire circumstances, it is encouraging to see that proactive measures are being
taken against the construction mafia,” says Meyburgh. “There is hope that the government will
remain committed to supporting the industry, and we are hoping for a turnaround for every
construction business and the thousands of people they employ,” he added.
Looking to 2025, several exciting developments are on the horizon for GVK-Siya Zama, one of
the largest projects currently under way is the Soshanguve Mall north of Pretoria, which will
likely exceed the scale of the Cape Station project. Additionally, work will continue on
infrastructure and healthcare initiatives in the rural Eastern Cape, which will run over several
years due to their extensive size and scope.
The company is also involved in two prominent projects in Cape Town’s V&A Waterfront,
comprising a residential development and a significant addition to the hospitality offerings in the
area.
Regarding trends for 2025, GVK-Siya Zama remains optimistic about the construction industry’s
potential recovery, noting an increased appetite and willingness to invest. While government
initiatives to stimulate growth are a positive sign, they are often hampered by budgetary
constraints that may take time to overcome.
Nonetheless, the adoption of new contracting methods, such as Public-Private Partnerships
(PPPs) and Joint Ventures (JVs), is becoming a promising way to accelerate project delivery.
Changes in tender documents and requirements also suggest a shift that could greatly enhance
the efficiency of future projects.
Leave a comment