The financial issues in the South African construction industry are well documented and are affecting, in particular, black-owned SME to medium-size construction companies. This begs the question, ‘is there a smart financial solution at the end of a seemingly boundless tunnel?’
The SME building and construction industry has been hit especially hard with business confidence indicators dropping significantly. “Sentiment remains at a very depressing level as building activity growth slowed even further,” says CIDB construction industry performance project manager Ntando Skosana. It’s also been established that Grades 7 and 8 registered the sharpest drop in confidence in the newest survey, dropping from 40 to an almost six-year low of 23.
Furthermore, on a provincial level, civil engineering businesses in the Eastern Cape and Western Cape experienced the sharpest deterioration in sentiment in the newest survey, to zero and 27 index points respectively.”
Projects Tier: Construction Support Services
One of the ways in which contractors are trying to overcome the financial struggle is to find companies that offer credit facilities. Chwai offers a range of construction support services that includes a bridge financing: a 30-60-day credit facility, contractors have the freedom to purchase the required building and hardware material – as well as hiring of crucial equipment – to black SME and medium-sized contractors such as Department of Public Works; municipalities; private developers; DIY; home renovators; artists; artisans; carpenters; plumbers and electricians.
The expert, organised project management in the construction industry is also needed to complement the financial support; Chwai has successfully managed a plethora of developments. Take a look at a few of our projects in which we have assisted with our construction support services which include project management.
Trading Tier: Smart Sourcing Solutions
Chwai supplies and delivers building materials and engineering consumables to state-owned entities; municipalities, private developers and large construction companies that subscribe to the broad-based black empowerment policy.
There is no doubt that SME and medium-sized construction companies require urgent support. Chwai is a leading example of why contractors are able to continue their projects.
In summary, contractors are finding it extremely difficult to find funding to purchase building materials or rent essential equipment; the knock-on effect: an increased struggle to be awarded tenders and physically completing construction projects. Chwai’s vision is to support you every step of the way. Building lives, building communities and building Africa.
Enjoy what you’ve read? Please request a meeting to find out more about Chwai’s vision and service offerings. Alternatively, you can call us on +27(21) 551 2292 or email us at email@example.com.