A partnership between the Small Enterprise Development and Finance Agency (Sedfa) and the Construction Industry Development Board (CIDB) has revived hope for emerging contractors in South Africa by officially launching R300-million Construction Fund, on Tuesday, 12 May 2026.
The launch was attended and supported by the Deputy Minister of Public Works and Infrastructure, Sihle Zikalala, Chairperson of the SEDFA Board, Patrick Makape, Chairperson of the CIDB Board, Khulile Nzo, Members of the CIDB and SEDFA Boards Director-General of the Department of Small Business Development, Thulisile Manzini, Acting CEO of SEDFA, Nkosikhona Mbatha, CEO of the CIDB, Bongani Dladla.
This initiative is expected to help emerging contractors move from the periphery to the center of the construction value chain, supporting growth in the local economy, creating jobs, supporting families and improving infrastructure development.
While many small businesses in the construction sector still struggle to grow and sustain their business, the sector employs approximately 1.2 million people nationwide, making it one of the country’s largest sources of employment.
Speaking at the launch, Small Business Development Minister, Stella Tembisa Ndabeni said that small businesses remain important to the future of the economy, due to their ability to create employment opportunities and stimulate local economies.
“Yet despite their importance, many emerging enterprises continue to face persistent barriers relating to access to finance, compliance requirements, technical support and market opportunities. Many of these businesses have the capability and determination to succeed, but they spend more time trying to survive than trying to grow.
“If we expect small businesses to participate meaningfully in infrastructure development, then the support we provide must become practical, accessible and intentional,” said Ndabeni.
Ndabeni emphasised the importance of transforming the sector by ensuring that black-owned, women-owned and youth-owned enterprises are not spectators in infrastructure development, but active participants in it.
“The fund being launched today is designed to support qualifying construction small and medium enterprises, particularly emerging CIDB-registered contractors, with affordable finance linked to viable contracts and growth potential.
“In practice, this means contract-linked funding for working capital and performance needs, alongside structured support to help enterprises meet compliance requirements and improve tender readiness,” Ndabeni said.
Hundreds of women-owned, youth-owned, township and rural businesses have received registration support, mentorship, financial management, training and market access through the intervention of Sedfa, to create over 1,200 jobs and sustained almost 2,500 jobs.
“In addition, SEDFA approved and disbursed significant financial support to 687 construction MSMEs across the country, contributing towards more than 9,000 jobs created and sustained.
“Importantly, much of this support was directed towards black-owned enterprises, alongside targeted support for women-owned businesses, youth-owned enterprises and township and rural businesses.”
Before he introduces the main of the day, Zikalala said amongst other things, the finance will be utilised by small contractors to finance the purchase of building materials and equipment.
“Today’s historic launch of the Construction Fund by the Department of Small Business Development and Department of Public Works and Infrastructure is a testament of our government’s commitment to drive inclusive growth, create Employment, build skills by supporting construction sector.
“Because when we build contractors, we build jobs. When we build jobs, we restore dignity”
