THOUGHT LEADERSHIP
Mobilising the opportunities for construction Steel, electricity and cement are among the key commodities that drive economies. As South Africa’s largest cement producer, PPC therefore recognises its role as an enabler and technology partner, says Njombo Lekula, managing director, PPC South Africa, emphasising the vital importance of public and private sector collaboration. By Alastair Currie
Njombo Lekula, managing director, PPC South Africa
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IMIESA August 2021
T
he cyclical nature of the construction sector entered new territory with the advent of Covid-19. In South Africa’s case, it deepened an already depressed civils and building market, but the medium- to longer-term outlook is positive. “The South African government has long acknowledged the vital importance of the construction sector and its role in driving an infrastructure-led economic recovery. It’s also a proven and accepted model globally, especially within the context of a postCovid-19 revival, with G7 and G20 countries investing in this area as a catalyst for socio-economic growth,” says Lekula. “As a percentage of South Africa’s GDP, construction is typically pegged at about 4%. However, if you include the influence on the rest of the value chain, the figure is far higher, with a clear opportunity to create employment,” he continues. After the 2010 FIFA World Cup boom period, South African construction lost momentum, leading to a growing infrastructure backlog, compounded by increasing fiscal constraints. The question now frequently raised is, “Where
PPC Slurry, Mahikeng, North West
will the money come from to rebuild and grow the economy?” The only workable response is that growth cannot occur in isolation and moving forward requires intensified and collective investment by the public and private sector to unlock initiatives like the South African government’s Infrastructure Fund. Essentially, it requires teamwork. “One of the starting points is to create the right enabling environment and policy framework, which empowers the private sector to assist government in reaching our common objectives. Within PPC, our proven expertise in engineering, logistics, project and programme management makes us a vital enabler in facilitating positive change and delivering on micro and macro initiatives,” Lekula explains. Within the micro space, PPC is already forging ahead with a series of SMME development programmes that support job creation and skills development within construction and allied industries. “One of the core areas that must be addressed is the widespread issue of underperformance within municipalities, which deters private sector investment and impedes the execution of infrastructure projects,” Lekula points out.
Operational strategies To weather the peaks and troughs, some two years ago, PPC revisited its business model and embarked on its Three Mega Plant strategy as the construction industry
