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SMMEs in the Eastern Cape stand to earn over R6 billion by the projected end of the N2 Wild Coast mega project, with the government saying that the socio-economic impact of the R20 billion project will be a significant injection for local communities.
On Friday, Transport Minister Sindisiwe Chikunga led a high-level delegation on a site visit to the Msikaba Bridge project.
According to a statement, the Minister said that the project was progressing well and that it “had significant employment and benefits for SMMEs over the short-term and would help bring tourism and socio-economic development to the area over the long term.”
“The minimum 30% expenditure earmarked for targeted enterprise subcontractors and suppliers means that, by the end of the project in 2028/29, more than R6 billion will have flown to SMMEs, the majority of which will be from the OR Tambo and Alfred Nzo Districts,” the statement said.
More than R1 billion will also be spent on wages and skills training for locals by the anticipated end of the project in the 2028/2029 financial year.
Minister Chikunga said this was one of the mega-projects in South Africa which is going to help to change the lives of the people living in this area by creating thousands of new jobs, training our people, creating opportunities for SMMEs, for women and youth, and for the communities as a whole.
SANRAL Southern Region Manager, Mbulelo Peterson, said the Msikaba Bridge project, which is valued at R1.72 billion, has created employment opportunities for over 400 local community members to date.
He said it also created an equivalent of over 2 700 full-time jobs, with a wage bill of R80.8 million by the end of March this year.
“A further 114 SMMEs have also benefitted from project participation opportunities to the tune of R483 million,” said Peterson.
SANRAL CEO Reginald Demana said the N2 Wild Coast Road is one of the biggest projects which SANRAL is constructing in South Africa.
“It is significant not only for Pondoland and the Eastern Cape province but will act as an economic artery to the rest of the country,” he said.
Meanwhile, SANRAL said the construction of the over R4 billion Mtentu Bridge project was awarded to China Communications Construction Company, and MECSA Construction Joint Venture, last November.
The estimated construction start date is 5 August 2023.
