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.
