Unfinished houses in Silversand, Blue Downs. South Africa’s construction sector generates 130 000 jobs a quarter and is heading into a R1 trillion infrastructure cycle, but the businesses delivering the work still struggle to access the construction finance they need to mobilise projects from day one.
SOUTH Africa’s construction sector generates 130 000 jobs a quarter and is heading into a R1 trillion infrastructure cycle, but the businesses delivering the work still struggle to access the construction finance they need to mobilise projects from day one.
Speaking at the 14th edition of Big 5 Construct South Africa, Clinton Thomas, Head of Product at Lula, brought this reality to light.
“The cash flow problem facing construction SMEs is not a symptom of poor management; it is baked into the project cycle itself. The business wins the tender, orders the materials and starts the work, but payment only arrives months later.
“This is the reality of construction financing in South Africa, where contractors often need access to working capital long before they can invoice or receive payment. Timing is everything. Instead of bottlenecks, SMEs need finance that gets them on site with the right materials at the right time,” Thomas said.
