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It is anticipated that renewed investment in South Africa’s infrastructure may bring with it some overdue mega-projects – raising expectations about the construction sector’s readiness for the unusual demands of such contracts.

Is SAs construction supply chain ready for mega projects

Amit Dawneerangen, Construction Materials Executive: Sales and Product Technical at AfriSam, says that the country needs urgent and extensive investment in projects from roads and dams to wastewater treatment plants and energy infrastructure.

“We are very hopeful that this work will include a selection of mega-projects, which are capable of fuelling a quantum leap for the local economy,” says Dawneerangen." Such developments are crucial not only for economic growth but also for job creation and the stability of the construction sector.”

Projects like these create a ripple effect throughout the economy – providing opportunities not only for larger players in the construction sector, but also for smaller subcontractors. They have the effect of filtering economic relief and skills development throughout the industry.

He notes, however, that a mega-project is characterised by its requirement for a large volume of inputs over a relatively short period of time. Given the long period of depressed conditions in the local construction sector, there are concerns that the capability of supply chains have been compromised.

“Mega construction projects, by their nature, require large scale coordination, high quality materials and reliable suppliers who can deliver on time and within budget,” he explains. “This is where the resilience and longevity of companies like AfriSam come to play a strategic role in the recovery and strengthening of the economy.”

He highlights that AfriSam has established itself as a leading partner in mega-projects across South Africa over the past nine decades, and has consciously maintained its capabilities and market-leading expertise base through many economic cycles. Underpinning its capabilities are its cement manufacturing facilities alongside a nationwide footprint of quarries, crushing facilities and readymix batching plants.

“This gives us the capacity to supply from multiple plants without compromising quality, to meet the elevated demand of mega-projects,” he explains. “We also work closely with contractors in the planning of these large contracts to ensure that work schedules can be adapted to meet peak demand.”

Indeed, the earlier that planning discussions can be started between potential stakeholders in these projects, the better. One of the biggest challenges in mega-projects, for instance, is the accurate forecasting of construction material needs.

“The discussion and preparation of extended shifts and ramping up production does not always take place early enough in the planning process,” he says. “The result is that, where material volumes are underestimated, this invariably leads to last-minute surges in demand that can disrupt the supply chain and delay projects unnecessarily.”

He emphasises that, for mega-projects especially, this early-stage collaboration becomes even more imperative. In his view, it is critical that discussions start at the bidding or pre-bidding stage.

“This is particularly valuable when contracts such as large roadworks require a stringent specification of aggregate stone – where production demands a certain lead time that cannot simply be truncated to suit a revised work programme,” he explains.

When changes in project scope are made late in the process, this also create challenges – impacting on construction schedules, material demand and supplier logistics.

“The scale of these mega-projects means that any scope change – however small – has a significant effect on other players in the supply chain,” he says. “There is much less margin for error, which is why our detailed planning processes throughout our engagement with customers is a critical aspect of our value-add.”

Ensuring the quality of construction materials is paramount, particularly as safety and longevity are critical in all projects. Dawneerangen highlights AfriSam’s technological advancements in its readymix concrete operations, for instance.

“Our batching plants use computerised batching systems to ensure compliance with mix designs approved by engineers,” he says. “The quality process includes batch printouts, which serve as a form of guarantee that materials have been mixed to specification.”

Rigorous quality control testing is conducted at AfriSam’s operations before dispatch, with thorough testing being conducted on aggregates before they are delivered. Similarly, on-site sampling of concrete is performed to ensure the required strength is achieved. This commitment to quality control minimises risks and ensures that project specifications are met without compromise.

Dawneerangen highlights that environmental responsibility is an increasing focus in construction, and in mega-projects these considerations are heightened. The scale of work means that companies involved will often be listed on stock exchanges with strict reporting standards on environmental performance. There may also be multinational lending agencies involved in the funding of these projects, who bring their own global standards to bear on the contractors.

“AfriSam has long been a pioneer in sustainability, implementing environmentally friendly measures years ahead of regulatory requirements,” he says. “We were one of the first companies to ‘put our money where our mouth is’ in terms of sustainability.”

A key part of this initiative includes recycling materials including the recycling of returned concrete for use as aggregates in new concrete and road construction materials. AfriSam also prioritises the use of recycled water in its readymix plants, minimising the consumption of fresh water and mitigating the risk of any contamination.  

“Sustainability is not just an internal goal for AfriSam – it has also become an industry requirement for our customers,” he says. " Mega-projects face increasing scrutiny in terms of their environmental impact, making our sustainability practices even more valuable to the contracting fraternity.”

There is also a heightened expectation for mega-projects to contribute to local economic development by employing community members and supporting small businesses. AfriSam plays an active role in this, providing technical training to local labourers, for example.

“We assist contractors by offering best practice training in a range of fields related to our services – such as concrete placement, finishing and curing,” he explains. “We also train locals to assist in our concrete testing. Experience in these types of work helps them secure future employment once the project is complete and the contractors have moved on.”

AfriSam also runs mentorship and training programmes for emerging contractors and engineering graduates, ensuring skills development continues beyond individual projects. These initiatives provide real-world experience that prepares individuals for long-term careers in construction and materials supply.  

Dawneerangen points out that supply partners like AfriSam also need the capacity to continue supplying numerous other customers while a mega-project is underway. This requires a depth of experience to draw in resources and ramp up capacity to meet rising demand.

“It is important that, while supplying a large project, we continue to provide our existing customers with uninterrupted service,” he explains. “This needs us to be flexible and agile with our footprint of facilities, as well as with our planning ability to allocate resources where they are required.”

This balancing act requires sophisticated logistics, he says, based on the company’s strategic plant locations, fleet flexibility and human resources.

“Looking at our history, AfriSam has been a key supplier in several high-profile projects over the years,” he concludes. “Notable examples include The Leonardo in Sandton, The PwC headquarters in Waterfall and various large scale road upgrades. These projects demonstrate our ability to deliver under high pressure conditions while maintaining quality and efficiency.”