Market analysis

• Currently we are offering our services to local municipalities, district municipalities, government parastatals and provincial government in the Western Cape Province. These prospective clients are set to grow to fulfill government’s Expanded Public Works Program (EPWP);
• The government’s expenditure in the construction industry in the Western Cape is R 3 billion for this financial year;
• Our competitors are mostly White-owned companies. Even the Black Empowerment companies are not 100% Black-owned. Their pricing is generally higher than ours. That is partly due to that they are long established and they are used influencing the market. Their services are of high quality. However they will panic once they realize that our company is already starting to capture the sizable share of the market. They are most likely to under-price and increase their Black shareholding. We are also keeping a watchful eye on bribery activities – we have already laid a complaint at one of the municipalities regarding irregular awarding of the tender; and
• We are not just a Black Empowerment Entity – we are 100% Black-owned. Our pricing is on par with our established competitors. We are directly involved on the site. We sit in openings of tender bids – in that way we know exactly what our competitors have priced. We do checks on their BEE status as claimed. We lay a complaint f there is irregularity, which can lead to corruption charge. We use these measures to ensure that we are not excluded unfairly.