Development Action Group

"We can do the work, but we cannot access the finance." 🤝🏗️📈

This is the message DAG's Contractor and Developer Academy has consistently heard from emerging contractors across Cape Town. It is also the challenge that DAG Project Officer Nosive Ngcawe addresses directly in a newly published op-ed in Engineering News.

Writing in response to the launch of the R300 million Construction Fund by the Small Enterprise Development and Finance Agency (SEDFA) in partnership with the Construction Industry Development Board (CIDB), Nosive argues that while the fund is a welcome development, its success will depend entirely on how it is designed and implemented.

The article argues that if the fund uses only commercial lending criteria, many intended beneficiaries will remain excluded. This is not due to a lack of capability, but because their operating environments make traditional creditworthiness hard to prove.

A developmental, sector-sensitive approach to risk assessment is needed, one that considers irregular income, delayed payments, and limited credit histories common among emerging contractors in South Africa.

Nosive emphasises that the "D" in CIDB is important. South Africa needs institutions that do more than regulate; it needs institutions that actively support the growth and long-term sustainability of the contractors who will build the country's infrastructure.

Read the full op-ed via the link below.
🔗 https://www.engineeringnews.co.za/article/construction-fund-offers-opportunity-to-unlock-growth-for-emerging-contractors-2026-06-03

Construction Fund offers opportunity to unlock growth for emerging contractors By: Nosive Ngcawe - Development Action Group Project Officer The launch of the R300 million Construction Fund by the Small Enterprise Development and Finance Agency (SEDFA), in partnership with the Construction Industry Development Board (CIDB), has been widely welcomed across South Africa’s const...

Developing Cape Town's next generation of affordable housing developers 🏘️

On the 23rd of May, DAG's Contractor and Developer Academy completed the final lecture series for the current cohort of the Small-Scale Developer Programme, with graduation set for the 6th of June.

The session hosted three expert speakers: Dr Amanda Filtane from the University of Cape Town, who shared insights on construction management; Nomfundo Molemohi
from uMaStandi, who spoke on finance mechanisms; and David Beattie from the Chorus Property Group, who unpacked property development considerations.

Participants' feedback reflects the programme's objectives. "We have gained insights into the processes around finance, property management, development, compliance, and professionals in the industry that I wasn't aware of before," said one participant. "If you are interested in the industry, this is the best place to start."

This is the gap that DAG's CDA works to close, supporting small-scale developers in building the knowledge and skills they need to deliver viable, sustainable property developments and, in doing so, expanding the supply of affordable rental housing in Cape Town's townships.

Congratulations to this cohort on their upcoming graduation. We look forward to celebrating with them on the 6th of June.

🔗 dag.org.za