20th Anniversary of the Power Group

October 2003

Sibakhulu’s achievements add sparkle to Eastern Cape

Sibakhulu Construction is a name that has become almost synonymous with development in the Eastern Cape. Within five years of its establishment this emerging company, has established its reputation and the English meaning of its name - “we are great.”

Currently, Sibakhulu in involved in one of South Africa’s largest civil projects - the development of the R2,65-bn Port of Ngqura, South Africa’s newest deepwater port that is to form an integral part of the Coega Industrial Development Zone (IDZ). Sibakhulu is carrying out the bulk excavation of five million cubic metres to the harbour basin at Coega. It is also busy constructing Neptune Road, a major access road into the IDZ from Coega, and Fairview, a major township in Port Elizabeth.
The Coega IDZ is 20km east of the city of Port Elizabeth, in the Nelson Mandela Metropolitan area.
Speaking at a function to mark Sibakhulu’s fifth anniversary - and the 20^th anniversary of the Power Group - Sibakhulu’s managing director, Mr Dumisa Mcetywa, said his company is more than ever optimistic about the future of the region. Prospects are good, though challenges lay ahead especially those arising as a result of the AIDS pandemic.
The function was held in the Tsitsikamma Conference Centre at the Emfuleni Boardwalk Resort in Port Elizabeth, where a few years ago Sibakhulu Construction had completed the civils work for this newest landmark in the Nelson Mandela Metropole.
He told a gathering of guests, including politicians, professionals associated with the construction industry, senior government officials and clients, that looking back it was hard to believe that Sibakhulu could achieve what it had done in only five years.
“Teamwork that exists within the Power Group carried us through the difficult period that we experienced during our first two and a half years, and Graham Power’s leadership was a strong motivator that kept us going and prevented us from disinvesting and walking away from the region,” he said.
Mr Mcetywa added that prospects had heightened during 2002 and there are now indications that government spending may increase and a number of projects in the pipeline, especially on the former Transkei region, may eventually get underway.
“There is a need for infrastructure in this province, and it is possible that we may become involved in the development of roads. Rail links are also to be created, especially as a result of the Coega development,” said Mr Mcetywa.
“There has also talk in the past few years about rural housing development in the Eastern Cape, more especially in the former Transkei region. We see this as an opportunity that could soon arise because of the need.”
“I am most optimistic about the future, but we have to look at our challenges. The most serious of these is the question of AIDS, and the only way that we can cope with this problem is for us to continue training people, especially machine operators,” he said.
“Apart from this there is the need for social upliftment, and the continued training and development of people, and while spending money on all of these programmes we still have to maintain a sound and strong business so that we can always provided service excellence,” he said.

Foundation

With its vision - “to be recognised and respected as the first choice supplier of civil engineering services in the Eastern Cape” - Sibakhulu Construction started as an empowerment joint venture with Power Construction East Cape in 1998. This came a year after the establishment of Hughmic Construction in Cape Town - the first emerging company to be associated with the Group. Sibakhulu Construction’s first project was to build 2 000 schools throughout the Eastern Cape. In 2002 Power Construction East Cape was sold to and incorporated into Sibakhulu Construction.

The directors of Sibakhulu Construction include prominent leaders within the former company. They are Mr Dumisa Mcetywa (managing), Mr Mthiwabo (Mike) Ndube, well known in Eastern Cape political circles, Mr Glenville Cullum, and Mr Jacques du Preez.
Because of Sibakhulu Construction’s association with the Power Group, the company has a culture that is aimed at restructuring community pride. While its focus is on creating functional structures in concrete and steel, the company takes a wider view of the heart and soul of the community from which it draws its workforce. The company is proud of its true community orientation, ever involved in training and providing utilities and facilities for the community. The company believes it is positioned to play a significant role in shaping the future of the Eastern Cape.

Housing

At the celebration in Port Elizabeth, Mr Mark Julie, of Power Developments, announced that in a further restructuring of the Group, Khayalethu Projects had been established. This newest and third emerging company in the Group is to comprise a shareholding of 51% held by previously disadvantaged people and 49% Power Developments. The objective of Khayalethu Projects is to provide affordable homes throughout South Africa.

Guests were told that the Power Group had provided more than 30 000 affordable homes in the past 5 years.

The Chief Executive of the Power Group, Mr Graham Power, told guests that he had started business from a stable converted into an office at Elandskloof on Sir Lowry’s Pass in 1983.

“I am extremely thankful for the fantastic breaks and positive opportunities we have had, which have enabled us to grow to where the company is today,” he said.
He added that he was pleased that the Power Group had invested in the Eastern Cape, and it was a joyous occasion when the Power Group decided to sell a 51% shareholding to Sibakhulu Construction.

Genuine

“This is not a fronting organisation, but it is indeed a genuine empowerment company,” said Mr Power. “Through the Group to our associates 88,5% of our 1 600 people are people of colour,” he told guests. “I am also happy to say that within the 20 years of our existence we have not had the need to retrench one person, which is a unique achievement in business today.

“There is a family spirit within our group and one of the cornerstones of which we are proud is that we talk about promotion from within. We hope that we can continue to grow at a reasonable pace to give people the opportunity to develop from within our organisation.
“We have a 100-year dream. It is true that none of us will be around to see it happen, but we are committing ourselves to developing and training people and not to say that we want to make as much money as we can in our lifetime, and what follows is somebody else’s problem,” he said.
“I am absolutely convinced that South Africa’s, and Africa’s, time has come. The dark continent, with all the problems we hear about - we hear about 20-million AIDS orphans by the year 2020 in sub-Saharan Africa - will see a major turnaround through a spiritual revival,” he concluded.
Mr Andre’ du Preez, the managing director of Power Construction, said it was good to be visiting an area where the construction industry is showing good signs of revival, with an increase in government and private spending.
“We see a great opportunity for the construction industry in this region,” he said.
“Education and training is a passion of our Group and last year we employed more than 60 students with a view to picking the top candidates for bursaries for this year. We provided 17 full-time bursaries, and in other cases part-time bursaries, for young people. We have a similar vision for the year 2004,” he told guests.