CBPM 2025 · Vol. 2025, Issue 1

An Appraisal of Procurement Challenges Facing Emerging Contractors in Public Sector Projects in South Africa

Sibabalo Edmond Bangani, Modupe Cecilia Mewomo, Cyril Chinonso Ejidike, Francis Kwesi Bondinuba and Collins Ameyaw

Keywords: Challenges, Emerging Contractors, Procurement, Small businesses, South Africa

Abstract

In South Africa and around the world, economic development cannot be discussed without small businesses and the impact of the construction industry on the economy. Emerging contractors' underperformance in public procurement of construction projects is a cause for concern as small businesses underpin economic growth in South Africa. Despite limited capital and financial resources, small and medium enterprises are inventing new goods and technologies to rejuvenate and advance the industry by contributing to innovation, poverty reduction, and job creation. This paper examines the challenges in South Africa's public sector procurement for emerging contractors. A quantitative approach was employed with a well-structured questionnaire survey amongst the Construction Industry Development Board (cidb levels 4 and 5) as General Builders and Civil Engineering (CE) emerging contractors on procurement challenges. The study used a random sampling technique. Seventy-five responses were received from the Participants for the analysis of the study. The result shows that late payments by the state government, political interference, and poorly managed cash flows are among the challenges faced by emerging contractors in the South African construction industry, hindering their growth in the procurement of public projects. This study assesses the challenges faced by emerging contractors in the procurement process, identifies the key challenges that need to be addressed to help emerging contractors operate efficiently in the construction sector and provides a systematic insight into the procurement challenges faced by emerging contractors and how this affects their performance in the construction industry.