Malaysia‘s Ho Hup Corporation, South Africa managing director Theunis Crous and National African Chamber of Commerce and Industry Eastern Cape construction (Nafcon) regional chief executive Xolani Tengo were talking yesterday after signing a far-reaching memorandum of understanding.

“We have been looking for a ‘big brother‘ to help members progress in the industry and have found one in Ho Hup,” said Tengo, whose regional organisation represents around 5000 emerging entrepreneurs.

“Because of its size and level of certification, Ho Hup can bid on contracts running into hundreds of millions of rands, while most of our members can seek contracts worth only around R250000.

“Through our agreement, Ho Hup will work with Nafcon to sub-contract to emerging building companies, which have continued to be disadvantaged, despite empowerment rules, which seem still to benefit only a select few,” Tengo said.

Crous said Ho Hup SA, with its operations headquarters in Port Elizabeth, was confident of being awarded contracts worth several hundreds of millions rands in the Eastern Cape and other parts of the country.

“We have set up the company and met all the requirements, so we are about to start in a big way.

“Our executives in Malaya – where Ho Hup began in 1960 and listed on the stock exchange in 1973 – decided the operation in South Africa should seek a partnership with an organisation that would play a role in spreading the benefits of undertaking major contracts as widely as possible.

“They believe Nafcon fits this ideally as its members will not only benefit from many hundreds of jobs being created, but will also be trained, mentored and given expert assistance to ensure regulations are met by Ho Hup, which can also provide the required construction equipment.”

Crous said that the company was close to concluding several contracts, including building 1700 houses in various parts of the province.

“That will be the start of our pioneering effort to sub-contract, creating up to 800 jobs in this one project.”