Golden Highway SME
Table of Contents
Gauteng MEC for Roads and Transport, Kedibone Diale‑Tlabela, has welcomed the positive outcome of engagements between the Department, the main contractor, and local small businesses over procurement concerns that temporarily halted rehabilitation work on the Golden Highway (R553). Construction has since resumed, following the contractor’s commitment to addressing the grievances raised by affected small, medium and micro enterprises (SMMEs) in the area.
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A Turnaround in the Golden Highway Project After Constructive Dialogue
The Golden Highway rehabilitation project, a major infrastructure upgrade in Gauteng, was momentarily disrupted when local SMMEs and subcontractors raised grievances about being left out of employment and procurement opportunities. The complaints specifically revolved around the alleged non-adherence to preferential procurement regulations and perceived marginalisation of local contractors in the awarding of tenders.
In response, MEC Diale‑Tlabela took swift action. Her department facilitated urgent engagements with stakeholders, including representatives from LoneRock Construction—the appointed main contractor—and members of affected communities.
“We recognise the frustrations of affected community members, particularly concerning access to employment and subcontracting opportunities in public infrastructure projects,” said Diale‑Tlabela during a briefing on Friday, 14 June 2025.
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Background: Community Protests Disrupt Key Road Project
The R553, popularly known as the Golden Highway, is a vital link between Johannesburg and Vanderbijlpark. Its rehabilitation forms part of the broader provincial initiative to upgrade transport infrastructure, improve safety, and stimulate local economic activity through job creation and business participation.
Last week, however, work on the project came to a halt after community protests erupted near Eldorado Park and Evaton. Protesters, mostly local subcontractors and labourers, claimed that the project had failed to prioritise local hiring and empowerment clauses as required by public procurement law.
The protests included road blockades and site disruptions that forced construction workers and machines to withdraw temporarily, raising concerns over delays and rising costs.
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MEC Diale‑Tlabela Intervenes to Restore Order and Progress
MEC Diale‑Tlabela confirmed that her department responded with urgency upon learning of the protests. “It is for this reason that, upon being made aware of the challenges, we immediately intervened and held engagements with affected parties,” she said.
The department’s approach was built on three core principles:
1. Fair and inclusive participation of local businesses;
2. Lawful engagement channels;
3. Transparent procurement oversight.
As a result of these engagements, LoneRock Construction resumed work after committing to adjust procurement processes to ensure meaningful inclusion of local SMEs. Among the commitments made were:
• Allocating a percentage of subcontracting work to local businesses;
• Ensuring that employment opportunities are first made available to residents from affected wards;
• Opening regular communication between the contractor and community liaison structures.
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Reinforcing Inclusive Economic Development
The MEC reiterated her department’s vision of inclusive economic transformation. “As the Department of Roads and Transport, we remain fully committed to the principles of inclusive economic transformation, community empowerment, and transparent procurement processes, in accordance with national legislation,” she emphasised.
She also urged businesses and individuals to make use of formal grievance platforms such as:
• Ward councillors,
• Project steering committees, and
• Project liaison offices, instead of resorting to disruptive protest actions.
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Condemnation of Intimidation and Site Violence
While recognising the legitimacy of the community’s frustrations, Diale‑Tlabela took a strong stance against unlawful behaviour. She condemned all actions of extortion, intimidation, and violence at project sites.
“The department condemns any acts of violence, property damage, or obstruction of public roads. We urge all affected parties to operate within the law as we work towards a solution that embodies fairness, transparency, and inclusivity,” she said.
This balanced approach reflects the department’s zero-tolerance stance on criminality, while still holding space for genuine economic redress.
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Commitment to Project Delivery and Compliance
Despite the temporary disruption, Diale‑Tlabela assured the public that the project remains on course. “Notwithstanding the delays, the project should be delivered within budget and without unnecessary delays,” she stated.
The Department of Roads and Transport has also launched an internal review of the procurement and employment processes used on the project. This review is intended to ensure full compliance with Preferential Procurement Policy Framework Act (PPPFA) regulations and other legal requirements.
“If any non-compliance is identified, the department will take corrective actions to ensure accountability and prevent future occurrences,” the department said in a written statement.
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Progress Update: Golden Highway Project Scope and Status
The Golden Highway project is designed to:
• Upgrade road surfaces between Johannesburg South and Vanderbijlpark;
• Improve intersections and pedestrian crossings;
• Introduce stormwater drainage systems to reduce flood risk;
• Create temporary employment for at least 200 local residents;
• Subcontract at least 30% of the total contract value to targeted groups, in line with BBBEE requirements.
As of 15 June 2025:
• 60% of initial roadworks between Eldorado Park and Nancefield have been completed;
• 80 subcontractors have been engaged, with 32 coming from affected communities;
• Local women- and youth-owned businesses have started receiving capacity support.
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A Model for Future Projects: Constructive Engagement
The MEC said this experience offers valuable lessons for future infrastructure projects. She advocated for a model that prioritises early community consultation, the establishment of formal engagement structures, and contractor accountability.
“We remain open to engaging all stakeholders to strengthen our collective commitment to transformation, empowerment, and socio-economic development in the communities we serve,” she added.
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Public Reactions and Civil Society Input
Local business forums and ward committee members welcomed the MEC’s intervention. One SMME representative from Orange Farm said, “We don’t want to stop development—we want to be part of it. Now that the department is listening, we are hopeful.”
Civil society groups have also praised the response, urging the department to publish progress reports monthly and make procurement details public to ensure continued transparency.
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