“I realised that the engineering sector has very few black owned companies, and after my long stint in the corporate sector decided to start my own business. I invested a lot of my own capital to start the business because I believed I could make it work” says Myeni. Myeni has lived up to his self-belief, Isisekelo’s first client was Universal Coal for a turnkey project to design and construct a pollution control dam for their waste discard facility.
After that break, the company has not looked back and is creating a name for itself in mining sector especially the highly specialized niche market of waste control design and construction.
“This area of civil engineering is dominated by white companies, and while there are black companies in civil engineering, most are in the construction of homes and roads, we have thus created a niche market for ourselves particularly in the design and construction of waste facilities and mining infrastructure” explains Myeni.
The company is registered with the Construction Industry Development Board (CIDB) as level 6 for mechanical engineering work. It employs twenty (20) permanent employees and depending on projects, often employs more on fixed term contracts.
Myeni approached the Gauteng Enterprise Propeller (GEP) for funding to source equipment to help grow the company’s asset base and to improve the cost effectiveness of Isisekelo. “We were spending a lot of money renting equipment for earthworks due to the nature of our work, and we believe it is more cost effective for us to own equipment, hence we approached the GEP. With the funds sourced from the GEP, we have been able to acquire earthworks equipment and we believe that this investment will take us to the next level of our growth path” says Myeni.
Myeni’s immediate goal is to grow the company and it make it more sustainable, so it can be less susceptible to cash flow challenges. “We are looking at sourcing longer term contracts that will make easier to predict and manage cash flow. The company is building a portfolio of clients across the country including the Northern Cape and the North West. “We are fabricating a conveyor structure for a company called Manganese Resources in the Northern Cape. We are also doing design work for a company called Vametco Minerals in the North West, and we have clients in Mpumalanga as well” he says.
Myeni believes that access to capital is the biggest barrier to entry into the market. “There are very few black companies in the industry, partly because of skills set, but mainly because the industry is very capital intensive.
Clients are not prepared to pay 40% upfront, and banks will look at your balance sheet and decline your funding application. In addition to that, small businesses must contend with unfavorable payment terms. It is thus very important that there is support for businesses that are seeking to enter and grow in the sector” he concludes.