The Property Sector achieves a Level 4 B-BBEE recogniton

July 13, 2018

BEE CHAMBER / 12 JULY 2018 - 13.07 / REABETSOE NENGWENANI

 

 

The South African Property Sector hosted its annual conference on the State of Transformation in South Africa, where it highlighted its success rate in the economy and the areas which are required to improve.

 

The Property Sector is one of the largest sectors in the South African economy, with a property market size of R5.8 trillion in 2014/2015. The research report presented by Prof Barry Standish from StrateCon revealed that direct GDP contribution by the property sector was R59billion (1.5% of GDP) and the sector had created 100 000 direct jobs in 2015, a growth of 5% from 2013. This painted a great landscape on the size and magnitude of the Property Sector and the position this sector plays towards the wellbeing of the economy.

 

 

 

The report on the State of Transformation in the Sector, which was presented by Portia Tau-Sekati (CEO of Property Sector), indicated some level of improvement in the industry however this was at a slow rate in 2016/2017.

 

The South African Property Sector average B-BBEE Recognition is a Level 4. This is the same level as the previous year but with a slight drop in actual points scored.

 

Portia Tau-Sekati, CEO of Property Sector,  with Anusha Mariemuthu (left) 

and Reabetsoe Nengwenani (right)  from the The BEE Chamber

 

 

The Scorecard Elements which had seen some improvement, were the Enterprise Development and Socio-Economic Development elements

 

The Elements which indicated a need for great improvement were the Management Control and Employment Equity elements.

 

The scorecard below provides a snapshot on the level B-BBEE compliance within the industry.

 

 

Level of Compliance

 

Ownership                                     80%

 

Management Control                    57%

 

Employment Equity                       32%

 

Skills Development                       65%

 

Preferential Procurement              83%

 

Enterprise Development              105%

 

Socio Economic Development     117%

 

Economic Development                38%

 

 

Plans to improve the Sector require meaningful participation by Corporates in the Sector.

 

The Sector also noted a requirement to unlock obstacles of ownership of property by enabling access to finance (with continued collaboration in the Financial Services Sector).

 

Plans are also required to promote the advancement of a transformative workforce in the industry and increase investment in Skills Development.

 

The event also addressed the topical discussion around land expropriation and its impact on the Property Sector, presented by the Deputy Minister of Public Works, Jeremy Cronin.

 

 

The event also addressed the topical discussion around land expropriation and its impact on the Property Sector, presented by the Deputy Minister of Public Works, Jeremy Cronin.

 

A brief address was done by Busiswa from The BEE Commission and Tashmia, CEO of YES,  highlighting the purpose of their organisations and the impact the Property Sector can have on the state of BEE compliance and the state of Transformation. 

 

For further insights on the discussions held on the day, please look out for the BEE Chamber’s video series.

 

 

Article : Reabetsoe Nengwenani, Technical Specialist, The BEE Chamber

 

 

 

 

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