Trans­for­ma­tion lag­ging be­hind in res­i­den­tial

The Star Early Edition - - NEWS - Roy Cokayne

THE PROP­ERTY sec­tor needed to pick up the pace of trans­for­ma­tion, par­tic­u­larly the res­i­den­tial prop­erty sec­tor, de­spite the sec­tor mak­ing “rea­son­able ef­forts” to­wards trans­for­ma­tion.

Por­tia Tau-Sekati, the chief ex­ec­u­tive of the Prop­erty Sec­tor Char­ter Coun­cil, said the res­i­den­tial prop­erty sec­tor was lag­ging be­hind, with only a very lim­ited num­ber of broad based black eco­nomic em­pow­er­ment (BBBEE) cer­tifi­cates sub­mit­ted.

Tau-Sekati also said at the re­lease of the 2015-2016 State of Trans­for­ma­tion Re­port for the Prop­erty Sec­tor that the pub­lic sec­tor was not tak­ing the ac­tive lead ex­pected of it to fur­ther the trans­for­ma­tion agenda.

The re­lease of the re­port co­in­cided with the gazetting of the long-awaited amended prop­erty sec­tor code on Fri­day.

Tau-Sekati said over­all the prop­erty sec­tor achieved an av­er­age BBBEE recog­ni­tion of Level 4.

“This is rea­son­able based on the pre­vi­ous score­card. How­ever, the sec­tor will have to work harder to re­tain Level 4 based on the new BBBEE recog­ni­tion scores,” she said.

New re­search

Tau-Sekati said the new re­search re­port sam­pled 72 com­pa­nies to mea­sure trans­for­ma­tion in the in­dus­try, which may be small in num­ber, but ad­e­quately re­flected the in­dus­try out­look be­cause it cov­ered the large com­pa­nies that dom­i­nated the sec­tor.

She said the sec­tor’s trans­for­ma­tion un­der the pre­vi­ous code was mea­sured on eight points, with ex­cel­lent per­for­mance achieved against the tar­geted weight­ing for en­ter­prise de­vel­op­ment and so­cio-eco­nomic de­vel­op­ment.

Tau-Sekati said rea­son­able but be­low tar­get per­for­mance was achieved for own­er­ship and pref­er­en­tial pro­cure­ment.

How­ever, she said more fo­cus was re­quired on skills de­vel­op­ment, man­age­ment con­trol, em­ploy­ment eq­uity and eco­nomic de­vel­op­ment.

“Man­age­ment con­trol, em­ploy­ment eq­uity and skills de­vel­op­ment are in­ter­re­lated, so it is un­sur­pris­ing that the un­der-per­for­mance of the three el­e­ments comes as a pack­age.

“It is dif­fi­cult to achieve one of th­ese three key im­per­a­tives with­out another,” she said.

Tau-Sekati said th­ese three low per­form­ing el­e­ments showed that there was an un­der-rep­re­sen­ta­tion of black peo­ple and black women at all lev­els of man­age­ment, in­clud­ing real board par­tic­i­pa­tion.

“You need to have black peo­ple and women in man­age­ment and in­vest their tal­ent to achieve skills de­vel­op­ment tar­gets.

“By the same to­ken, you need to in­vest in skills man­age­ment to achieve your tar­gets for tal­ented black man­age­ment in the fu­ture,” she said.


Tau-Sekati added that the lack of per­for­mance in skills de­vel­op­ment would per­pet­u­ate the present trans­for­ma­tion sce­nario, adding it was crit­i­cal that en­ter­prises in the prop­erty sec­tor ad­e­quately in­vested in skills de­vel­op­ment.

“The sec­tor needs to pro­mote skills de­vel­op­ment at a sec­toral level rather than on a com­pany level. This needs to be done in col­lab­o­ra­tion with aca­demic in­sti­tu­tions to build a cur­ricu­lum that meets cur­rent and fu­ture needs,” she said.

Tau-Sekati said eco­nomic de­vel­op­ment was the low­est scor­ing el­e­ment against its set tar­gets, but there were “some bright lights” be­cause of rea­son­able ef­forts un­der­taken by most of the sec­tor’s larger com­pa­nies.

Lead­ing ex­am­ples of this were the de­vel­op­ment of shop­ping cen­tres in town­ships and some ru­ral ar­eas, she said.

“While it makes busi­ness sense that the prop­erty sec­tor tar­gets in­vest­ment op­por­tu­ni­ties at ar­eas with rel­a­tively high in­come, we hope the fu­ture di­rec­tion will lead the sec­tor to match this with a por­tion of in­vest­ment into the poor­est ar­eas, those that are com­pletely un­der-re­sourced, and where de­vel­op­ment is needed the most,” she said.

Tau-Sekati said the amended prop­erty sec­tor code ap­plied the lessons learnt on the sec­tor’s trans­for­ma­tion jour­ney so far, in­clud­ing the find­ings of the lat­est re­search, while also ad­dress­ing some of the pre­vi­ous gaps and align­ing other leg­is­la­tion and poli­cies to en­sure that trans­for­ma­tion in the prop­erty sec­tor con­tin­ued at the re­quired pace.

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