The South African property sector is making reasonable efforts towards transformation, but it needs to pick up the pace, says the Property Sector Charter Council (PSCC).
The PSCC this week released the results of its ‘2016-2017 State of Transformation Report’, which sampled institutional investors, large private property owners, collective investment schemes and listed property entities.
It found that the property sector achieved an average broad-based black economic empowerment (BBBEE) recognition of Level 4.
“The research shows that the commitment to transformation varies across the sector. The commercial property sector leads the progress in transformation. On the other hand, the residential property sector is lagging behind, with a very limited number of BBBEE certificates submitted.
“Furthermore, the report shows the public sector is not taking the active lead in transformation that is expected of it to further the transformation agenda, based on its limited submissions,” said PSCC CEO Portia Tau-Sekati.
Specifically, the property sector achieved excellent scores in enterprise development (105.6%) and socioeconomic development (117.2%); scored well on ownership (80.2%) and preferential procurement (83.7%); but scored poorly in skills development (65.7%) and management control (57%), as well as employment equity (32%) and economic development (38%).
“Management control, employment equity and skill development are interrelated. This trio of low performers shows an under-representation of black people and black women in all levels of management, including board participation,” said Tau-Sekati.
Further, the lack of performance in skills development will perpetuate the present transformation scenario.
“It is critical that enterprises in the property sector adequately invest in skills. This must be strongly linked to employment equity, which is the lowest scoring element against the set target. There are pockets of excellence in the several companies reporting on their efforts, but this has not translated to success at sectoral level.”
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 advised.