1. UNDERSTANDING TRANSFORMATION & OUR ROLE AS GOVERNMENT

2. DEVELOPMENT OF SECTOR CODES
Petroleum sector charter
Defence Sector Charter
Chartered Accountants Sector Code
MAC sector Code
Property Sector Code
Construction Sector Code
Tourism Sector Code
Forestry Sector Code
Agrii Sector Code
Financial Sector Code
The Broad-Based Black economic Empowerment Act 53 of 2003 (“BBBEE Act) provides the legislative framework for broad based black economic empowerment in SA. The “Generic” Codes of Good Practice and Sector Codes are issued under the B-BBEE
This legislation has brought the sector codes into being
Sector codes and PSC are dictated and guided by BBBEE Act
What can not be changed
Principles
Methodology
Definitions
Beneficiaries
What can be changed
Target
Weighting
QSE threshold
Additional Elements
Transport Sector Code
ICT
Sector Code
BBBEE ACT- Codes of Good Practice

3. DEVELOPMENT OF SECTOR CODES
Petroleum sector charter
Defence Sector Charter
Chartered Accountants Sector Code
MAC sector Code
Property Sector Code
Construction Sector Code
Tourism Sector Code
Forestry Sector Code
Agrii Sector Code
Financial Sector Code
Department of Defence
Department of Energy
Department of communication
Transport Sector Code
ICT
Sector Code
Department of Transport
Department of Public Works
Treasury Department
Department of Public Works
Department of Agriculture
GCIS
Department of Forestry
Treasury Department
Department of Tourism
BBBEE ACT- Codes of Good Practice

4. AMENDED PROPERTY SECTOR CODE
Amended PSC gazetted on 9th June 2017
Gazette No.40910

5. DEVELOPMENT OF SECTOR CODES
MAIN PURPOSE OF sector council office (Reason for Existence):
ENHANCE TRANSFORMATION by factoring UNIQUE KNOWLEDGE AND CHARACTERISTICS in order to DEEPEN MEANINGFUL PARTICIPATION of property participants in the main stream of SA Economy;
TRANSFORM THE
PROPERTY SECTOR

6. SCOPE OF THE PROPERTY SECTOR
Commercial Property Industry
Office Property Industry
Industrial Property industry
Retail Property Industry
Leisure Property Industry
Residential Property Industry
Houses
Community schemes
Flats, Clusters, Town Houses etc
Zoned land
Organs of state

7. RESEARCH
AIM: is to create a consolidated body of knowledge which fosters consistent understanding of the Property sector.
IN SCOPE: Research covers all other various sub-industries in the property sector.

8. Property Economic Contribution State of Transformation 2108
PSCC RESEARCH
Measured amount of existing stock by key industry in the property sector at R5.8 Trillion
Property Market Size 2016
Economic Contribution of the Property Sector to the Economy measure by expenditure, GDP, Taxes and Employment
Property Economic Contribution
2018
Analysing Transformation against the Property Sector Code 7+1 elements
State of Transformation 2108

9. PSCC RESEARCH REPORTS
The Impact of the South African Property Sector on the National Economy
2014

10. The Size of the South African Property Sector
R5.8 Trillion
Commercial
R1.3 Trillion
Residential
R3.9 Trillion
Public
R237 Billion
Zoned urban land
R520 Billion
Retail
R534 billion
Office
R357 billion
Industrial
R281 billion
Hospitality & other R94 billion
R3.9 trillion
Informal Industry
SOE
R66 Billion
Metros & selected Municipalities
R69 Billion
NDPW
R102 Billion
Zoned Urban land

11. Relative size: Capital Stock
RESIDENTIAL PROPERTY MARKET
Relative size: Capital Stock
Based on R5.8T
Market Size
Property 76% of Capital Stock

12. South African Property Sector Economic Contribution
Based on R5.8T
Market Size
R43.8 Billion
Direct Expenditure
R132.8 Billion
SOUTH AFRICAN PROPERTY SECTOR
Economic Contribution
Residential
Property Industry
Contribution GDP
R135.2
Total Jobs
R278 Thousands
R30.2 Billion
148 Thousands
Total
Taxes
R62.4
R22.5 Billion
116 Thousands
14 Thousands
Non- Residential Property Industry
End of Cycle
R83.5 Billion
R5.5 Billion
R38.2 Billion
R1.6 Billion
DIRECT
INDIRECT
R38.6 Billion
R27.4 Billion
R35.3 Billion
R1.4 Billion
R1.8 Billion
Note: In the Origination Phase we cannot distinguish between Other Commercial and Public Sector properties, so the amount inserted in the tables is a total for both these property types.

13. South African Property Sector Economic Contribution
R63.5 Billion
DIRECT EXPENDITURE
R132.8 BILLION
SOUTH AFRICAN PROPERTY SECTOR
Economic Contribution
Residential
Property Industry
CONTRIBUTION GDP
R135.2
TOTAL JOBS
R278 THOUSANDS
148.3 Thousands
TOTAL
TAXES
R62.4
R69.8 Billion
97.0 Thousands
18.5 Thousands
Commercial
End of Cycle
R51.3 Billion
R5.5 Billion
R49.3 Billion
R9.6 Billion
Based on R5.8T
Market Size
Residential
Property Industry
R22.5 Billion
R13.3 Billion
Non- Residential Property Industry
Public Sector
R11.0 Billion
R2.7 Billion
0 Thousands
Zoned land
R1.5 Billion
R0 Billion
R1.6 Billion
End of Cycle
R6.5 Billion
R0.2 Billion
14.2 Thousands

14. STATE OF TRANSFORMATION REPORT Annually on the state of
PROPERTY SECTOR
Mandated to report
Annually on the state of
Transformation
BBBEE
Level 4

15. PROPERTY SECTOR CODE ELEMENTS
Ownership
Management Control
Employment Equity
Development
Skill
Enterprise & Supplier Development
Socio-Economic Development

16. SUMMARY STATE OF TRANSFORMATION
IN THE PROPERTY SECTOR

17. SUMMARY STATE OF TRANSFORMATION
IN THE PROPERTY SECTOR

18. SUMMARY STATE OF TRANSFORMATION
IN THE PROPERTY SECTOR

19. SUMMARY STATE OF TRANSFORMATION
IN THE PROPERTY SECTOR

20. CHANGES TO THE AMENDED PROPERTY SECTOR CODE
PSCC Company classifications
AMENDED PSC THRESHOLD
DEFINITIONS
APPLICATION
SCORECARD REQUIREMENTS
ESTATE AGENTS
LARGE ENTITIES
 Large Companies
 full scorecard requirement
 Above R35M
QSE
Medium Sized Companies
Limited scorecard requirement
R2.5M – R35M
EME
 Small Companies
 Exempted
 Less than R2.5M

21. BACKGROUND & BASIC OF BBBEE
Most government entities have never had a verification conducted
Government needs to take an ACTIVE LEAD in transformation at all its spheres and entities.
Government can not promote transformation to others when its not aware of its transformation status of its internal state organs

22. BBBEE & ORGANS OF STATE
The entire SA Economy including - has to be measured against the Amended Codes of Good Practice (2013
Government Departments (National and Provinces)
Municipalities
State-Owned Entities
All State Organs – measure against Specialised Scorecard
Specialised Scorecard (does not measure ownership) but measures:
Management Control,
Skills Development
Enterprise & Supplier Development
Socio Economic

23. BBBEE & ORGANS OF STATE

24. BBBEE & ORGANS OF STATE BEE Ac t
13G.   Reporting.—(1)  All spheres of government, public entities and organs of state must report on their compliance with broad- based black economic empowerment in their audited annual financial statements and annual reports required under the Public Finance Management Act, 1999 (Act No. 1 of 1999).
(2)  All public companies listed on the Johannesburg Stock Exchange must provide to the Commission, in such manner as may be prescribed, a report on their compliance with broad-based black economic empowerment.
(3)  All Sectoral Education and Training Authorities contemplated in the Skills Development Act, 1998 (Act No. 97 of 1998), must report on skills development spending and programmes to the Commission.

25. BBBEE & ORGANS OF STATE

26. BBBEE & ORGANS OF STATE All state organs must implement BBBEE
It is not an option to implement but a must and no one is exempted to implement this Act
None compliance of this Act is gross high level of non compliance that undermines transformation
To ensure that BBBEE is a reality for Black people, section 10 of BBBEE Act requires all organs of state to integrate BBBEE requirement to awarding of contracts, grants, licenses concessions to companies that are BBBEE compliant.

27. BBBEE & ORGANS OF STATE Role of BBBEE commission
Oversee and supervise compliance to the B-BBEE Act
Investigate complaints
Maintain a register of BBBEE transaction of specific threshold
Deal with “Fronting Practices”
Defined as act/conduct that directly or indirectly undermines or frustrate the achievement of the B- BBEE objectives or the implementation of any provision of the BBBEE Act;
Misrepresentation of information or engaging in Fronting Practices may result in:
A fine and/or up to 10 Years imprisonment for individual or both; and
A company may be fined up to 10% of its annual turnover;
Any person convicted of an offence is banned from contracting with any organ of state for 10 years.

28. BBBEE & ORGANS OF STATE

29. BBBEE & ORGANS OF STATE
Amendment of section 9 of Act 53 of 2003
Guidelines for stakeholders in the relevant sectors of the economy to draw up transformation charters and codes of good practice for their sector; and Poverty alleviation
By the addition of the following subsections:
If requested to do so, the Minister may by notice in the Gazette permit organs of state or public entities to specify qualification criteria for procurement and other economic activities which exceed those set by the Minister in terms of subsection (1).
A code of good practice remains in effect until amended, replaced or repealed.’’
Amendment of section 10 of Act 53 of 2003
‘‘Status of codes of good practice
Every organ of state and public entity must apply any relevant code of good practice issued in terms of this Act in:
(a) determining qualification criteria for the issuing of licences, concessions or other authorisations in respect of economic activity in terms of any law;
(b) developing and implementing a preferential procurement policy;
(c) determining qualification criteria for the sale of state-owned enterprises; [and]
(d) developing criteria for entering into partnerships with the private sector; and
(e) determining criteria for the awarding of incentives, grants and investment schemes in support of broad- based black economic empowerment.
(a) The Minister may, after consultation with the relevant organ of state or public entity, exempt the organ of state or public entity from a requirement contained in subsection (1) or allow a deviation there from if particular objectively verifiable facts or circumstances applicable to the organ of state or public entity necessitate an exemption or deviation.
(b) The Minister must publish the notice of exemption or deviation in the Gazette.
Subject to section 9(6), an enterprise in a sector in respect of which the Minister has issued a sector code of good practice in terms of section 9, may only be measured for compliance with the requirements of broadbased black economic empowerment in accordance with that code.
Enterprises operating in a sector in respect of which the Minister has issued a sector code of good practice in terms of section 9, must report annually on their compliance with broad-based black economic empowerment to the sector council which may have been established for that sector.’’.

30. PURPOSE OF THE POLICY
Department pf Public Works through this policy, demonstrate its commitment to implementing an integrated comprehensive framework that seeks to mobilize and co-ordinate collective efforts to deliver on the Government’s Black Economic Empowerment agenda with respect to the transformation of the Property Sector.

31. COMMITMENT TO TRANSFORMATION
Department of Public Works is deliberate about transformation and its economic empowerment goals and is committed to empowerment agenda as an integral part to nation building.

32. SCOPE OF THE POLICY
Applies to all DPW with its mandate of responsibility of:
custodianship, ownership, administration and/or management of government owned land and/or properties:
Covering areas of responsibility incl:
Acquisition
Disposals
Facilities Management
Leasehold/Leased Portfolio
Municipal Accounts Management
3rd Party Contracts/Surplus Portfolio
Property Professionals
Will also apply to all private and public sector institutions, doing business with the government as it pertains to the mandates and functions covered by the policy
Scope of the Empowerment Policy and alignment to other policies and strategies
Supersedes all other government policies and strategies on black economic empowerment, as they pertain to the all activities and functions covered in this policy and/or are within the scope of the property sector codes, except in instances where the scoped activities and functions are governed by specific legislation practical solution to apply this policy is being sought.

33. OPERATIONAL AIMS Operational Aims
An improved strategic direction and coordination of the transformation initiatives by the department;
A focused and deliberate effort to identify, attract, retain and confirm qualifying black-owned enterprises to do business with the government;
Direct the structural transformation of the property sector, in as far as doing business with the Department, in order
Planned and direct interventions aimed at increasing participation and growing pool of Black owned enterprises. from doing business and transacting with the Department
To create an enabling, conducive and equitable environment for black-owned enterprises to economically thrive and continually improve skills and capabilities.

34. POLICY APPROACH & INTENT
Assist government to attain its priorities & Radical Economic transformation goals: Job creation; skill development, localisation and black industrialisation;
Align all the transformation interventions and the initiatives of the Department;
Provide inclusive economic growth by addressing skewed patterns of ownership and inequitable access
Remove structural barriers & create enabling environment for new & emerging property participants
Actively encourage preference towards direct & active participation of Black people in ownership, management and control

35. Do you Understand the policy?
What is the state of readiness to implement the Policy?

36. Are We There Yet?

37. Property Sector Charter Council
Contact person : Portia Tau-Sekati
Tel:
Cell:
Direct
Admi

38. THANK YOU