The Property Sector makes a considerable contribution to the GDP

The property sector makes a considerable contribution to the GDP

…making it a catalyst for economic growth and transformation

The Property Sector Charter, which establishes a framework and principles upon which transformation will be implemented in the sector, has committed to strive for a transformed property sector in South Africa and to promote a vibrant and growing sector that reflects the South African nation as a whole, contributes towards development and the establishment of an equitable society.

As a large contributor to the economy, the sector has a significant role to play in transformation. Despite legislative and policy interventions to eradicate inequalities, participation in the sector poses a challenge inhibiting the sector from making a meaningful and progressive contribution towards transformation. Signs of growing improvement are present, albeit at a slow pace and seemingly not yet deep enough.

Opportunities do however exist to make a meaningful contribution towards transformation. The sector is showing growth in the elements of Enterprise and Supplier Development as well as Socio-Economic Development, with Ownership progressing well. The challenge lies in the elements of Management Control, Employment Equity and Skills Development where the sector is not making an impactful contribution as yet. The sector continues to draw further and further away from achieving the milestones set towards these elements. A turnaround point is, therefore, urgently required to address the challenges in these areas. Compliance box-ticking is however, never the solution.

Industry players such as Liberty Two Degrees (L2D) are making a concerted effort towards providing an empowering and enabling environment that embraces purposeful transformation, diversity and inclusivity through good governance. The company is making good progress in contributing towards closing the gaps that exist in the property sector, responding relatively well to the key elements that drive good transformation in the areas of Management Control, Employment Equity and Skills Development. L2D, through various initiatives, is aiming to make continuous progress, reflective in the company’s policies across governance, human capital and procurement initiatives. One of the key challenges being addressed is the lack of entrepreneurship and business skills, which predominantly impact black-owned entities that struggle to take their businesses from survivalist or micro-level to sustainability. To aid in addressing this challenge, L2D has partnered with Akandi, an office solutions entity to supply workplace furniture for the L2D office. Furthermore, L2D has provided capital in order to propel the Akandi business forward from an enterprise development perspective aiding in taking the business to sustainability and profitability.

Drawing from the learnings of the property sector benchmark to better a company’s position in the BEE scorecard plays a significant part in achieving B-BBEE goals however, it is imperative to aim to deliver beyond the minimum requirements of the legislation in order to make a meaningful contribution and effect a significant impact. This means placing more robust programmes that make a material difference to positively influence Management Control, Employment Equity and Skills Development to improve the current performance of these elements as well as enhancing the current offerings in Enterprise and Supplier Development and Socio-Economic Development.