Property Sector Transformation Charter

1
Property Sector Transformation Charter

• Portfolio Committee Presentation
• 14 September 2005

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INTRODUCTION

• Recognising
• the transformation developments in other sectors
• the significance of the property sector in SA
  economy
• that the sector needs to transform and
• the challenges faced by the sector in achieving
  broad base economic empowerment
• In line with Governments BEE Strategy, the
  Property Stakeholders initiated a transformation
  process which was launched by the Minister by end
  of 2004.

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Process

• Steering Committee made up of all stakeholders
  (public and private sectors)
• Exco management of the process
• Technical teams technical drafting
• Administration day-to-day affairs.

4
CONSULTATION PROCESS

• Representative of the EXCO have been on road
  shows to present the draft charter, and hear
  concerns of stakeholders in the provinces.
• The Property Sector Transformation Charter Indaba
  was held in Gauteng as part of a continued
  campaign to consult with stakeholders.
• A steering committee meeting on regular basis to
  get agreement of the framework and scorecard.

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Framework document

• Preamble
• Challenges facing the property sector
• Objectives of the Charter
• Application and governance
• Elements of the Framework
• Regulatory issues
• Gender transformation
• The scorecard
• Definitions

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Elements of the scorecard

• Ownership
• - Voting rights
• - Economic Interest
• Control
• Employment Equity
• Skills Development
• - skills spend
• - learnerships
• - mentorships

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Elements of scorecard (contd)

• Procurement
• Enterprise Development
• Residual
• - CSI
• - Development in under-developed areas
• - Gender transformation policy (Ministers
  comments)

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Scorecard

• Ownership
• Control
• Employment Equity
• Skills Development
• Procurement
• Enterprise Development
• Residual

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Issues

• Targets are valid for 5 years.
• Review progress after 3 years
• Consistent with sound business practice.
• First reports to be produced year ending 31
  December 2006.
• Submission 31 March 2007

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Way Forward

• Charter document submitted to Minister
• Minister sent document back with comments for
  reconsideration by stakeholders
• Submission to DTI
• Cabinet approval
• Gazeting as Code of Good Practice
• Establish Charter Council

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THANK YOU