B lack contractors in South Africa have decried low black ownership of the property sector in the country which they says currently stands at 7%.
South African Institute of Black Property Practitioners(SAIBPP) Chief executive Tholo Makhaola says that black contractors in South Africa continue to be constrained by lack of access to finance and lack of access to land while companies that demonstrate blatant disregard for B-BBEE and transformation benefit from grants and assistance made possible by public funds.
He was commenting in regards to the launch of Mooikloof Mega City project in east Pretoria that is being developed by JSE-listed Balwin Properties, where he observed that black-owned companies were excluded from the project.
In a statement, Makhaola noted that the move demonstrates the government’s unwillingness to address the issue of transformation in the property sector and built environment.
“The public endorsement of this development and its inclusion as part of the SIDS targeted list of projects is a slap in the face to all patriotic South Africans who are committed to structurally transforming our economy and demonstrates once again,” he offered.
‘A project of this magnitude, R£34bn, that forms part of the state-led SIDS programme should have clear, measurable targets with respect to black, female and youth participation at all levels of the value chain,” he added.
Mooikloof Mega City project is a mega residentail project that is being constructed at a cost of over R34 billion and is one of the 62 Strategic Integrated Projects (SIPs) that were gazetted at the end of July.
all approved SIDS projects All companies who submit projects for the SIDS programrne must commit to procuring 40% of all materials and professional services from South African owned black and women-owned compa-nies
SAIBPP now wants all companies who participate in the SIDS programme and who have submitted projects as part of the SIDS programme must be able to produce at least a Level 2 B-BBEE certificate.
Additionally, the practitioners wants all companies participating in the SIDS programme should demonstrate how they intend to partner with, JV with or ensure meaningful economic and skills transfer during and after the project.
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