There have been new changes to the Broad-Based Black Economic Empowerment (B-BBEE) rules that will directly impact estate agents. As someone who has navigated the complexities of B-BBEE compliance before, I understand how these shifts can stir up concern and challenge the way we conduct business. The Property Practitioners Regulatory Authority (PPRA) is now requiring all non-exempt businesses with a turnover exceeding R2.5 million to achieve at least 40 BEE points to maintain a valid Fidelity Fund Certificate (FFC). This change underscores the growing importance of not just understanding B-BBEE compliance but actively improving it.
The B-BBEE scorecard, which evaluates our performance across several categories, is a key tool in this process. Among these categories, preferential procurement stands out as one that can significantly influence our overall B-BBEE score. Preferential procurement is all about who we choose as our suppliers and how much we spend with them. The better the B-BBEE status of the suppliers we work with, the more points we can earn on the Preferential Procurement Scorecard.
For instance, if we procure goods and services from a supplier with a Level 6 B-BBEE certificate, only 60% of the amount we spend with them will count towards our score. However, if we choose a Level 2 supplier, 125% of the amount spent will contribute to our scorecard. It’s clear that selecting suppliers with higher B-BBEE levels not only supports our compliance but also boosts our score for the same expenditure.
As estate agents, these new requirements mean we need to be more strategic in our procurement decisions. We must consider the B-BBEE status of our suppliers more carefully than ever. Companies like Lightstone, a provider of property data and analytics that has consistently maintained a Level 2 B-BBEE status, become crucial partners in this landscape. By choosing to work with compliant suppliers like Lightstone, we can enhance our B-BBEE scores, meet regulatory demands, and contribute to the broader transformation goals in South Africa.
This isn’t just about ticking boxes—it’s about actively participating in the economic transformation of our country. By aligning with suppliers who are committed to transformation and inclusivity, we’re not only ensuring our businesses remain compliant and competitive but also contributing to a more equitable industry.
As I reflect on these changes, I see an opportunity for us to lead by example. By embracing these new B-BBEE requirements, we can continue to grow our businesses while staying true to the values of inclusivity and transformation that are vital to South Africa’s future. Let’s use this moment to not only adapt but to thrive, ensuring that our businesses are not just compliant but are also champions of change.