The Property Practitioners Regulatory Authority (PPRA) is set to implement new B-BBEE (Broad-Based Black Economic Empowerment) rules, requiring all non-exempt businesses with a turnover exceeding R2.5 million to achieve at least 40 BEE points to obtain a valid Fidelity Fund Certificate (FFC). This change underscores the critical need for businesses to understand and enhance their B-BBEE compliance.

The B-BBEE scorecard evaluates companies across various categories, with preferential procurement being a key area. Preferential procurement scoring depends on the B-BBEE status of suppliers and the amount spent with them. For instance, spending on a supplier with a level 6 B-BBEE certificate counts for 60% of the expenditure towards the scorecard, while spending on a level 2 supplier counts for 125%. Hence, procuring from higher-level B-BBEE suppliers significantly improves a company’s score.

As the PPRA considers enforcing these new rules, estate agents must prioritise their procurement strategies, focusing on suppliers with strong B-BBEE credentials. Partnering with suppliers like Lightstone, which has consistently achieved a Level 2 B-BBEE status, ensures compliance and helps maintain FFCs. This approach not only boosts B-BBEE scores but also supports economic transformation and inclusivity in South Africa.

Hayley Ivins-Downes, managing executive of Lightstone’s real estate cluster, encourages estate agents to leverage Lightstone’s Level 2 B-BBEE status to meet regulatory requirements and contribute to broader economic transformation. By choosing compliant suppliers, estate agents can ensure their businesses remain competitive and aligned with South Africa’s empowerment objectives, allowing them to focus on serving their clients and growing their enterprises.