Estate agents face new B-BBEE hurdles

Source: Supplied. Hayley Ivins-Downes, managing executive of Lightstone’s real estate cluster.

The B-BBEE scorecard, which assesses performance across various categories with specific weightings, plays a crucial role in determining these scores. Therefore, enhancing preferential procurement practices can significantly impact and improve a company's B-BBEE scorecard results.

One of these categories is preferential procurement. Preferential procurement scoring is based on the B-BBEE status of the suppliers from which a company procures goods and services, taking into consideration the amount of money an entity spends with these suppliers.

The amount a company spends on B-BBEE compliant suppliers will result in higher points on the Preferential Procurement Scorecard. For example, procuring from a supplier with, for example, a level 6 B-BBEE certificate will only result in 60% of the rand value-spend with this supplier counting towards the Preferential Procurement Scorecard, while procuring from a level 2 supplier will result in 125% of the rand value counting towards the scorecard.

The better the B-BBEE level of the supplier, the more recognition the firm gets for the same amount of expenditure.

Supporting transformation and compliance

As the PPRA considers enforcing these new requirements, estate agents will need to prioritise how they procure suppliers and with whom they spend. Choosing a supplier like Lightstone - a provider of property data and analytics that has consistently achieved a Level 2 B-BBEE status for the past few years, ensuring their compliance and enabling them to maintain their FFCs.

In so doing, estate agents will not only enhance their B-BBEE scores and meet regulatory demands, but also contribute to meaningful change in the industry by committing to transformation and inclusivity in South Africa.

"This proactive approach allows our clients to focus on what they do best—serving their clients and growing their businesses,” says Hayley Ivins-Downes, managing executive of Lightstone’s real estate cluster.

“We invite estate agents to leverage Lightstone’s Level 2 B-BBEE status to meet regulatory demands and contribute to the broader goal of economic transformation in South Africa. By partnering with Lightstone, estate agents can ensure their business remains compliant, competitive, and aligned with the country’s empowerment objectives."