Property Newsletter | June 2024
Estate Agents can leverage Lightstone’s Level 2 B-BBEE status to remain compliant
As the Property Practitioners Regulatory Authority (PPRA) prepares to enforce stricter B-BBEE requirements, Lightstone’s Level 2 B-BBEE status offers significant advantages to Estate Agents. Lightstone, a leading provider of property data and analytics, has consistently achieved a Level 2 B-BBEE status for the past few years, underscoring its unwavering commitment to transformation and inclusivity in South Africa. By choosing Lightstone, Estate Agents not only enhance their B-BBEE scores, ensuring they meet regulatory demands, but also contribute to meaningful change in the industry.
Helping Estate Agents navigate new regulations
The upcoming changes in B-BBEE rules from the PPRA mean that all non-exempt businesses (over R2.5 million turnover) will need at least 40 BEE points to secure a valid Fidelity Fund Certificate (FFC). This shift is especially critical for small businesses and sole proprietorships, which constitute a significant portion of the real estate industry in South Africa.
How preferential procurement can improve B-BBEE scores
The B-BBEE scorecard measures the level of compliance against different categories, each of which are in turn measured against targets with specific weightings. One of these categories is preferential procurement. Preferential procurement scoring is based on the B-BBEE status of the suppliers a company procures goods and services from, taking into consideration the amount of money an entity spends with these suppliers. The amount you spend on B-BBEE compliant suppliers will result in higher points on the Preferential Procurement Scorecard. For example, procuring from a supplier with 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 your scorecard. The better the B-BBEE level of the supplier, the more recognition you get 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 who they spend with to ensure compliance and maintain their FFCs. By choosing Lightstone, Estate Agents will not only enhance their B-BBEE scores, ensuring they meet regulatory demands, but also contribute to meaningful change in the industry. Lightstone’s products and services are designed to help businesses remain competitive and compliant with evolving empowerment regulations. “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.
A new way forward
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.
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