South African Property Owners Association’s (SAPOA) outgoing president Malose Kekana has highlighted initiatives that the association has carried out over the past year in support of revitalising economic growth, promoting investment in cities and municipal-run areas, and the continuation of driving skills development in the commercial real estate sector.
During his opening address at SAPOA’s 2023 Annual Convention and Property Networking at Sun City, Kekana, who is also the CEO of Pareto Limited, reiterated that the association is part of the economic recovery plan being spearheaded by Business for South Africa which has established work streams which focus on five key priority areas of energy, rail, and port infrastructure, water, investment in infrastructure and crime and corruption.
“SAPOA nominated its members to serve on these work streams,” he said, stressing the critical importance of implementing reforms and interventions to transform and grow the economy.
Kekana says SAPOA has been engaging with various mayors to discuss important issues affecting the property industry and municipalities which have since resulted in an agreement to commit to a partnership comprising the public and private sectors to collaborate on areas such as precinct development, municipal service infrastructure, land use management, and building plan procedures, land use management in rural areas, annual municipal budgets, rate and tariff increases, and new and pending city planning projects.
Kekana says SAPOA has been engaging with various mayors to discuss important issues affecting the property industry and municipalities which have since resulted in an agreement to commit to a partnership comprising the public and private sectors to collaborate on areas such as precinct development, municipal service infrastructure, land use management, and building plan procedures, land use management in rural areas, annual municipal budgets, rate and tariff increases, and new and pending city planning projects.
“We also agreed to support each other through dialogue and activities to support the municipalities. We will also jointly identify research opportunities to collect information that can be used to improve business activities within the metros.”
Furthermore, SAPOA had submitted comments on the draft integrated development plans (IDPs) released by several municipalities. The IDP serves as the longer-term strategic plan for municipalities and indicates the strategic goals and initiatives they will address in the coming years.
“SAPOA submitted comments on the draft IDPs of Nelson Mandela Bay, City of Cape Town, City of Johannesburg, eThekwini, City of Mbombela and Buffalo City,” he says.
SAPOA is also researching precinct management nationally to gain a holistic understanding of the industry’s contribution to the effective delivery of services at the municipal level.
“The report will focus on gathering information on the contributions made by central improvement districts to public safety measures, cleansing services, maintenance of infrastructure, environment upgrades and social services.”
Kekana, however, says SAPOA has been concerned about the socio-impact of rates and taxes across various municipalities. A study commissioned by SAPOA revealed that “the continuously excessive increases of rates and taxes by the major metropolitan municipalities from 2010 until 2021 is unsustainable for the industry which is having negative impact on growth and employment.”
SAPOA has written to the cities of Cape Town, Johannesburg, Tshwane, eThekwini, and Nelson Mandela Bay to start the consultation process required by the applicable legislation.
On energy and sustainability issues, sector CEOs have pledged to, among other outcomes, maximising the reduction of emissions for new developments and major refurbishments, driving energy optimisation across existing assets and new developments, maximising the capacity of on-site renewable energy, where and when possible, to buy-in/wheel energy from 100% renewable sources.
He stresses the importance of skills development and transformation in the property sector, where progress is slow. While some companies have skills development programmes, there has been limited positive impact in the sector. There is, however, an acknowledgement that young people should be encouraged to enter the real estate profession. SAPOA has since identified a need for a structured approach to address skills development requirements.
SAPOA’s contribution to skills development is the launch of the National Business Initiative’s Youth Employment Initiative early this year, which placed 85 unemployed learners across Gauteng and Cape Town. They are undergoing a twelve-month certified skills programme endorsed by the Quality Council for Trades and Occupations, which offers a viable option for acquiring recognition of skills.
“The educational efforts of SAPOA aim to increase knowledge and skills among industry employees, ensure that the content of programmes, webinars, workshops and other educational interventions align to industry needs; and raise the employability and competence of industry practitioners and professionals,” he concluded.
