Broad-Based Black Economic Empowerment Act, 2003 (Act No. 53 of 2003)

Codes of Good Practice on Broad-Based Black Economic Empowerment

Amended Property Sector Code

Statement 000: General Principles and General Scorecard as applied to the Amended Property Sector Code

12. Economic Development
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12.1There is a lack of investment and property development in under-resourced areas, perpetuating service inequalities and exacerbating the limited tradability of properties in these areas.

 

12.2The parties to the charter acknowledge their role in directing investment into under-resourced areas. Consequently, property enterprises will participate in property development and transformational infrastructure projects that support development and empowerment of micro and small enterprises and contribute towards equitable access to economic resources in under-resourced areas.

 

12.3An enterprise that engages in property development commits to spend 10% of its total new property development in under-resourced areas. The amended Property Sector Code must use the Transformational Infrastructure Index to categorise under resourced areas as referred to in the Financial Sector Code (FSC) over a five-year period.

 

12.4A measured entity can contribute 5% of cumulative total annual investment activities to Economic Development projects that stimulates development i.e. infrastructure bulk services as defined on average over a five-year period.

 

12.4Where an enterprise chooses to apply both sub-elements, the entity can spend 5% of new property development in under resourced areas for 3 weighting points and 2.5% for economic development projects that stimulates development i.e infrastructure bulk services, for 2 weighting points.

 

12.5There has been limited support by the sector of entrepreneurial development and both public and private sector disposal strategies have in general inadequately incorporated B-BBEE objectives.

 

12.6As part of the process, the parties will design appropriate risk mitigating measures and risk sharing arrangements with Government and its development finance institutions and the Financial Sector Charter Council.

 

12.7National, provincial and local government will identify property for development purposes in line with integrated development plans and combine zoning rights with development requirements.

 

12.8For defining under resourced area, we will use the infrastructure municipality index developed by Financial Draft sector code (FSC) as amended. The Infrastructure municipality index to be published in the Property Sector Charter Council website. www.propertycharter.co.za.

 

12.9If the Measured Entity only undertakes Economic Development under one of the above indicators, then the points of the two indicators are aggregated and the Compliance Target for that indicator is doubled.

 

For example:

•If an organisation only contributes to 6.1 then the points are 5 and the target is 10%.
•If an organisation only contributes to 6.2 then the points are 5 and the target is 5%.

 

12.10A recognised amount counted towards the target of one of the above indicators cannot be recognised under the other i.e. no double counting.

 

12.11Economic Development Investments and contributions are recognised based on the percentages contained in the latest Infrastructure Municipality Index contained in the Financial Services Sector Code.

 

CODE 600: ECONOMIC SKILLS DEVELOPMENT GENERIC ENTITIES - 5 POINTS

 

MEASUREMENT CATEGORY & CRITERIA

WEIGHTING POINTS

COMPLIANCE TARGET
6.1Economic Development Investment in under-resourced areas as a % of total annual investment

3

10%
6.2Contribution towards any Economic Development Programme as a % of total annual investment activities

2

5%

 

CODE 706: ECONOMIC DEVELOPMENT SCORECARD FOR QSE - 4 POINTS

 

THE ECONOMIC DEVELOPMENT SCORECARD FOR QSE - 4 POINTS

 

MEASUREMENT CATEGORY & CRITERIA

WEIGHTING POINTS

COMPLIANCE TARGET

Economic Development Investment in under-resourced areas as a % of total annual investment

4

10%

 

12.12For QSE’s, the Economic Development element will be subject the measured engaging in property development.

 

12.1Where the QSE measured entity, has not done any form of property development that year, it will calculate its overall performance based on the total maximum points minus the weighting allocated to the Economic Development element.