Background History
Background History to initiating the SAIBPP initiative
| • | An under-representation of black people/professionals in the private sector in 1996 |
| • | A small percentage of senior executives in positions of power in the industry |
| • | Training and education for black professionals and other participants was the focus |
Why Profile Change
| • | The change in government has created an environment for an increase in the number of black participants |
| • | Priority includes other transformation targets beyond just skills |
| • | The country has more black property owners |
| • | The membership component now includes organisational leaders, entrepreneurs, students, etc; contrary to the previous membership base which was fully constituted by employees |
| • | Barriers to entry are caused by a combination of access to finance, opportunities and skills to optimise on opportunities |
| • | Black property practitioners are now partnering with white individuals in undertaking property investment opportunities |
Changes after 1996
| • | The transformation of the economy has resulted in a change in the membership profile |
| • | SAIBPP experiencing an increase in Corporate Members |
| • | A number of Black Professional organisations have increased |
| • | SAIBPP also has black residential and commercial developers in its membership base |
Challenges
| • | Financial Institutions have historically had limited appetite for BEE transactions. Although some support exist for a few companies, a bulk of members still face the challenge to accessing finance |
| • | Increased demand in property assets have decreased property yields and capital growth |
| • | There's a lack of clarity between various industry organisations in terms of delivering on transformation |
| • | There are broad expectations from the SAIBPP members – membership base is beyond employees of established business |
| • | Established investors are overlooking experienced property practitioners; and partnering with BEE magnates in other sectors |
| • | Property is perceived to be an investment asset with savvy |
| • | A need to set up of the SAIBPP Chief Executive Officer's office or General Manager who will deliver on needs to assist Board members to focus on strategic initiatives and Corporate Governance |
