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President Cyril Ramaphosa’s endorsement of R84bn Mooikloof MegaCity Development is a slap in the face, the South African Institute of Black Property Professionals (SAIBPP) said Monday night.
Ramaphosa officiated at the launch of the megadevelopment in Tshwane on Sunday. Speaking at the launch, Ramaphosa said the project was one of 62 Strategic Integrated Projects (SIPs) that were released in late July.
It applauded the developers, Balwin Properties, the Gauteng government and Tshwane for their role in bringing the project to life “within these limited time frames.”
“The first phase of the project is residential developments, and some 50,000 sectional title units are planned. Once completed, Mooikloof MegaCity may end up becoming the largest sectional real estate development in the world, with land also earmarked for schools, shops and offices.
“This housing development addresses what can be called the ‘housing shortage’ – people who earn too much to qualify for fully subsidized housing but who do not earn enough to pay for debt-financed housing in the areas of their choice. But by far the most important aspect of this catalytic project is its contribution to the development of inclusive housing, ”said Ramaphosa.
However, black property professionals criticized Ramaphosa’s endorsement of the project, citing the lack of transformation and disregard for BBBEE policies in the property / construction sector.
“The property and construction sectors remain paralyzed by a chronic lack of transformation. Black property within the R6 trillion real estate sector stands at less than 7%, and black developers continue to be constrained by lack of access to finance and lack of access to land, while companies showing contempt blatant by BBBEE and transformation benefit from grants and assistance made possible by public funds.
“The public endorsement of this development and its inclusion as part of the SID list of specific projects is a slap in the face to all patriotic South Africans who are committed to the structural transformation of our economy and shows, once again, the lack of will government to address the issue of transformation in real estate and the built environment, ”said group chairman Tholo Makhaola.
The SIBPP said that the effects of Covid-19 on the economy had been devastating, and admitted that the project would create “short-term” job opportunities. However, he said such projects “should not be sacrificed for long-term transformation.”
Ramaphosa said the project was expected to create 41,000 much-needed jobs.
Despite the concerns, SIBPP said it supported similar projects as long as they were inclusive. “We continue to support this much-needed investment drive and reiterate that as we rebuild the economy, no one, especially the many black professionals in the property and built environment sectors, should be left behind,” said Makhaola.
The group asked the Ramaphosa office to implement a rule that everyone companies participating in the SID program and that have submitted projects as part of SID must be able to produce at least one B-BBEE level 2 certificate. He said if this was not the case then All companies participating in the program must demonstrate how they intend to partner, create joint ventures or ensure significant financial and skills transfer during and after the project.
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