1. 1 2008 YOUTH IN CONSTRUCTION AND PROPERTY SUMMIT “Your Aspirations are Our Inspiration” 27 JUNE 2008 Real Estates/Property Management Programmes KWAZULU-NATAL DEPARTMENT OF PUBLIC WORKS

2. 2 PRESENTATION OUTLINE  BACKGROUND  CORE FUNCTIONS OF DEPARTMENT OF PUBLIC WORKS  NEW STRATEGIES AND PROGRAMMES

3. 3 BACKGROUND  A feature of our past policies was the exclusion of Blacks, particularly women and the youth, from many sectors of our economy.  Mainly among these were the construction and property industries which, for generations now, have been regarded primarily as a domain for white male citizens of this country.

4. 4 BACKGROUND (CONT.)  Efforts have been made to remedy this situation in the construction industry and this Department now considers it important to see to it that this is also done in the property sector.  It must be clearly understood that participation in the property sector is not limited to property ownership. It involves several areas of economic activity including property development and property management and real estate agency.

5. 5 BACKGROUND (CONT.)  Therefore the purpose of today’s event is to encourage historically disadvantaged youth to enter the property sector of our economy and participate in a visible and meaningful manner.  Perhaps, at this point, a brief overview of the services provided by our Provincial Department of Public Works will help put matters in to perspective.

6. 6 CORE FUNCTIONS OF THE DEPARTMENT OF PUBLIC WORKS  Acquisition of land and buildings through purchase, hire, donation, exchange and expropriation.  Construction of state buildings, including new construction and major renovation.  Maintenance of state buildings, including repairs and improvements.

7. 7 CORE FUNCTIONS (CONT.)  Maintenance and securing of state land.  Alienation of surplus and /or redundant buildings and land either through sale, letting, exchange or donation.  Within the Department there is a component called Real Estates which is responsible for, among others, the following Real Estates functions:

8. 8 CORE FUNCTIONS  Acquisition of land and buildings for the provincial government by purchase, hire, donation, exchange and expropriation;  Reallocation of provincial government land and buildings between the other (user) provincial government departments;

9. 9 CORE FUNCTIONS (CONT.)  Disposal of land and buildings (immovable assets) by letting, sale, exchange [and] or donation;  The management of immovable state assets.

10. 10 REAL ESTATES The Real Estates component in turn consists of the following 4 sections: 1) Hiring and Letting  This section is involved in the hiring of buildings (mostly office accommodation) and land from both the public and the private sector for use by provincial government departments.

11. 11 REAL ESTATES ( Hiring and Letting Cont. )  It is also involved in the letting of unused state immovable property to both the private and public sectors. 2) Acquisition and Disposal  This section is involved in the acquisition of land and buildings for the provincial government by means of purchase, exchange or expropriation

12. 12 REAL ESTATES ( Acquisition and Disposal)  It is also involved in the disposal of redundant provincial government properties by sale, exchange or donation. 3) Asset Management  This section is involved in the effective management of the provincial government’s fixed assets, both leased and freehold;

13. 13 Real Estates (Asset Management Cont.)  It is also involved in the elimination and prevention of the illegal occupation of provincial government’s immovable property;  It is a legislative requirement that all the provincial government’s land and buildings be recorded in a comprehensive and accurate fixed asset register and it is this section’s responsibility to establish and maintain such a register;

14. 14 Real Estates ( Asset Management cont.)  The section is also responsible for the payment of municipal rates on all the provincial government’s immovable property, a function which has been taken over from the national government this year

15. 15 REAL ESTATES (Cont.) 4) Policy Development This section deals with the development, implementation and review of the provincial government’s real estate policies, strategies and the delegations.

16. 16 NEW STRATEGIES AND PROGRAMMES Earlier in this presentation reference was made to the skewed participation that currently exists in the property sector and the main cause thereof. That brings us to what programs we have in the department of Public Works that can be leveraged to bring about the change that is necessary to ensure equity in this regard.

17. 17 NEW STRATEGIES AND PROGRAMMES (Cont.) The National Property Charter is binding on the property sector as a whole and is an embodiment of the sector’s commitment to achieving that change.

18. 18 PROPERTY INCUBATOR PROGRAMME a) Property Incubator Programme  This is a programme emanating from the Property Charter that the Department of Public Works will be undertaking some time during the course of this financial year.  It is aimed at encouraging mainly women and the youth to participate in the property sector.

19. 19 Property Incubator Programme (Cont.) The programme has the following key objectives: 1. To facilitate the process of skills transfer from the emerged to the emerging markets in the property sector; 2. To achieve a substantial change in the racial and gender composition of the participants in the property sector;

20. 20 Property Incubator Programme (Cont.) 3. To encourage good corporate citizenship amongst enterprises in the property sector; 4. To increase the number of BBBEE firms providing services to the industry; 5. To unlock obstacles to the participation by black people in the property sector; 6. To provide a platform for the development of a holistic approach to the property industry.

21. 21 Property Incubator Programme (Cont.)  The programme aims to recruit women and the youth, both graduates and matriculants, to get them trained and mentored so that they are able to find meaningful career opportunities in the property industry.

22. 22 IZANDLA ZIYAGEZANA b) Izandla Ziyagezana Programme  This is a programme developed by the Department to assist the poorest of the poor.  It involves recruiting unemployed and impoverished people from communities living close to vacant provincial government land and appointing them as contractors to clear that land on an ongoing basis.

23. 23 IZANDLA ZIYAGEZANA (cont.)  The necessary tools, training and supervision will be provided by the Department.  The local community structures will be involved in the identification of potential contractors.

24. 24 IZANDLA ZIYAGEZANA (CONT.)  Contractors will leave the program as they develop sufficient confidence and skills to acquire other contracts and so raise their earnings to the point where they no longer qualify as the poorest of the poor.  New contractors will be appointed to replace those that leave the program.

25. 25 THANK YOU