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Property Practitioners forced to do BEE, or close down

On 13 March 2024, South Africa’s property regulator announced that “property practitioners” must do BEE, or close shop.


Sakeliga requests industry support to stop this unconstitutional threat.

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What Happened?

On 13 March 2024, the Property Practitioners Regulatory Authority (PPRA) announced that BEE is now a precondition for doing business. “Property practitioners” with less than 40 points on a BEE scorecard will be refused their Fidelity Fund certificate, making it illegal for them to continue operations.

Your freedom to run a property business is at serious risk.

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Your freedom to run a property business is at serious risk.

This video: 1 min. Full video: 5 min.

The Problem

The PPRA is committing a vast and unlawful overreach. 

  • It is making the political instrument of BEE a precondition for participation in the economy.
  • It is trying to force “property practitioners” to relinquish significant portions of their businesses under untenable terms.
  • This is a form of expropriation and one that sets a harmful and unacceptable precedent for state intervention in the economy.

Who is Affected?

  • Estate agents, developers, management agents, landlords, auctioneers, bond originators, and other “property practitioners” as defined in the Property Practitioners Act.
  • All their clients and customers across the economy, from all communities and racial groups.
  • Most at risk are small, medium, and family-owned businesses.
  • Currently, around 40 000 Fidelity Fund certificates are issued, mostly to estate agents, but the PPRA plans to require such certificates of all “property practitioner” categories as soon as possible.

This first enforcement drive is aimed mostly at companies. There appears to be some leniency for natural persons or sole proprietors below certain turnover thresholds, but we caution that such exceptions are arbitrary, unreliable for legal purposes, and undoubtedly temporary.

The Solution

To restore a flourishing industry, we must:

  • Publicly expose and oppose the PPRA's plans.
  • Bring a court case to free the industry from BEE prerequisites.
  • Prevent the state from making BEE an entry requirement across the economy.

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