Zikalala urges Black firms to claim share of South Africa's R9.4 trillion property sector

Public Works and Infrastructure Minister Sihle Zikalala has urged Black enterprises to claim a larger share of South Africa's property economy, saying they cannot afford to remain on the sidelines while a small number of established companies continue to dominate large parts of the sector.

Speaking during a round-table engagement in Zimbali, north of Durban, with the Black Property Sector Association (BPSA), Zikalala said the focus now needed to shift from discussions about transformation to creating concrete opportunities for Black businesses across the property value chain.

He said the property sector is worth about R9.4 trillion. Of this, the commercial property sector alone is estimated at about R1.92 trillion and includes retail, office, industrial and leisure properties.

Zikalala identified several areas where Black businesses could expand their participation, including facilities management, property and asset management, preventative and reactive maintenance, property optimisation, and energy and infrastructure. He said the assets should not be viewed simply as buildings but as platforms capable of creating businesses, jobs and wider economic opportunities.

“These are not simply buildings. They are platforms for economic activity,” he said. “Through transformation, we can ensure that ownership, enterprises and employment opportunities arising from these assets reach more South Africans.” He challenged the BPSA to identify specific opportunities within the property value chain, adding that greater participation would require more than policy commitments, with government and the private sector needing to create conditions in which Black-owned and Black-led enterprises could compete for work and build sustainable businesses.