B-BBEE Certificate South Africa: How to Get One
A Broad-Based Black Economic Empowerment (B-BBEE) certificate or scorecard is required for doing business with government and many large corporations in South Africa. The level awarded (1 to 8, with Level 1 being the best) is based on a company performance across several transformation criteria. Small businesses known as EMEs can self-certify using a sworn affidavit.
What Is B-BBEE and Why Does It Matter?
B-BBEE stands for Broad-Based Black Economic Empowerment. It is a South African government policy aimed at increasing participation of black South Africans in the economy. It is governed by the B-BBEE Act 53 of 2003 and its associated Codes of Good Practice.
Your B-BBEE level affects your ability to win government tenders, access preferential procurement from large corporates, and qualify for certain government funding programmes. A higher level (lower number) gives you a competitive advantage.
B-BBEE Scorecard Elements
| Element | Weighting |
|---|---|
| Ownership | 25 points |
| Management Control | 19 points |
| Skills Development | 20 points |
| Enterprise and Supplier Development | 40 points |
| Socio-Economic Development | 5 points |
| Total | 109 points (bonus points possible) |
EME affidavits are free. You only need to have the affidavit sworn before a commissioner of oaths such as a police officer or certain bank officials.
EME — Exempted Micro Enterprises
A company with an annual turnover of less than R10 million qualifies as an Exempted Micro Enterprise (EME). EMEs are automatically granted a B-BBEE Level 4 status, or Level 1 if at least 51% black-owned, or Level 2 if at least 30% black women-owned.
EMEs do not need a formal verification from a SANAS-accredited agency. Instead, they can use a sworn affidavit signed by a commissioner of oaths as proof of their B-BBEE status. The affidavit template is available from the DTIC website.
QSE — Qualifying Small Enterprises
A Qualifying Small Enterprise (QSE) has annual turnover between R10 million and R50 million. QSEs must be verified by a SANAS-accredited verification agency and can choose 4 of the 5 scorecard elements to be measured on.
QSEs that are 51% or more black-owned may also qualify for automatic Level 1 status without full verification in some sectors.
Generic Enterprises — Full Verification
Companies with annual turnover above R50 million are Generic Enterprises and must undergo a full B-BBEE verification by a SANAS-accredited verification agency. All five elements of the scorecard are assessed.
Verification agencies charge fees ranging from R5,000 to R50,000 or more depending on company size and complexity. The process typically takes 4 to 8 weeks.
B-BBEE certificates from non-SANAS-accredited agencies are not legally valid for government procurement. Only use agencies listed on the SANAS website.
How to Find a SANAS-Accredited Verification Agency
The South African National Accreditation System (SANAS) maintains a list of accredited B-BBEE verification agencies on its website at www.sanas.co.za.
Always verify that your chosen agency is SANAS-accredited. Using a non-accredited agency may result in your certificate being rejected by government departments or major corporations.