What is B-BBEE?
Broad-Based Black Economic Empowerment (B-BBEE) is South Africa's policy framework for redressing historical inequality and broadening economic participation. Your B-BBEE status affects your ability to win public-sector tenders, sell to large corporates, and unlock preferential procurement points on scorecards run by your customers.
The B-BBEE levels
Companies are rated from Level 1 (best) to Level 8, with anything below 40 points classified as non-compliant.
| Level | Score | Procurement recognition |
|---|---|---|
| Level 1 | ≥ 100 points | 135% procurement recognition |
| Level 2 | ≥ 95 points | 125% |
| Level 3 | ≥ 90 points | 110% |
| Level 4 | ≥ 80 points | 100% |
| Level 5 | ≥ 75 points | 80% |
| Level 6 | ≥ 70 points | 60% |
| Level 7 | ≥ 55 points | 50% |
| Level 8 | ≥ 40 points | 10% |
| Non-compliant | < 40 points | 0% |
EMEs and QSEs — the easy path for small business
- Exempted Micro Enterprise (EME): turnover under R10 million per year. An EME is automatically Level 4 B-BBEE compliant (Level 2 if 51%+ black-owned, Level 1 if 100% black-owned). You do not need a full verification audit — a sworn affidavit or CIPC B-BBEE certificate is enough.
- Qualifying Small Enterprise (QSE): turnover between R10 million and R50 million. A QSE that is 51%+ black-owned can also use a sworn affidavit. Otherwise a verification audit against the QSE scorecard is required.
- Generic (large): turnover above R50 million. Full B-BBEE verification against the generic scorecard is required annually.
The five scorecard elements
- Ownership — points for black ownership of the company.
- Management control — representation of black people on the board and in senior management.
- Skills development — investment in training black employees.
- Enterprise and supplier development — support to black-owned suppliers and small businesses.
- Socio-economic development — contributions to community initiatives benefiting black South Africans.
Why B-BBEE affects procurement
Under South Africa's Preferential Procurement Policy Framework Act (PPPFA), government tenders award preference points based on the supplier's B-BBEE level. Corporates use the same rating to score their own scorecard — buying from a Level 1 supplier earns 135% of the rand value spent, while buying from a non-compliant supplier earns nothing. That's why customers ask for your B-BBEE certificate before signing you up.
How to get certified
- Confirm your turnover band (EME, QSE, or Generic).
- If you are an EME or a 51%+ black-owned QSE, download the CIPC B-BBEE certificate for free from BizPortal or issue a sworn affidavit at a Commissioner of Oaths.
- Otherwise, engage an accredited B-BBEE Verification Agency (SANAS-accredited) to audit your business against the applicable scorecard.
- Renew annually — your certificate is valid for 12 months.
Common mistakes
- Assuming an old certificate is still valid — B-BBEE certificates expire after 12 months.
- Ignoring the ownership element — for small firms this is by far the biggest driver of the score.
- Using an affidavit template that does not match the DTI-prescribed format.
- Not tracking supplier B-BBEE certificates, which affects your own procurement score.
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