BBBEE

What is B-BBEE?
Broad-Based Black Economic Empowerment (BBBEE) was initiated by the South African government to promote economic transformation by empowering previously disadvantaged people through various strategies that ensure meaningful participation in the workplace.

 

Definition of previously disadvantaged?
The term “Black” in Broad-Based Black Economic Empowerment refers to all Africans, Coloureds, Indians and Chinese people.

 

How do I determine my classification of my business?

Businesses are classified on their turnover threshold:

  • Start-up EME –   a recently formed or incorporated enterprise that has existed for less than one year.

    These enterprises are measured as EMEs for the first year following their formation or incorporation.

  • EME (Exempt Micro Enterprises) – Turnover below R10m. These enterprises are exempt from any form of B-BBEE and are automatically level 4 contributors – i.e. you can claim R1 for every R1 spent with them.
  • QSE (Qualifying Small Enterprises)– enterprises whose annual turnover falls between R10 million and R50 million. (Measured on 4 out of the 7 scorecard elements)
  • Generic – enterprises whose turnover greater than R50m. (Measured on all 5 B-BBEE under the new B-BBEE codes)

 

What elements are B-BBEE rated on?

BBBEE is made up of 5 elements which are taken into account when processing a scorecard:

  • Ownership – who owns the business
  • Management Control – who controls the business
  • Skills Development – training of staff to enhance skills and competencies
  • Socio-Economic Development – contributions to promote the development of underprivileged communities (includes bursaries)
  • Enterprise & Supplier Development – the extent to which entities buy goods and services from Empowering Suppliers with strong B-BBEE recognition levels.

What are the BBBEE procurement recognition levels? (Refer PDF for differences between old and new codes)

 

Contribution Level BBBEE score range Recognition level
Level One Contributor ≥ 100 points R1.35/R1 spent
Level Two Contributor ≥ 95 points but < 100 points R1.25/R1 spent
Level Three Contributor ≥ 90 points but < 95 points R1.10/R1 spent
Level Four Contributor ≥ 80 points but < 90 points R1/R1 spent
Level Five Contributor ≥ 75 points but < 80 points R0.80/R1 spent
Level Six Contributor ≥ 70 points but < 75 points R0.60/R1 spent
Level Seven Contributor ≥ 55 points but < 70 points R0.50/R1 spent
Level Eight Contributor ≥ 40 points but < 55 points R0.10/R1 spent
Non-Compliant Contributor < 40 points R0/R1 spent

 

What do I need to submit to get a BBBEE certificate?

  • For EME: an EME is only required to sign an AFFIDAVIT – no certification is required. Contact us to find out what you will need to sign.
  • For QSE and Generic: please email for a list of requirements :bee@dkalmin.co.za

 

How often should a B-BBEE audit be undertaken?

The Codes of Good Practice require an audit to be performed once a year.