B-BBEE for Small Businesses
B-BBEE is a policy implemented by the South African Government. A certification which shows that you care about South Africa and that your business is committed to making a positive difference in society while allowing you to participate as a supplier in whichever lucrative chain. Not forgetting, focused on creating a greater Black Economic participation.
A business under the Generic DTI Codes with a turnover of less than R10 million qualifies as an Exempt-Micro-Enterprise (EME) and does not require a B-BBEE certificate to be issued by a SANAS rating agency. EME business owners must complete an EME Affidavit (refer to CIPC link below for the template), signed by a Commissioner of Oaths instead of a B-BBEE certificate with no cost implications for the EME.
Once the Affidavit has been stamped by a Commissioner of Oaths, the Affidavit serves as a confirmation of the EME’s B-BBEE status as a Level 4 B-BBEE contributor. Black-owned (51% >) EME and Qualifying Small Enterprise (QSE = Turnover between R10 million and R50 million) businesses qualify for enhanced automatic recognition levels depending on the % Black Ownership, through the same Affidavit process with no further verification requirement.
Important to note that there are specific Sector Codes for businesses that generate more than 50% of their revenue in a specific sector with a gazetted Sector Code, where the EME and QSE definitions and affidavit templates and requirements are slightly different to the Generic DTI Codes mentioned here (Current Sectors Codes gazetted: Agri; Construction; Defence; Forest, Financial, ICT, Marketing-MAC, Property, Tourism).
