Level 4 means 100% procurement recognition for your customers. There are two ways to get there. An EME (annual total revenue of R10 million or less) with less than 51% black ownership is deemed Level 4 by sworn affidavit or a CIPC certificate. A larger business reaches Level 4 on the generic scorecard, which under the 2013 gazetted Codes means at least 80 but fewer than 90 points.
Confirm the scorecard points with a SANAS-accredited agency, because the 2019 amendment to Statement 000 was not checked against the full level table. See our guide to business and compliance requirements.
Business Requirements at a Glance
- Level 4: 100% procurement recognition
- EME route: annual total revenue of R10 million or less, deemed Level 4 by affidavit or free CIPC certificate
- Scorecard route: at least 80 but fewer than 90 points on the generic scorecard (2013 table), verified by a SANAS-accredited agency
- Sub-minimum compliance on priority elements, or the level is discounted by one level
- A sector code overrides the generic scorecard where one applies
For comparison under the same 2013 table: Level 1 is 100 points or more (135%), Level 2 is 95 to under 100 (125%), Level 3 is 90 to under 95 (110%), Level 5 is 75 to under 80 (80%), and Level 6 is 70 to under 75 (60%).
Registration and Legal Requirements
B-BBEE is governed by the Broad-Based Black Economic Empowerment Act 53 of 2003, as amended, and the Codes of Good Practice. The B-BBEE Commission oversees compliance and the Department of Trade, Industry and Competition (dtic) issues the Codes.
EME route. An EME is deemed Level 4, rising to Level 2 at 51% or more black ownership and Level 1 at 100%. It only has to obtain a sworn affidavit or CIPC certificate annually (Statement 000, 2019).
Scorecard route. The generic scorecard measures Ownership, Management Control, Skills Development, Enterprise and Supplier Development, and Socio-Economic Development. The 2013 gazette weights these at 25, 15, 20, 40 and 5 points respectively. Confirm these weightings are unchanged under the 2019 amendment.
Sector codes. An entity in a sector with a gazetted sector code may only be measured under that code.
Fronting and misrepresentation. Knowingly misrepresenting your status is an offence under section 13O of the Act. The Commission can fine an entity up to 10% of annual turnover, and individuals face up to 10 years’ imprisonment (Practice Guide 01 of 2022).
Documents and Ownership Information Required
- EME: the dtic sworn affidavit (EME template) or a CIPC certificate
- Scorecard route: a verification certificate from a SANAS-accredited agency
- Annual financial statements or proof of revenue
- Shareholder or member details, with the percentage of black ownership
- Evidence for each scorecard element you claim points on
A B-BBEE verification certificate can only be issued by an agency accredited by SANAS. Before you rely on one, check the agency’s accreditation status, period and scope on the SANAS website, as the Commission advises. Agency fees are not published by an official source, so compare quotes.
Tax, Licence and Compliance Requirements
Priority elements. Ownership, Skills Development, and Enterprise and Supplier Development each have a sub-minimum of 40% of their points. Missing one discounts your level by one level, so a business scoring in the Level 4 range can drop to Level 5. A QSE must meet Ownership plus either Skills Development or Enterprise and Supplier Development.
Public tenders. Under the Preferential Procurement Regulations, 2022, the 80/20 system applies up to and including R50 million and 90/10 above R50 million. The 20 or 10 points go to the “specific goal” stated in the tender, not automatically to your B-BBEE level. Read the tender documents to see what is scored.
Tenders usually also check tax compliance and CIPC standing, so keep those current.
Process, Deadlines and Ongoing Obligations
- Work out your annual total revenue and category
- EME: obtain the affidavit or the free CIPC certificate each year
- Larger business: engage a SANAS-accredited agency to verify your scorecard
- Check whether a sector code applies
- Renew before the document expires
A sworn affidavit is valid for 12 months from the date it was commissioned, and a CIPC certificate is valid for 12 months. A scorecard measures a financial year’s performance, so improving a level takes planning ahead of the year in question. Start-ups are ordinarily treated as EMEs but must submit a scorecard when tendering above R10 million. See the Commission FAQ for more.
Frequently Asked Questions
What are the B-BBEE Level 4 requirements?
For an EME: annual total revenue of R10 million or less and a sworn affidavit or CIPC certificate, with less than 51% black ownership. For a larger business: 80 but fewer than 90 points on the generic scorecard under the 2013 table, verified by a SANAS-accredited agency.
What does Level 4 mean for my customers?
Customers can count 100% of their spend with you towards their own procurement score.
Can a small business be Level 4 without a verification agency?
Yes. An EME is deemed Level 4 and needs only an affidavit or CIPC certificate.
Do public tenders award points for my B-BBEE level?
Not automatically. Under the 2022 Preferential Procurement Regulations, the preference points are awarded for the specific goal set in the tender.
Is Level 4 enough to win tenders?
The tender documents decide. Many also check tax compliance and CIPC standing, so confirm the criteria with the organ of state.
How do I check a verification agency?
Check its accreditation status, period and scope on the SANAS website.
Level tables, scorecard weightings and thresholds are set by the dtic and the B-BBEE Commission and can change, so confirm with them or a SANAS-accredited agency. See business and compliance requirements and, for the next step, company registration requirements.