B-BBEE compliance is evidenced either by a sworn affidavit, for smaller enterprises, or by a B-BBEE certificate issued by an accredited verification agency. Which applies depends on your annual turnover and, for some categories, your level of black ownership.
The most common and most expensive mistake is paying for a verification certificate when a sworn affidavit would have been sufficient. Establish your category before engaging anyone.
Business Requirements at a Glance
Evidence of your B-BBEE status is provided as follows.
- Exempted micro enterprises: a sworn affidavit confirming turnover and black ownership
- Qualifying small enterprises with high black ownership: a sworn affidavit is permitted
- Other qualifying small enterprises: verification against the applicable scorecard
- Generic enterprises: full scorecard verification by an accredited agency
- Both affidavits and certificates are valid for one year
- Start-ups are treated as exempted micro enterprises in their first year of operation
Registration and Legal Requirements
The scorecard measures ownership, management control, skills development, enterprise and supplier development, and socio-economic development. Ownership, skills development and enterprise and supplier development are priority elements.
Failing to meet the minimum threshold on a priority element results in your overall level being discounted, which is why businesses that score well overall can still end up at a lower level than expected.
Documents and Ownership Information Required
A sworn affidavit must be commissioned before a commissioner of oaths and must state turnover and black ownership percentage accurately. Overstating either is a criminal matter.
For verification, you will need records of shareholding, employment equity reporting, skills development spend and training records, procurement records showing supplier B-BBEE levels, and evidence of socio-economic development contributions.
Tax, Licence and Compliance Requirements
Verification agencies must be accredited by the South African National Accreditation System. Certificates from unaccredited providers are worthless, and this is a real problem in the market.
Fronting is a criminal offence under the B-BBEE Act, and the B-BBEE Commission investigates arrangements where black participation is not genuine.
Your customers rely on your certificate or affidavit for their own scorecards, so providing a false one exposes you to contractual and criminal consequences.
Process, Deadlines and Ongoing Obligations
Determine your category and whether a sector code applies, then obtain the appropriate evidence. Renew annually, since both affidavits and certificates lapse after a year.
If you are engaging a verification agency, confirm its accreditation with the South African National Accreditation System before paying.
This page is general information and not legal advice. Confirm current requirements with the B-BBEE Commission or a qualified adviser.
Frequently Asked Questions
Do I need a B-BBEE certificate?
Not necessarily. Exempted micro enterprises and qualifying small enterprises with high black ownership can use a sworn affidavit instead.
How long is a certificate valid?
Both affidavits and certificates are valid for one year and must be renewed.
How do I check a verification agency?
Confirm its accreditation with the South African National Accreditation System. Certificates from unaccredited providers are worthless.
What are priority elements?
Ownership, skills development, and enterprise and supplier development. Failing their minimum thresholds discounts your overall level.
Confirm current thresholds, codes and verification requirements with the B-BBEE Commission, and verify any agency accreditation with SANAS. Browse all business and compliance requirements.