Level 4 B-BBEE (also written BEE level 4) means a score of 80 points or more but under 90 on the Generic Scorecard, which gives 100% procurement recognition. An Exempted Micro Enterprise (EME) is deemed Level 4 automatically, without verification.
The levels below come from the B-BBEE Commission’s Codes presentation, and the EME and QSE rules from the Amended Codes. Confirm the current gazetted text with the dtic before relying on it for a tender or contract.
Business Requirements at a Glance
- EME (annual total revenue of R10 million or less): deemed Level 4, with 100% procurement recognition and no verification needed.
- QSE (revenue between R10 million and R50 million): Level 1 if 100% black owned, Level 2 if at least 51% black owned (both need only a sworn affidavit); otherwise it is measured on the QSE scorecard.
- Large (Generic) enterprise (R50 million or more): needs 80 to under 90 points on the Generic Scorecard, verified, to be a Level 4 contributor.
- Priority elements carry sub-minimums, and failing one discounts the level by one.
- Only a verification professional accredited by SANAS can issue a B-BBEE verification certificate.
The level ladder on the Generic Scorecard runs from Level 1 (100 points or more, 135% recognition) through Level 4 (80 to under 90, 100%) and Level 5 (75 to under 80, 80%) down to Level 8, with below 40 points non-compliant.
Registration and Legal Requirements
B-BBEE is governed by the Broad-Based Black Economic Empowerment Act and the Codes of Good Practice issued under it; the size categories are set in Statement 000 of the Amended Codes (Government Gazette 42496). The B-BBEE Commission oversees compliance and the dtic administers the framework.
Your category depends on annual total revenue: R10 million or less is an EME, between R10 million and R50 million is a QSE, and R50 million or more is a large enterprise. Establish this first, because it decides whether you need a verification at all.
Fronting, meaning misrepresenting ownership, control or participation to obtain or improve a B-BBEE status, is an offence under the B-BBEE Act. Never buy a level.
Documents and Ownership Information Required
What you need depends on your category.
- EME or qualifying QSE: a sworn affidavit. The dtic template asks for the deponent’s name and ID, role (member, director or owner), enterprise name, registration number, address, black, black-female and designated-group ownership percentages, the latest financial year-end, and confirmation that revenue was within the EME or QSE band. It is valid for 12 months from the date the commissioner signs it.
- Other QSEs and large enterprises: a verification certificate from a SANAS-accredited verification professional, with supporting records for every scorecard claim (ownership, management control, skills development, enterprise and supplier development, socio-economic development).
- Shareholder or member register with identity details, and your CIPC registration documents.
The dtic publishes the EME general affidavit template. EMEs can also obtain a B-BBEE certificate through CIPC eServices; see the CIPC B-BBEE certification page.
Tax, Licence and Compliance Requirements
The Generic Scorecard measures five elements: Ownership (25 points), Management Control (19), Skills Development (20), Enterprise and Supplier Development (40) and Socio-Economic Development (5).
Three are priority elements with a 40% sub-minimum: Ownership, Skills Development, and Enterprise and Supplier Development. A QSE must meet Ownership plus either Skills Development or Enterprise and Supplier Development; a large enterprise must meet all of them. Missing a sub-minimum drops your status by one level, so a business can score 80 points and still be recognised below Level 4.
Process, Deadlines and Ongoing Obligations
- Work out your category from annual total revenue.
- If you are an EME, sign a sworn affidavit before a commissioner of oaths; it lasts 12 months, so renew it before it expires.
- If you are a QSE that is not at least 51% black owned, or a large enterprise, appoint a SANAS-accredited verification agency and keep records as you go.
- Check your priority element sub-minimums before targeting a level.
An EME may be verified by a SANAS-accredited professional only if it wants to maximise its points and move to a higher level, and it then uses the QSE scorecard. Fees and turnaround times for commissioners and verification agencies are not published officially, so ask for quotes.
Frequently Asked Questions
What is BEE level 4?
Level 4 is 80 to under 90 points on the Generic Scorecard, with 100% procurement recognition. EMEs are deemed Level 4.
Is every EME Level 4?
An EME is deemed a Level 4 contributor with 100% procurement recognition and needs no verification. Confirm your revenue band against the Codes.
How many points is level 4 BEE?
80 or more, but less than 90. Level 3 starts at 90 and Level 5 covers 75 to under 80.
Who can issue a B-BBEE certificate?
Only a verification professional accredited by SANAS. An EME or qualifying QSE uses a sworn affidavit instead.
Why did we not reach Level 4 on our points?
Probably a priority element sub-minimum. Failing one discounts your level by one, whatever the total.
How long does an affidavit last?
12 months from the date the commissioner signs it.
Confirm current thresholds and scorecard rules with the dtic, the B-BBEE Commission or a SANAS-accredited agency. See business and compliance requirements and company registration requirements.