BBBEE is an acronym for Broad-Based Black Economic Empowerment.
Black Economic Empowerment is a policy of the South African government which aims to facilitate broader participation in the economy by black people. A form of affirmative action, it is intended especially to redress the inequalities created in the past.
Below are some frequently asked questions
Answer. BBBEE stands for Broad-Based Black Economic Empowerment. It is a policy framework implemented in South Africa aimed at redressing the inequalities of apartheid by promoting economic transformation and empowering historically disadvantaged groups, particularly black people, in the country's economy.
The BBBEE framework encompasses various initiatives and measures designed to achieve its objectives, including:
Compliance with BBBEE requirements has become a significant consideration for businesses operating in South Africa, particularly in terms of government contracts, procurement processes, and corporate social responsibility initiatives. Companies are often required to undergo BBBEE verification to assess their compliance and receive a BBBEE certificate, which can influence their ability to participate in certain business opportunities and partnerships.
Answer. A sworn BBBEE affidavit can be used to represent your B-BBEE Level and certificate in certain instances
Answer. Businesses that i) have annual revenue below R10 million, or ii) have an annual revenue of between R10 million and R50 million and are 51% or more black-owned can use a BEE affidavit as their certificate. All other companies need to be verified by a SANAS-accredited agency.
Affidavit templates are available on the DTI's website for download:
https://www.thedtic.gov.za/financial-and-non-financial-support/b-bbee/b-bbee-codes-b-bbee-acts-strategies-policies/
Answer. If you have a current BBBEE Certificate issued by a SANAS-accredited company, you do not need a BBBEE affidavit.
However, a valid BBBEE affidavit or Certificate is usually required for doing business with most large companies in South Africa.
Answer. The BBBEE Affidavit is valid for one year (12 months) from the Commissioner of Oaths signature (affixed at the bottom of the Affidavit).
Answer. The affidavit templates are available on The DTIC's (The Department of Trade, Industry and Competition) website under Sectors and Service - BBBEE. The following link is provided for your convenience: The DTIC Affidavit Templates.
It is important to note that you select the correct affidavit template that is relevant to your business and industry.
Answer. Businesses with an annual turnover of less than R10 million can use a BBBEE affidavit, including:
Answer. Businesses with annual turnover of between R10 million and R50 million are defined as Qualifying Small Enterprises, and need to be verified according to a sector-specific BBBEE scorecard, except where black ownership exceeds 51%.
QSEs with 51% to 99% black ownership qualify for BBBEE Level 2, while 100% black-owned companies qualify for Level 1.
In these cases, you can submit a sworn QSE Affidavit to certify your ownership structure and qualify for higher procurement recognition.
Answer. Only directors or members of the entity requesting verification can complete the affidavit – no third parties.
Answer. Be completely transparent in your affidavit as providing incorrect shareholder information is a criminal offence.
Answer. Companies that fall under the Transport Sector Codes cannot use an Affidavit and have to either obtain a letter from their Auditors confirming Turnover is below R5 Million and total percentage Black Ownership and Black Woman Ownership or, obtain a BBBEE Certificate from a SANAS Accredited Agency.
NB: Utilizing an Affidavit as a Transport company will be considered as fraud and perjury for the person completing this affidavit under oath.
Furthermore, companies applying Modified Flow Through Principle cannot utilize an Affidavit and are required to obtain a SANAS Accredited Certificate.
Answer. An in-process letter is a document issued during the verification process of a company's BBBEE status. BBBEE is a policy initiative introduced by the South African government to address historical economic inequalities by promoting the economic participation of black people in various sectors of the economy.
The in-process letter is issued by an accredited verification agency while the verification process is ongoing. It serves as temporary confirmation that the company is undergoing the verification process and provides an indication of the company's level of compliance with BBBEE requirements. This letter may be required by certain stakeholders or potential partners during business transactions or procurement processes. Once the verification process is complete, a final BBBEE certificate or verification report is issued to confirm the company's BBBEE status.
