Broad-Based Black Economic Empowerment (BBBEE) is a Government policy to advance economic transformation and enhance the economic participation of black people. BBBEE policies are set out in the corresponding BBBEE Act, No. 53 of 2003, and they are reinforced by the Codes of Good Practice. South African businesses are encouraged to have a BBBEE certificate or affidavit, as the policy aims to ensure that the economy in South Africa is structured and transformed to allow for the meaningful participation of its citizens to create capacity in the broader economic landscape.
A BEE Certificate is the end product of the BBBEE verification process listing all critical information such as name, address, and registration details of the company assessed, as well as the category, sector code, element scores and points as per the company’s BEE scorecard, and the issue date of the certificate.
A BBBEE affidavit serves the same purpose as a BBBEE certificate. The only difference is that a BBBEE affidavit is used for companies with an annual turnover of less than R10 million, this usually includes start-ups and Exempt Micro Enterprises (EMEs) and Qualifying Small Enterprises (QSEs). A BBBEE certificate is used for companies with an annual turnover of over R10 million.
The BBBEE Affidavit requires business information, including the percentage of black ownership (if any) in your business to indicate on the form. BBBEE Certificates and Affidavits are valid for a year.
BEE verification is required to do business with government and corporates because they, in turn, have to be compliant with BEE in their supply chain. A valid BBBEE certificate from an accredited BEE Verification Agency helps you correctly implement BEE, get a good score, and grow the business’s bottom line. DTC can assist with this service!
BBBEE Classification and Scoring are as follows:
•Black, Indian, Coloured, or South African Chinese – Level 1 grading with 135% procurement recognition.
•White owned company – level 4 BBBEE grading with 100% procurement recognition.
•Majority Black owned (51% or more) company – level 2 BBBEE grading with 125% procurement recognition.
•Majority White owned (51% or more) company – level 3 BBBEE grading with 110% procurement recognition.
For assistance with your BBBEE certificate or affidavit – contact DTC today!