What B-BBEE level do I need to do business with government or large companies?

Most government tenders and large corporate contracts require a B-BBEE level 1, 2, or 3 (135% to 110% procurement recognition). Level 4 (100% recognition) is often the minimum acceptable. A level 4 or higher is typically required to win government and corporate contracts.

What is the difference between an EME and a QSE for B-BBEE?

An EME (Exempted Micro Enterprise) has annual turnover of R10 million or less and uses a simplified scorecard with 4 elements. EMEs automatically qualify as level 4 if 51%+ black-owned or level 2 if 100% black-owned. A QSE (Qualifying Small Enterprise) has turnover between R10 million and R50 million and uses a full scorecard with 5 elements.

How do I get a B-BBEE certificate?

EMEs can get a free B-BBEE certificate through the CIPC BizPortal or from a SANAS-accredited verification agency. QSEs and generic entities must undergo a full verification by a SANAS-accredited B-BBEE verification agency. You will need to provide company registration documents, financial statements, and ownership details.

Is a B-BBEE certificate mandatory for all businesses in South Africa?

There is no law requiring every business to have a B-BBEE certificate. However, to tender for government contracts, do business with most large corporations, apply for certain licences, or claim enhanced tax deductions, a valid B-BBEE certificate is required. Practically, most formal businesses need one to access the mainstream economy.

B-BBEE Certificates for Small Businesses in South Africa: Complete Guide

Broad-Based Black Economic Empowerment (B-BBEE) affects how businesses in South Africa win contracts, access funding, and compete in the mainstream economy. If you are a small business owner, understanding your B-BBEE status and getting the right certificate is essential. This guide covers everything you need to know.

What Is B-BBEE?

B-BBEE is a government policy designed to address economic inequality in South Africa by promoting meaningful participation of black people in the economy. It is governed by the Broad-Based Black Economic Empowerment Act (Act 53 of 2003, as amended).

B-BBEE uses a scorecard system to measure a company's empowerment credentials across several elements. Your B-BBEE level determines how you are rated by customers, government tender boards, and procurement departments.

B-BBEE Levels Explained

B-BBEE Level	Score (Points)	Procurement Recognition %
Level 1	100+ points	135%
Level 2	95–99 points	125%
Level 3	90–94 points	110%
Level 4	80–89 points	100%
Level 5	75–79 points	80%
Level 6	70–74 points	60%
Level 7	55–69 points	50%
Level 8	40–54 points	10%
Non-compliant	Below 40 points	0%

Procurement recognition is what matters most. If you are a Level 1 supplier, your client can count 135% of your invoice value toward their B-BBEE procurement spend. This makes Level 1 and 2 suppliers highly sought after.

EME vs QSE vs Generic: Which Category Fits You?

Your B-BBEE status and the scorecard you use depend on your annual turnover:

Category	Annual Turnover	Scorecard Elements
EME (Exempted Micro Enterprise)	R10 million or less	4 elements (simplified)
QSE (Qualifying Small Enterprise)	R10 million – R50 million	5 elements
Generic	Above R50 million	5 elements (full)

EME B-BBEE Status: Automatic Levels

EMEs (turnover of R10 million or less) enjoy simplified B-BBEE recognition. You automatically qualify for:

Level 4 (100% recognition) — If your business is at least 51% black-owned
Level 2 (125% recognition) — If your business is 100% black-owned
Level 1 (135% recognition) — If your business is 100% black-owned and qualifies as a start-up (less than 1 year old) or has a turnover below R1 million

EMEs are not required to be scored on all B-BBEE elements. You simply need to verify your ownership status and turnover to receive your certificate.

QSE B-BBEE Scorecard

If your turnover is between R10 million and R50 million, you are a QSE and must be scored on 5 elements:

Ownership — 25 points (black shareholding and voting rights)
Management Control — 15 points (black representation at board and senior management level)
Skills Development — 20 points (training spend on black employees)
Enterprise and Supplier Development — 30 points (procurement from B-BBEE compliant suppliers and supporting small businesses)
Socio-Economic Development — 10 points (contributions to community initiatives)

QSEs can choose any 5 of the 5 elements to be scored on (i.e. all 5 are mandatory for a full scorecard).

How to Get a B-BBEE Certificate

For EMEs (Free Certificate Options)

CIPC BizPortal — EMEs can register for a free B-BBEE certificate on the CIPC BizPortal website. This is the easiest and most cost-effective option. You will need your company registration number and ownership details.
Accredited Verification Agencies — Some SANAS-accredited agencies offer free EME certificates as a lead generation service. Others charge a small fee (R500–R1,500).
Accounting Firms — Many accounting firms, including Tanosa Group, can assist with B-BBEE certificate applications for EMEs.

For QSEs and Generic Entities

You must undergo a full B-BBEE verification by a SANAS-accredited verification agency
Prepare documentation: financial statements, ownership register, employment equity report, skills development report, supplier list, and CSI contributions
The verification process takes 2-4 weeks
Costs range from R5,000 to R30,000 depending on company size and complexity
Certificates are valid for 12 months

Documents Needed for Verification

CIPC registration certificate and MOI
Share register and ownership documents
Annual financial statements or management accounts
Payroll records and skills development plan
Employment equity report
Supplier and procurement records
CSI or socio-economic development proof

Why B-BBEE Matters for Your Business

Government tenders — All government and municipal contracts require B-BBEE compliance. A low level disqualifies you from most tenders.
Corporate supply chains — Large companies must procure from B-BBEE compliant suppliers to maintain their own scorecard. If you are not compliant, you will be excluded from their supply chains.
Licences and permits — Some industry licences (e.g. mining, liquor, gambling) require B-BBEE compliance.
Access to finance — Some development finance institutions (e.g. SEFA, SEDA) require B-BBEE certification for funding applications.
Tax incentives — The Section 12H tax incentive rewards companies that train new black employees, but requires B-BBEE compliance.

Common B-BBEE Mistakes

Assuming you do not need one — Even if you do not tender directly, your customers may require you to be B-BBEE compliant for them to count procurement spend.
Using an expired certificate — B-BBEE certificates expire after 12 months. An expired certificate is treated as no certificate.
Not verifying your EME status annually — If your turnover exceeds R10 million, you lose your EME status and need a full QSE verification.
Not keeping proper records — Verification agencies require supporting documents. Poor record-keeping delays the process or results in a lower score.

Need Help With Your B-BBEE Certificate?

Tanosa Group assists EMEs and QSEs across Bloemfontein and the Free State with B-BBEE certificate applications, verification preparation, and compliance advice.

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