BBBEE Affidavit vs. Certificate: Which One Do You Need?

One of the most common questions we get from new tender applicants is: "Do I need to pay for a BBBEE certificate, or can I just use an affidavit?" The answer depends entirely on your annual turnover and black ownership percentage. Using the wrong document can lead to immediate disqualification. This guide clears up the confusion.

The Core Difference

In short: An <strong>Affidavit</strong> is a self-declaration used by smaller businesses. A <strong>Certificate</strong> is a verified document issued by an agency for larger businesses.

1. The Sworn Affidavit

Who is it for?

• <strong>Exempted Micro Enterprises (EMEs):</strong> Any business with an annual turnover of <strong>R10 million or less</strong>.
• <strong>Qualifying Small Enterprises (QSEs):</strong> Businesses with turnover between R10 million and R50 million, ONLY if they are <strong>at least 51% black-owned</strong>.

How does it work?

You download the official DTI template, fill in your details (turnover and ownership), and sign it before a Commissioner of Oaths (e.g., at a police station, bank, or post office).

Cost

<strong>Free.</strong> (Some commissioners may charge a small admin fee, but the document itself is free).

Validity

Valid for 12 months from the date of signing.

2. The SANAS-Accredited Certificate

Who is it for?

• <strong>Generic Enterprises:</strong> Any business with an annual turnover <strong>above R50 million</strong>.
• <strong>QSEs (R10m - R50m turnover):</strong> That are <strong>less than 51% black-owned</strong>.

How does it work?

You must hire a SANAS-accredited verification agency. They will audit your business against the BBBEE scorecard elements (Ownership, Management Control, Skills Development, Enterprise & Supplier Development, Socio-Economic Development).

Cost

Can range from <strong>R5,000 to R50,000+</strong> depending on the size and complexity of your business.

Validity

Valid for 12 months from the date of issue.

Comparison Table

Common Misconceptions

Misconception 1: "An affidavit is inferior to a certificate."

<strong>False.</strong> For an EME, an affidavit is the <strong>only</strong> legal requirement. A certificate is not "better"; in fact, the DTI has instructed organs of state to accept affidavits from EMEs.

Misconception 2: "I can just buy a certificate online."

<strong>Warning.</strong> Be very careful. Many online "certificates" are scams or invalid. Only a SANAS-accredited agency can issue a valid certificate. If you are an EME, you don't need to buy anything.

When to Switch from Affidavit to Certificate

You must switch to a certificate when:

1. Your annual turnover exceeds R10 million AND you are less than 51% black-owned.
2. Your annual turnover exceeds R50 million (regardless of ownership).
3. A specific tender (rarely) requires a verified certificate due to sector charter requirements (e.g., some Transport or Construction tenders).

Frequently Asked Questions

Can I use an old affidavit if my financial year hasn't ended?

No. An affidavit is valid for 12 months from the date of signing. You must sign a new one every year, based on your most recent financial year's financial statements.

What if I estimate my turnover incorrectly?

If you declare you are an EME but your audited financials later show you exceeded R10 million, your affidavit is invalid. This constitutes fraud. Always base your declaration on actual financial statements or management accounts.

Does the affidavit need to be on a specific letterhead?

No. You can use the standard DTI template. However, you can print it on your company letterhead if you wish, as long as the content remains exactly the same.

Can the police refuse to sign my affidavit?

They shouldn't, as they are Commissioners of Oaths. However, ensure the document is not already signed. You must sign it <strong>in front of them</strong>.

What is a CIPC BBBEE Certificate?

The CIPC offers a free BBBEE certificate for EMEs upon company registration or annual return filing. This is valid and accepted, just like an affidavit.

Conclusion

For the vast majority of small businesses in South Africa (turnover under R10m), the Sworn Affidavit is the golden ticket. It is free, simple, and legally binding. Don't waste money on a certificate you don't need. However, as your business grows, be prepared to transition to the formal verification process to maintain your compliance.