B-BBEE Act
All SectorsBroad-Based Black Economic Empowerment Act
The B-BBEE Act establishes the legal framework for broad-based black economic empowerment in South Africa. It requires all organs of state and public entities to consider B-BBEE status when making procurement decisions, issuing licenses, entering into partnerships, and selling state-owned assets. B-BBEE is measured through a scorecard system with five elements: ownership, management control, skills development, enterprise and supplier development, and socio-economic development. B-BBEE levels range from Level 1 (135% procurement recognition) to Non-Compliant. The B-BBEE Commission oversees implementation and investigates complaints.
B-BBEE Scorecard Elements
Measured across five elements: ownership (25 pts), management control (15 pts), skills development (25 pts), enterprise and supplier development (40 pts), and socio-economic development (5 pts) for a total of 110 points under the Financed Scorecard (QSE/Large).
Procurement Recognition Levels
Level 1 (135%), Level 2 (125%), Level 3 (110%), Level 4 (100%), Level 5 (80%), Level 6 (60%), Level 7 (50%), Level 8 (10%), and Non-Compliant (0%).
B-BBEE Commission
Established to oversee, supervise, and promote adherence to the B-BBEE Act (Section 4B).
Verification Requirements
EMEs and QSEs may use sworn affidavits; large enterprises must use SANAS-accredited verification agencies.
- Determine your B-BBEE status level through SANAS-accredited verification or sworn affidavit
- Register with the B-BBEE Commission if required
- Prepare valid B-BBEE certificate or affidavit for each tender submission
- Ensure all B-BBEE documentation is current (not older than 12 months)
- Verify that enterprise classification (EME/QSE/Large) is correctly stated