B-BBEE levels can decide whether you win a tender or lose it before anyone reads your price. Yet many SME owners still aren’t sure which level they are or which document they need. And why does a big customer keep asking for an “updated certificate”?
The good news is that most small businesses have a much simpler path than they think. If your turnover is under R50 million, you may only need a sworn affidavit, not a full verification.
This guide explains how B-BBEE levels work and what EMEs and QSEs are. It also covers when an affidavit is enough and how your level affects sales. Everything below draws on the official Codes of Good Practice and B-BBEE Commission guidance as at September 2026. Rules can change, so always confirm on the dtic B-BBEE codes page and the B-BBEE Commission website before you act.
Why B-BBEE levels matter to your sales
Your level mostly matters because of your customers. When a larger company buys from you, it earns points on its own scorecard for preferential procurement. The better your level, the more of that spend it can count.
So a procurement manager comparing two similar quotes will often favour the supplier with the stronger level. In practice, that can be the difference between staying on an approved supplier list and quietly dropping off it.
Your level can also matter when you:
- Tender for government or state-owned entity contracts.
- Apply to join a corporate enterprise and supplier development programme.
- Seek funding from development finance institutions that support black-owned businesses.
- Sell part of your business, because ownership changes can shift your level.
If you’re preparing for finance, our guide on SME funding readiness explains how compliance documents fit into a funder’s checklist.
EME, QSE or large enterprise: which are you?
First, work out your size category. Under the Amended Codes of Good Practice (Government Gazette 36928 of 11 October 2013), it depends on annual total revenue. These codes took effect on 1 May 2015.
| Category | Annual total revenue (generic codes) | How you’re measured |
|---|---|---|
| Exempted Micro-Enterprise (EME) | R10 million or less | Automatic level based on black ownership; sworn affidavit or CIPC certificate |
| Qualifying Small Enterprise (QSE) | Between R10 million and R50 million | Affidavit if at least 51% black-owned; otherwise verified on the QSE scorecard |
| Large (generic) enterprise | Above R50 million | Full verification on the generic scorecard |
There’s one important exception. If your industry has its own sector code, those thresholds and scorecards apply instead. For example, the amended ICT Sector Code uses a different points table. There, Level 1 needs 120 points on the ICT scorecard. Construction, tourism, financial services, property and other sectors also have their own codes.
Start-ups get special treatment too. The codes measure a new business as an EME for its first year. However, a start-up tendering for a contract worth more than R10 million must submit a QSE scorecard.
The B-BBEE levels table: points and recognition
Large enterprises, and QSEs that aren’t at least 51% black-owned, earn a level from their scorecard points. The table below shows the generic codes. The recognition percentage is what your customer can count of every rand it spends with you.
| B-BBEE status | Points on generic scorecard | Procurement recognition |
|---|---|---|
| Level 1 | 100 or more | 135% |
| Level 2 | 95 to under 100 | 125% |
| Level 3 | 90 to under 95 | 110% |
| Level 4 | 80 to under 90 | 100% |
| Level 5 | 75 to under 80 | 80% |
| Level 6 | 70 to under 75 | 60% |
| Level 7 | 55 to under 70 | 50% |
| Level 8 | 40 to under 55 | 10% |
| Non-compliant | Under 40 | 0% |
Source: Statement 000, Amended Codes of Good Practice (Gazette 36928). Sector codes use different points.
Picture a Joburg mining supplier that buys R1 million of goods from a Level 1 business. Its scorecard can recognise R1.35 million of that spend. By contrast, the same purchase from a non-compliant supplier counts for nothing. That gap explains why buyers ask for your certificate before they ask for your price.
How B-BBEE levels work for EMEs
If your annual revenue is R10 million or less, the rules are simple. According to the codes and the B-BBEE Commission’s FAQs, you get an automatic level based on black ownership:
- Less than 51% black-owned: Level 4 (100% recognition).
- At least 51% black-owned: Level 2 (125% recognition).
- 100% black-owned: Level 1 (135% recognition).
You don’t need a verification agency. Instead, the Commission confirms that EMEs only need a CIPC certificate or a sworn affidavit. A Commissioner of Oaths must sign the affidavit. The dtic’s official template says the affidavit is valid for 12 months from the date the commissioner signs it.
How QSEs are measured
QSEs with revenue between R10 million and R50 million have two routes.
Black-owned QSEs: affidavit route
The codes treat a QSE that is at least 51% black-owned much like an EME. It qualifies for Level 2, or Level 1 if it’s 100% black-owned. It also only needs an annual sworn affidavit confirming its revenue and ownership.
Other QSEs: scorecard verification
All other QSEs need an accredited verification professional to measure them against the QSE scorecard. The codes require ownership as a compulsory priority element, plus either skills development or enterprise and supplier development.
Missing the 40% sub-minimum on a priority element carries a penalty. In that case, your level drops by one until your next verification. Therefore, plan your spend on these elements early in your financial year, not a month before the audit.
Is your business ready for bigger customers and tenders? Take the free Business Health Check. It takes about 3 minutes (10 questions) and shows how ready your sales, finances and systems are for growth.
Your quick guide to documents
Use this summary to see what you need to prove your level.
| Your business | Black ownership | Level | Document you need |
|---|---|---|---|
| EME (R10m or less) | 100% | Level 1 | Sworn affidavit or CIPC certificate |
| EME (R10m or less) | 51%–99% | Level 2 | Sworn affidavit or CIPC certificate |
| EME (R10m or less) | Under 51% | Level 4 | Sworn affidavit or CIPC certificate |
| QSE (R10m–R50m) | 100% | Level 1 | Sworn affidavit |
| QSE (R10m–R50m) | 51%–99% | Level 2 | Sworn affidavit |
| QSE (R10m–R50m) | Under 51% | Per scorecard | Certificate from an accredited verification agency |
| Large (over R50m) | Any | Per scorecard | Certificate from an accredited verification agency |
Keep a diary reminder two months before your affidavit or certificate expires. Customers often suspend payments or orders until they receive a current document.
How to improve B-BBEE levels as a growing SME
What if you’re a QSE that isn’t majority black-owned, or you’re about to cross the R50 million line? Then your B-BBEE levels depend on scorecard points, so treat compliance as a year-round plan rather than an audit-season scramble.
- Know your measurement year. Most points relate to spend and actions within your financial year.
- Budget for the priority elements. For example, skills development and enterprise and supplier development both need planned spend.
- Review your own suppliers. Buying from better-rated suppliers can lift your procurement score too.
- Track progress monthly. A simple tracker with owners and deadlines avoids last-minute surprises.
- Get advice on ownership deals. Structures that look like fronting create legal risk as well as reputational damage.
Picture a Durban packaging firm with R38 million turnover. It could assign its finance manager to own the scorecard, review it every quarter and link each element to a named action. As a result, verification becomes a confirmation of work already done.
Proposed changes and compliance risks
In January 2026, the Minister of Trade, Industry and Competition published draft amendments to the codes for public comment. The Draft Statement 000 of 2026 keeps the R10 million and R50 million thresholds. Meanwhile, it proposes adding a Transformation Fund contribution under enterprise and supplier development.
Draft amendments only take effect once they are finalised and published in the Government Gazette. So keep complying with the current codes, and check the dtic site for the latest status before you change your plans.
Finally, take false claims seriously. According to the B-BBEE Commission, anyone convicted of fronting may face a fine of up to 10% of annual turnover or up to 10 years in prison. Never sign an affidavit you can’t back up with share registers and financial statements.
When you’re selling into corporates, your level is one part of a wider sales story. Our guide to the B2B sales process shows where compliance fits in winning larger accounts. If you plan to raise debt, see what banks look for in a business loan.
Frequently asked questions
What B-BBEE level is an EME automatically?
Under the generic codes, an EME with annual revenue of R10 million or less is automatically Level 4. It becomes Level 2 if it’s at least 51% black-owned, and Level 1 if it’s 100% black-owned. An EME only needs a sworn affidavit or CIPC certificate, not a verification audit. Sector codes may set different thresholds.
How long is a B-BBEE sworn affidavit valid?
The dtic’s official EME affidavit template says it’s valid for 12 months from the date the Commissioner of Oaths signs it. Diarise renewal at least a month before expiry. Many corporate customers need a current affidavit on file before they’ll process new orders or payments.
Does a QSE need a B-BBEE verification certificate?
Only if it’s less than 51% black-owned. A QSE with revenue between R10 million and R50 million that is at least 51% black-owned uses a sworn affidavit instead. It qualifies for Level 2, or Level 1 at 100% black ownership. Other QSEs need verification by an accredited agency against the QSE scorecard.
What happens if I’m a non-compliant contributor?
A non-compliant contributor scores below 40 points and gets 0% procurement recognition. In practice, your customers can’t count any of their spend with you towards their own B-BBEE scorecard. That makes you less attractive to corporates and state entities, even if your price and quality are competitive.
Your next step
Start by confirming three facts: your latest annual revenue, your exact black ownership percentage and whether a sector code applies to you. Then get the right document in place and diarise its renewal.
Next, look at the bigger picture. Take the free Business Health Check to see how ready your business is to win larger customers. It takes about 3 minutes.
If you’d like help building a growth plan around new markets and tenders, book a 30-minute call. You can also see how Edvysor for SMEs keeps your goals, deadlines and compliance actions in one place.
Last updated: 24 September 2026
