B-BBEE: What Your Business Actually Has to Do

About this guide

B-BBEE generates more confusion among small business owners than any other compliance subject, largely because most of what they are told comes from someone selling a certificate. There is no legal obligation on a private business to hold a B-BBEE status and no penalty for not having one — but your customers are scored on what they buy from you, so a good level makes you easier to buy from.

This guide starts by establishing whether you need anything at all, then sets out which category you fall into by turnover: Exempted Micro Enterprise under R10 million, Qualifying Small Enterprise between R10 million and R50 million, and Generic above that. It explains the deemed levels that most owners do not know about — a 100% black-owned EME or QSE is deemed a Level 1 contributor, and 51% or more black-owned is deemed Level 2, on the strength of a sworn affidavit alone, with no verification agency involved.

It covers the affidavit route done properly, including the dtic template, the Commissioner of Oaths, the twelve-month validity, and the serious consequences of overstating ownership, which is fronting and a criminal offence. For businesses that are actually measured, it explains the five scorecard elements. It also covers what is changing: the draft amendments gazetted on 29 January 2026 proposing a Transformation Fund route and a substantially increased Enterprise and Supplier Development weighting, which were still proposals, not law, as at September 2026.

What each section covers

Start here: do you need anything at all?

B-BBEE is not a tax. There is no obligation on a private business to have a B-BBEE status, and no penalty for not having one. What there is, is commercial pressure: your customers are scored on what they buy from you, so a good level makes you easier to buy from. If you sell only to consumers, it may genuinely not matter. If you sell to corporates, government or anyone who tenders, it decides whether you are on the list.

Which category are you?

Category is set by annual turnover under the generic Codes of Good Practice. Get this right first, because everything else follows from it.

Deemed levels: the part most owners do not know

Small businesses do not have to earn points to have a level. Black-owned EMEs and QSEs are deemed to hold a level automatically, on the strength of an affidavit alone.

The affidavit route, done properly

A sworn affidavit is a legal statement under oath. Overstating black ownership or understating turnover to gain a better level is fronting, which is a criminal offence under the B-BBEE Act with serious penalties, including a ban on doing business with the state. This is not an area to be optimistic in.

If you are measured: the five elements

Generic entities, and QSEs that are not majority black-owned, are scored against a scorecard. The generic scorecard has five elements. Three of them carry a sub-minimum, and missing a sub-minimum discounts your level regardless of your total score.

What is changing, as at September 2026

On 29 January 2026 the Department of Trade, Industry and Competition gazetted draft amendments to the Codes of Good Practice for public comment, which closed on 30 March 2026.

Practical ways a small business improves its level

Buy from black-owned suppliers where the price and quality are comparable. Procurement is the cheapest score improvement available to most businesses, because you are already spending the money. · Ask every supplier for their affidavit or certificate and keep them on file. You cannot claim what you cannot evidence. · Put training spend through a formal, recorded programme rather than ad hoc courses.

Keeping it current

Diarise the affidavit expiry 12 months from signature · Re-check your category each year end — crossing R10 million or R50 million changes everything · Check whether a sector code now applies to your industry