What is B-BBEE?
Definition of B-BBEE
What Does B-BBEE Stand For?
What are the 5 Pillars of BBBEE?
Black ownership is based on various criteria, including the net value of shares, the influence of black individuals on business direction, profit distribution among black shareholders and the share payment timeline.
This pillar involves the representation of black individuals who guide the business’s direction, along with those in key management positions responsible for day-to-day operations.
Measuring investment in black employee training and development, the Skills Development pillar acknowledges qualifying learnerships and upskilling programmes.
Businesses can claim points for offering ESD support programmes. An example of this is donating vehicles to black company drivers, helping them start a delivery business.
Distinct from Corporate Social Investment (CSI), Socio-Economic Development creates sustainable access to the South African economy. A minimum of 1% of expenditure must go towards long-term social development initiatives.
Okiru Offers Specialised B-BBEE Scorecard Training designed for your company needs
Advantages of B-BBEE
Disadvantages of BBBEE
Contact Okiru Consulting today to design a B-BBEE strategy that is compliant, audit-ready and built for growth.
FAQs
Most verifications are completed within four to eight weeks; urgent verifications can be fast‑tracked.
The duration of a B‑BBEE verification depends on your organisation’s size, complexity and preparedness. For most small and medium‑sized enterprises, the entire process—from gathering documents to receiving your certificate—typically takes four to eight weeks. This period covers preparation of documentation, submission to the verification agency, site visits, interviews, data analysis and issuance of the certificate. In urgent cases, some agencies can expedite the process to two to three weeks, but this requires complete and accurate information up front. Larger or more complex organisations may take longer, especially if documentation is missing or internal processes are not aligned. Engaging a consultant early helps streamline preparation and avoid delays.
Costs vary widely; expect anywhere from R10 000 to R30 000 for small to mid‑sized businesses, with larger companies paying more.
There is no single price for a B‑BBEE verification because fees are influenced by several factors: the size of your business, the complexity of your ownership structure, your industry sector, the level of black ownership and the verification agency’s own fee structure. As a guideline, small to medium‑sized entities typically spend between R10 000 and R30 000 on a verification. Larger enterprises often pay more due to the increased scope of documentation and the need for deeper audits. Preparation also affects cost; well‑organised businesses with complete documentation may reduce both fees and verification time. For exempt micro‑enterprises (turnover ≤ R10 million), the compliance route is much cheaper: a sworn affidavit or free CIPC certificate is usually all that’s required.
Affidavits are for very small businesses; certificates are for larger entities and require a full verification.
A B‑BBEE certificate is issued by a SANAS‑accredited verification agency after it has assessed your organisation against the five elements of the B‑BBEE scorecard. This is required for Qualifying Small Enterprises (QSEs) and Generic entities with annual turnover above R10 million. The certificate shows your level of compliance and must be renewed annually. In contrast, a sworn affidavit is used by Exempt Micro‑Enterprises (EMEs) with turnover up to R10 million (and some QSEs with 51 % or greater black ownership). Instead of undergoing verification, the business completes an affidavit confirming its turnover and black ownership. While both documents serve the same purpose—proving B‑BBEE status—affidavits are simpler, quicker and cost‑free. However, if your turnover or ownership changes, you must move to the certificate route.
Both certificates and affidavits are valid for 12 months and must be renewed annually.
Whether you receive a B‑BBEE certificate through verification or use a sworn affidavit, both are valid for one year from the date of issue. The annual renewal ensures that your B‑BBEE status reflects your most recent financial year and any changes in ownership, staffing, training or procurement. Because clients and government tenders expect a current certificate, it’s important to plan your verification timeline around your financial year‑end and to schedule your next application several months before expiry. Using a consultant helps you keep track of renewal dates and ensures you maintain continuous compliance.
Be prepared with financial statements, ownership records, employment and training data, procurement and supplier details, and evidence of socio‑economic initiatives.
A verification agency will request a comprehensive set of documents to substantiate your B‑BBEE scorecard claims. Typical requirements include:
Financial statements (audited or reviewed) to confirm turnover and economic activity.
Ownership documents such as share registers, shareholder agreements and supporting ID copies to verify black ownership percentages.
Employment records detailing workforce demographics (race, gender, disability) and management representation.
Skills development evidence including training programmes, learnerships, bursaries, participant lists and proof of expenditure on black employees.
Procurement and supplier data showing spend with B‑BBEE‑compliant suppliers and evidence of preferential procurement practices.
Enterprise and supplier development records (contracts, invoices and support documentation) for contributions made to black‑owned businesses.
Socio‑economic development contributions demonstrating donations or community initiatives aimed at empowering black South Africans.
Previous certificates or affidavits and any declarations filed for exempt entities.
Keeping these records organised and up‑to‑date makes the verification smoother, reduces costs and minimises the risk of a lower score due to missing information.
Select a SANAS‑accredited agency with transparent pricing and industry expertise; a consultant helps you prepare and optimise your score.
Only agencies accredited by the South African National Accreditation System (SANAS) or another recognised body can issue valid B‑BBEE certificates. When choosing an agency, consider its accreditation status, experience in your industry, reputation for accuracy and integrity, and the clarity of its fee structure. It’s also wise to check whether the agency offers additional support services—such as post‑verification reporting or guidance on improvement areas. Working with a B‑BBEE consultant can be highly beneficial: consultants help you interpret the Codes of Good Practice, identify gaps in your scorecard, prepare your documentation, and implement strategies that improve your level. They also manage communication with the verification agency, keep you on schedule and ensure that every rand invested in ownership, training, procurement or socio‑economic development translates into measurable points. Okiru’s consultants combine regulatory expertise with AI‑enabled tools to make the entire process faster, more transparent and aligned with your business goals.
