Did you know there are different B-BBEE Scorecards?

Updated: Apr 26


Did you know there are different B-BBEE Scorecards?

With reference to the 2013 General Amended Codes, there are three applicable scorecards for B-BBEE compliance being:


The “Exempted Micro Enterprise (EME)” scorecard:

  • This scorecard is applicable to any enterprise with an annual turnover of R10 million per annum or less.

  • A Start-Up Enterprise is ordinarily regarded as an EME for its first year of trade HOWEVER, if a Start-up Enterprise were to tender for a contract in excess of the threshold for EME’s, it would be measured on the applicable scorecard referred to below.

  • An EME automatically qualifies for Level 4 B-BBEE contributor status and have 100% procurement recognition BUT if an EME has the following Black Ownership status, its B-BBEE level can be enhanced:

  • Having 51% or more direct Black or Black Women Ownership, qualifies for an automatic Level 2 B-BBEE Contributor status with 125% procurement recognition and

  • Having 100% direct Black or Black Women Ownership, qualifies for an automatic Level 1 B-BBEE Contributor status with 135% procurement recognition.

  • For measurement purposes, an EME is required to produce a sworn affidavit confirming its turnover and Black Ownership.


The “Qualifying Small Enterprise (QSE)” scorecard:

  • This scorecard is applicable to any enterprise with an annual turnover between R10 to R50 million per annum.

  • If a QSE has the following Black Ownership status, its B-BBEE level can also be enhanced AND it can make use of a sworn affidavit confirming its turnover and Black Ownership:

  • Having 51% or more direct Black or Black Women Ownership, qualifies for an automatic Level 2 B-BBEE Contributor status with 125% procurement recognition and

  • Having 100% direct Black or Black Women Ownership, qualifies for an automatic Level 1 B-BBEE Contributor status with 135% procurement recognition.

  • If however the QSE has less than 51% direct Black and/or Black Women Ownership, it must comply with all the elements on the QSE scorecard and apply for a formal B-BBEE Verification conducted by a SANAS accredited verification agency.


The “Generic or Large Enterprise (LE)” scorecard:

  • This scorecard is applicable to any enterprise with an annual turnover exceeding the R50 million per annum threshold.

  • Irrespective of its Black Ownership status, a LE must comply with all the elements on the LE scorecard and apply for a formal B-BBEE Verification conducted by a SANAS accredited verification agency.

 

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