Broad-Based Black Economic Empowerment (B-BBEE) certification significantly improves your chances of securing funding in South Africa. While not always mandatory, higher B-BBEE status opens doors to specialized funding programmes, better terms, and priority access. This guide covers what B-BBEE documentation you need and how to get it.
Why B-BBEE Matters for Funding
B-BBEE status impacts your funding access in several ways:
- Access to specialized programmes: Many funders target Black-owned, youth-owned, or women-owned businesses
- Priority processing: Higher B-BBEE status often fast-tracks applications
- Better terms: Some funders offer lower interest rates or grant components for strong B-BBEE status
- Compliance requirement: Public sector funding and ESD (Enterprise and Supplier Development) require B-BBEE documentation
Understanding B-BBEE Levels
B-BBEE status is measured on a scale of Level 1 to Level 8, plus "Non-Compliant":
| Level | Black Ownership | Funding Impact |
|---|---|---|
| Level 1 | 100%+ (includes bonus points) | Best access, priority for all programmes |
| Level 2 | ≥85% | Excellent access, strong preference |
| Level 3 | ≥75% | Good access, moderate preference |
| Level 4 | ≥65% | Standard access |
| Level 5-8 | <65% | Limited access to targeted programmes |
| Non-Compliant | No certificate | Excluded from many programmes |
What B-BBEE Documentation You Need
1. EME Affidavit (Under R10 Million Turnover)
What It Is
A sworn affidavit confirming your business is an Exempted Micro Enterprise (EME) with turnover under R10 million per year.
B-BBEE Status Granted
- 51%+ Black ownership: Automatic Level 4 contributor
- 100% Black ownership: Automatic Level 2 contributor
- Under 51% Black ownership: Automatic Level 4 contributor (but limited access to targeted programmes)
What the Affidavit Must State
- Company name and registration number
- Annual turnover is under R10 million
- Black ownership percentage
- Youth/women ownership percentage (if applicable)
- Declaration that information is true and correct
Validity
EME affidavits are typically valid for 12 months from date of signing. Renew annually.
2. QSE Certificate (R10 Million - R50 Million Turnover)
What It Is
A Qualifying Small Enterprise (QSE) certificate issued by a SANAS-accredited B-BBEE verification agency.
QSE Scorecard
QSEs are measured on a simplified scorecard with fewer elements than large companies:
- Ownership (25 points): Black ownership percentage
- Management Control (19 points): Black people in management
- Skills Development (20 points): Training spend
- Enterprise and Supplier Development (40 points): Support for other Black-owned businesses
- Socio-Economic Development (5 points): CSI contributions
Verification Process
- Choose a SANAS-accredited verification agency
- Submit financial statements and supporting documents
- Agency conducts on-site or desktop verification
- Receive B-BBEE certificate with level rating
Validity
12 months from date of issue
3. Full B-BBEE Certificate (Over R50 Million Turnover)
What It Is
Full B-BBEE certificate measured against the complete Generic Scorecard with all five elements.
Generic Scorecard Elements
- Ownership (25 points)
- Management Control (19 points)
- Skills Development (20 points)
- Enterprise and Supplier Development (40 points)
- Socio-Economic Development (5 points)
When Required
Most SME funders don't require full verification. This is mainly for:
- Large corporate funding (ESD programmes)
- Public sector tenders over R30 million
- Industry-specific programmes requiring full compliance
Ownership Structure Requirements
Black Ownership Thresholds
What "Black Ownership" Means
Under B-BBEE, "Black people" includes African, Coloured, and Indian South African citizens who were disadvantaged by apartheid. Ownership is measured by:
- Voting rights
- Economic interest (share of profits)
- Right to appoint/remove directors
Key Thresholds for Funding
- 51%+ Black ownership: Qualifies for most Black-owned enterprise programmes
- 30%+ Black ownership: Qualifies for some targeted programmes
- 100% Black ownership: Level 2 EME status (best funding access)
Youth and Women Ownership
Youth-Owned Enterprises
To qualify as youth-owned:
- 51%+ ownership by persons aged 18-35 years
- Youth shareholders must have voting rights
- Youth must be actively involved in management
Women-Owned Enterprises
To qualify as women-owned:
- 51%+ ownership by women
- Women shareholders must have voting rights
- Women must hold at least 51% economic interest
Funding Impact
Youth and women-owned businesses qualify for:
- Dedicated funding streams (NYDA, Women Empowerment Funds)
- Lower interest rates
- Grant components (up to 50% for youth startups)
- Fast-tracked processing
How to Get an EME Affidavit
Step-by-Step Process
- Prepare affidavit document: Use a template or draft your own including all required information
- Gather supporting documents:
- CIPC registration documents showing shareholding
- ID copies of all shareholders
- Latest financial statements or management accounts (showing turnover under R10m)
- Visit a Commissioner of Oaths: Available at:
- Police stations (free)
- Banks (usually free for account holders)
- Attorneys/law firms (R50-R100)
- Post offices (some branches)
- Take the oath: Swear/affirm that the information is true
- Get it stamped and signed: Commissioner stamps and signs the affidavit
What to Bring
- Original ID (not photocopy)
- Affidavit document (unsigned)
- Supporting documents (optional but recommended)
Processing Time
Same day - usually 15-30 minutes
How to Get a B-BBEE Certificate
Step 1: Choose Verification Agency
Select a SANAS-accredited B-BBEE verification agency. Find accredited agencies at sanas.co.za or ask for referrals from your accountant.
Step 2: Submit Application
Verification agencies will request:
- CIPC documents
- Audited financial statements (last 2-3 years)
- Shareholding structure and agreements
- Employment equity data
- Skills development records
- Supplier spend analysis
Step 3: Verification Process
Agency conducts verification (desktop or on-site) and calculates your scorecard points.
Step 4: Receive Certificate
Agency issues B-BBEE certificate showing your level rating, valid for 12 months.
Costs and Timeline
| Option | Cost | Processing Time | Validity |
|---|---|---|---|
| EME Affidavit | R50-R100 | Same day | 12 months |
| QSE Certificate | R3,000-R10,000 | 2-4 weeks | 12 months |
| Full Certificate | R15,000-R50,000 | 4-8 weeks | 12 months |
How B-BBEE Impacts Funding Access
Programmes Requiring Minimum B-BBEE Status
- 51%+ Black ownership: Most government funding, ESD programmes, SEDFA targeted programmes
- 51%+ Youth ownership: NYDA, SEDFA Youth Enterprise Development
- 51%+ Women ownership: Women Empowerment Funds, NEF Women Fund
- Level 1-4: Some corporate ESD programmes, preferential tender access
Benefits of Higher B-BBEE Status
- Lower interest rates (0.5-2% reduction)
- Grant components (10-50% of funding amount)
- Faster processing (priority queue)
- Higher approval rates
- Access to multiple funding streams simultaneously
Improving Your B-BBEE Status
If your current ownership structure limits funding access, consider:
- Bringing in Black shareholders: Even 30% Black ownership opens doors
- Youth/women shareholders: If directors are young or female, consider restructuring shareholding
- Skills development: Invest in training for employees (scores points)
- Supporting Black-owned suppliers: Shift procurement to EMEs/QSEs
Tips for Success
- Start with EME affidavit: If turnover is under R10m, don't pay for expensive verification
- Renew before expiry: Start renewal process 2 months before expiry
- Keep ownership proof ready: CIPC shareholding certificates, shareholder agreements
- Declare youth/women ownership: Even if not 51%, it helps with some programmes
- Store digital copies: Keep scanned affidavit/certificate for quick sharing with funders
Next Steps
- Check your CIPC shareholding structure to confirm Black/youth/women ownership percentage
- If turnover under R10m: Get EME affidavit from Commissioner of Oaths
- If turnover R10m-R50m: Contact B-BBEE verification agency for QSE certificate
- Browse funding programmes by B-BBEE status in FundingOS
- Review the Master Compliance Checklist
Need B-BBEE Verification Help?
Get quotes from verified B-BBEE consultants and verification agencies who can help you obtain your certificate or affidavit.
- Verified & B-BBEE compliant providers
- Free quotes, no obligation
- Compare multiple providers
- POPIA compliant process