B-BBEE explained

Broad-Based Black Economic Empowerment (B-BBEE) is the South African policy framework that awards preference points in government tenders to companies that demonstrate broad-based economic participation. This guide covers what a B-BBEE level means, how it's calculated, and how it affects your bid score.

What is a B-BBEE contributor level?

A B-BBEE level is a rating from 1 (best) to 8, with a ninth "Non-compliant" tier for suppliers who score zero preference points. The level reflects your total score on the B-BBEE scorecard and determines how many preference points a government buyer awards your bid — either the 20 points in an 80/20 tender (for contracts up to R50 million) or the 10 points in a 90/10 tender (for contracts above R50 million).

Level 1 contributors get the full preference allocation. Level 2 gets slightly less, and so on down the scale. A non-compliant bidder still competes on price (80 or 90 points) but loses the preference differentiator entirely.

The B-BBEE scorecard

The Amended Generic Scorecard has five elements, totalling 120 points including bonuses:

  • Ownership (25 points) — black shareholding, voting rights, and economic interest.
  • Management Control (19 points) — black representation on the board and in executive positions.
  • Skills Development (25 points) — spend on training, learnerships, and bursaries for black employees.
  • Enterprise & Supplier Development (44 points) — procurement from B-BBEE-compliant suppliers, ESD and supplier-development spend.
  • Socio-Economic Development (5 points) — community spend on beneficiaries who are at least 75% black.

Three of these — Ownership, Skills Development, and ESD — are priority elements. If you score under 40% on any priority element you are discounted one level (from whatever your scorecard would otherwise earn).

Enterprise size

Your annual turnover determines which scorecard you use:

  • EME (Exempt Micro Enterprise) — turnover below R10 million. A sworn affidavit is enough; you automatically qualify at Level 4, Level 2 with 51%+ black ownership, or Level 1 with 100% black ownership.
  • QSE (Qualifying Small Enterprise) — turnover R10m–R50m. A sworn affidavit is enough for 51%+ black ownership (auto Level 2) or 100% (auto Level 1). Otherwise complete a simplified QSE scorecard via a SANAS-accredited verification agency.
  • Generic — turnover above R50 million. Full Amended Generic Scorecard via a SANAS verification agency is required.

Sector codes

Certain industries use sector-specific codes instead of the Generic Codes, including Construction, Tourism, ICT, Financial Services, Agri-BEE, and the Property Sector. If your tender is in a regulated sector, the tender document will specify which code applies and the scorecard you need to provide.

How many preference points does my level earn?

Under the Preferential Procurement Policy Framework Act (PPPFA) and the 2022 regulations, the allocation of preference points by level is:

  • Level 1: 20 points (80/20) / 10 points (90/10)
  • Level 2: 18 points / 9 points
  • Level 3: 14 points / 6 points
  • Level 4: 12 points / 5 points
  • Level 5: 8 points / 4 points
  • Level 6: 6 points / 3 points
  • Level 7: 4 points / 2 points
  • Level 8: 2 points / 1 point
  • Non-compliant: 0 points

A tender specifies either the 80/20 or 90/10 formula based on the contract value. An organ of state may deviate from these formulas in limited circumstances governed by the regulations and their own SCM policy.

Keeping your certificate current

A B-BBEE certificate is valid for 12 months from issue. Most organs of state will not accept an expired certificate — even a one-day overrun is grounds for disqualification. EMEs and QSEs with majority black ownership can renew via affidavit; other QSEs and all Generic enterprises must re-verify annually.

Common mistake: Submitting the affidavit from a previous year, or a verification certificate that expires before the tender closing date. Always check the validity date against the tender close date before packaging your bid.

Quick reference

Level 1 = 100+ points total. Non-compliant = below 40 points, or one priority element under the 40% threshold with no sub-minimum met.

Priority elements

Ownership, Skills Development, Enterprise & Supplier Development. Score under 40% on any of these and you drop a level.

Calculate yours

Use the B-BBEE calculator to estimate your level from scorecard inputs.

Open calculator

Related guides

FAQ

Frequently asked questions

B-BBEE (Broad-Based Black Economic Empowerment) contributor levels run from 1 to 8. A Level 1 contributor earns the maximum preference points in a government tender, while Level 8 is the lowest compliant level. Non-compliant suppliers earn zero B-BBEE preference points.

Your scorecard totals up to 120 points across five elements: ownership (25), management control (19), skills development (25), enterprise & supplier development (44), and socio-economic development (5). Your total score maps to a contributor level, subject to priority-element discounting.

Enterprise size is determined by annual turnover: EMEs are under R10m, QSEs are R10m–R50m, and Generic enterprises are above R50m. EMEs and QSEs with majority black ownership qualify for Level 1 or 2 automatically via an affidavit.

Under the Preferential Procurement Policy Framework Act, tenders use either the 80/20 (for contracts up to R50m) or 90/10 (above R50m) formula. The B-BBEE portion of that split — 20 or 10 points — is awarded based on contributor level, with Level 1 earning the full allocation.

One year from date of issue. EMEs and QSEs with majority black ownership can use a sworn affidavit; everyone else needs a SANAS-accredited verification agency certificate.

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