B-BBEE for Small Business: When an Affidavit Is Enough and When You Need a Certificate
The rule, in one paragraph
Most small South African businesses never need to pay a verification agency for a B-BBEE certificate. Under the Amended Codes of Good Practice, an enterprise with annual total revenue of R10 million or less is an Exempted Micro Enterprise (EME), and an EME “is only required to obtain a sworn affidavit or Certificate issued by Companies and Intellectual Property Commission (CIPC) on an annual basis”. A business with revenue between R10 million and R50 million is a Qualifying Small Enterprise (QSE) — and here is the part that catches people out: only a black-owned QSE gets the affidavit route. Every other QSE must be measured on the QSE scorecard by a verification agency. Above R50 million you are a Large (Generic) Enterprise, and an affidavit is not an option at all.
The three size bands, and what each one has to produce
The bands are set by total revenue, not profit and not headcount. Statement 000 of the Amended Codes puts it plainly: any enterprise with an annual total revenue of R10 million or less qualifies as an EME; a measured entity with an annual total revenue of between R10 million and R50 million qualifies as a QSE; and any enterprise with an annual total revenue of R50 million and more qualifies as a Large Enterprise.
Start-ups are ordinarily treated as EMEs. But a start-up tendering for a contract above the EME threshold loses that shelter: the Codes require a start-up to submit a QSE scorecard when tendering for a contract worth more than R10 million but less than R50 million, and a Generic scorecard for contracts of R50 million or more, using annualised data. If you have just incorporated and are already chasing a large tender, check this before you assume your affidavit will carry you.
Government departments apply the same logic when they screen bids. A National Department of Health guidance note issued in June 2026 states it bluntly for bidders: those with annual turnover exceeding R50 million “are generally required to submit a valid SANAS accredited B-BBEE certificate and do not qualify to submit an EME/QSE sworn affidavit”. If you are bidding for public work, this sits alongside the other registrations you need — our guide to registering on the Central Supplier Database covers the rest of that paperwork.
What the affidavit actually gets you: the automatic levels
An affidavit is not a consolation prize. For a black-owned small business it produces the best possible B-BBEE status without a single point being scored on a scorecard.
An EME is deemed to have a B-BBEE status of Level Four Contributor with a recognition level of 100%. An EME that is 100% black owned, measured using the flow-through principle, is elevated to Level One Contributor with a recognition level of 135%. An EME that is at least 51% black owned is elevated to Level Two Contributor at 125%. The same elevation applies to QSEs: 100% black owned gives Level One at 135%, and at least 51% black owned gives Level Two at 125%.
Read that again if you run a white-owned micro business, because it is the single most misunderstood point in this area: you are already a Level Four contributor at 100% recognition simply by being under R10 million. You do not need to buy anything, restructure anything, or sell equity to get there. All you need is an affidavit that says so.
The affidavit itself confirms only two things for an EME — annual total revenue of R10 million or less, and the level of black ownership. For a black-owned QSE it confirms revenue of between R10 million and R50 million, and the level of black ownership. It must be renewed on an annual basis, which is why treating it as a yearly task alongside your other filings is sensible; our company compliance calendar is built for exactly that kind of recurring obligation.
The nuance that costs tenders: not every QSE may use an affidavit
Here is where cheap online advice goes wrong. The Codes say a QSE “must comply with all of the elements of B-BBEE for the purposes of measurement”. The affidavit exemption in paragraph 5.3.3 applies to a Black Owned QSE — that is, one falling within the enhanced-recognition paragraphs, meaning at least 51% black owned.
So a QSE turning over R30 million with 30% black ownership cannot swear an affidavit. It must be verified against the QSE scorecard by a SANAS-accredited agency, and that costs real money and real preparation time. A business that submits an affidavit in that position is not merely non-compliant on paperwork — it has made a misrepresentation, which the Codes state expressly “constitutes a criminal offence as set out in the B-BBEE Act as amended”.
Note also that a black-owned EME or QSE may elect to be measured on the scorecard instead. That is occasionally worth doing where a large customer's own supplier-development scoring rewards a verified certificate, but for most small firms the affidavit is faster, free and gives the same level.
Ten ways a valid affidavit gets thrown out
The Department of Health guidance note lists what a bid evaluator checks, and an affidavit that fails any of it “is deemed to be invalid” — meaning preference points are simply not allocated. In practice the recurring failures are:
1. The deponent's name does not match the identity document, or the ID number is missing. 2. The designation is not indicated, so there is nothing confirming the person is a director, owner or member authorised to depose. 3. The enterprise name does not match the CIPC registration documents. 4. The black ownership, black female ownership and designated-group percentages are incomplete. 5. Total revenue is stated without saying whether it comes from audited financial statements or management accounts. 6. The financial year end used to determine total revenue is omitted. 7. More than one B-BBEE status level is claimed — an enterprise can only have one. 8. Empowering supplier status is not indicated. 9. The deponent's signature date and the Commissioner of Oaths' signature date do not correspond. 10. The affidavit is commissioned by an employee or ex officio of the enterprise — which is invalid, because a person cannot in law commission an affidavit in which they have an interest.
That last one is worth underlining. Using your own bookkeeper, a fellow director or an in-house attorney as Commissioner of Oaths invalidates the document. Use an independent commissioner — a police station, a post office, or an unconnected attorney.
If you do have to be verified: what the scorecard measures
A QSE that cannot use an affidavit is scored on five elements: Ownership (Code series 100), Management Control (200), Skills Development (300), Enterprise and Supplier Development (400) and Socio-Economic Development (500). On the current generic scorecard those carry 25, 19, 20, 40 and 5 points respectively, with bonus points on top.
Two mechanics matter more than the raw points. First, priority elements: a QSE must comply with Ownership as a compulsory element, plus either Skills Development or Enterprise and Supplier Development. Second, discounting: a QSE or Generic Enterprise that fails to meet the 40% sub-minimum on any applicable priority element has its B-BBEE status level discounted one level, and the discounted level becomes the applicable status. A business can therefore score respectably overall and still drop a level on a single sub-minimum.
The criminal side: fronting is not a paperwork problem
The B-BBEE Amendment Act 46 of 2013 inserted section 13O into the principal Act. A person commits an offence if they knowingly misrepresent, or attempt to misrepresent, the B-BBEE status of an enterprise; provide false information to a verification professional to secure a status or benefit; provide false information relevant to assessing B-BBEE status to any organ of state or public entity; or engage in a fronting practice.
The penalties are not nominal. On conviction for a section 13O(1) offence a person is liable to a fine or imprisonment “for a period not exceeding 10 years”, or both — and where the convicted person is not a natural person, to a fine “not exceeding 10 per cent of its annual turnover”. In determining the fine the court must take into account the value of the transaction derived, or sought to be derived, from the offence. Section 13P adds that a person convicted may not, for 10 years from the date of conviction, contract or transact any business with any organ of state or public entity, and must be entered into the register of tender defaulters that the National Treasury may maintain.
There is also a reporting duty: a verification professional, procurement officer or official of an organ of state who becomes aware of such an offence, or an attempt to commit one, and fails to report it to a law enforcement agency, is themselves guilty of an offence.
What is proposed to change
The Minister of Trade, Industry and Competition gazetted a Draft Statement 000 of 2026 for public comment, published in January 2026 with a 60-day comment window. The draft lists two key amendments: the introduction of a Transformation Fund under the Enterprise and Supplier Development element, and an amendment of the weighting points of the B-BBEE scorecard — the draft moves ESD from 40 points to 62 (with the maximum an entity can score shown as 47), taking the scorecard total from 109 to 131 points before bonuses.
Two things to hold onto. First, this is a draft: until it is finalised and gazetted, the current Codes apply. Second, the draft leaves the EME and QSE eligibility thresholds and the affidavit route untouched. If you are a small business, nothing in the proposal changes the R10 million and R50 million lines or your right to swear an affidavit.
Common questions
Do I need a company to get an affidavit? No — the affidavit is about the enterprise's revenue and ownership, and a sole proprietor can depose to one. Most owners incorporate anyway for liability and contracting reasons; our step-by-step guide to registering a company and our business registration service cover that.
Is an affidavit as good as a certificate? For an EME or a black-owned QSE, yes — it establishes the same status level. What it must not do is overstate revenue band or ownership.
What if my revenue crosses R10 million mid-year? Your classification follows the total revenue for the year under review, measured against your financial year end — which is why the guidance requires you to state that year end on the affidavit. Cross into the R10–R50 million band and you become a QSE at your next annual affidavit, and if you are not at least 51% black owned you will need verification from that point.
Does sector matter? Yes. Several industries — construction, ICT, tourism, agriculture, financial services and others — have gazetted sector codes with their own thresholds and scorecards that override the generic Codes. Check whether a sector code applies to you before relying on the generic R10 million and R50 million lines.
Where does this fit with tax? Nowhere directly — B-BBEE status and tax status are separate regimes. If you are working through a new company's obligations, see the SARS registrations a new company needs and, if you qualify, small business corporation tax relief. Where a better B-BBEE level is winning you work you cannot yet fund, compare options on our business loan comparison, and make sure the business banking is in order — see the best business bank accounts.
Sources and disclaimer
Figures here are established from primary sources: the Broad-Based Black Economic Empowerment Act 53 of 2003 as amended by the B-BBEE Amendment Act 46 of 2013 (Government Gazette No. 37271, 27 January 2014) for sections 13O and 13P; Amended Code Series 000, Statement 000 (General Principles and the Generic Scorecard) issued under section 9 of the Act, as reproduced in the Department of Trade, Industry and Competition's Draft Statement 000 of 2026 published for public comment; and a National Department of Health guidance note on completing QSE/EME sworn affidavits dated 5 June 2026, issued for the purposes of the Preferential Procurement Regulations, 2022.
This is general information, not legal or financial advice. Sector codes, tender-specific requirements and the pending amendments can all change the answer for a particular business. Where a contract or a tender turns on your B-BBEE status, have the position confirmed by a B-BBEE practitioner or attorney before you sign an affidavit — the criminal exposure for getting it wrong is set out above.
