As per Schedule 1  of the Amended General B-BBEE Codes of Good Practice, a Black Designated Group Supplier is defined as follows:   “means a supplier to the Measured Entity that is at least 51% owned by one or more of the following categories of ownership within its structure:   (a) unemployed black people not attending and not required by law to attend an educational institution and not awaiting admission to an educational institution;     (b) Black people who are youth as d

Persons with disabilities are the largest marginalised group globally.   Paragraph 2.1.1.3 under Statement 300   of the Amended General B-BBEE Codes of Good Practice encourages the inclusion of persons with disabilities in terms of Bursaries, Learnerships, Internships, Apprenticeships and any other training initiative. The clause is stated as follows:   “2.1.1.3 Skills Development Expenditure on Learning Programmes specified in the Learning Programme Matrix for 'Black' employ

Section 1 of the Employment Equity Act  defines People with Disabilities as “ people who have a long-term or recurring physical. or mental impairment, which substantially limits their prospects of entry into, or advancement in, employment”   Furthermore, the Codes of Good Practice for Persons  with disabilities outlines more detailed requirements and definitions in line with the above. Members need to ensure that the definition of People with Disabilities is clearly understoo

Under the element of Ownership, there is an existing principle that allows for the modification of Black Ownership in an Ownership Structure. The rules are as follows under the General Amended B-BBEE Codes of Good Practice:   A Measured Entity applying this Modified Flow-Through Principle cannot benefit from the Exclusion Principle. The Modified Flow-Through Principle applies to B-BBEE owned or controlled company in the Ownership of the Measured Entity. In calculating Exercis

As Practitioners in the Industry, we use the term Broad-Based Black Economic Empowerment or B-BBEE quite frequently, but what does it actually mean formally?   As per the Broad-Based Black Economic Empowerment Act, Broad-Based Black Economic Empowerment means:   The viable economic empowerment of all black people, in particular women, workers, youth, people with disabilities and people living in rural areas, through diverse but integrated socio-economic strategies that includ

Enterprise Development and Supplier Development were designed to complement one another. Under the General Amended B-BBEE Codes of Good Practice, the aim is for an organisation to develop a Beneficiary through Enterprise Development, then procure a good or service from them, and then elevate them to a Supplier Development Beneficiary. Bonus Points are available for such a successful elevation and creates an ecosystem of sustainable impact.   To achieve the Bonus Points on off

Although the Definition of Black People has been in existence for some time now, we often find that it is still not clear for many. There is often a confusion around certain race groups or the way the person has obtained South African citizenship.   The definition of “Black People” as per the B-BBEE Act is as follows:   “Black People” is a generic term which means Africans, Coloureds and Indians- (a) who are citizens of the Republic of South Africa by birth or descent; or (b)

The Author or Deponent of a Sworn Affidavit must be a duly represented registered Director, Owner, Member or Shareholder of an organisation. This individual also needs to understand the contents of what they are declaring and ensure that there is no misrepresentation in any form. Where an organisation has foreign shareholders, the same principle applies.   A Sworn Affidavit is Invalid if anyone other than the above acts as a Deponent.   Certificate Collection Services  are av

SANAS accredited B-BBEE Rating Agencies evaluate compliance based on verifiable evidence, not declarations or statements. Each claim must be backed by traceable data for certain elements, such as payroll records, training invoices, or latest supplier B-BBEE Statuses valid for the Financial Year End being verified.   Common B-BBEE Verification challenges include mismatched initiatives for different Financial Years, missing supporting documentation, and incorrect classification

VAT is a Total Measured Procurement Spend (TMPS) exclusion as per  Clause 6.1 of Statement 400 of the Amended Generic Codes of Good Practice :   “6.1 Taxation: any amount payable to any person representing a lawful tax or levy imposed by an organ of state authorised to impose such a tax or levy, including rates imposed by a municipality or other local government."   Therefore, to confirm that VAT is an exclusion from an organisation’s TMPS, it must be recorded as such in its

The Construction B-BBEE Sector Codes of Good Practice differs from others as it does not incorporate Enterprise Development as an element. Therefore, what happens if an organisation is measured on the Amended General B-BBEE Codes of Good Practice, but its Enterprise Development Beneficiary is subject to the Construction B-BBEE Sector Codes of Good Practice?   There is no cross-implementation in Amended General B-BBEE Codes of Good Practice and Sector B-BBEE Codes of Good Prac

As per the B-BBEE Act, Section 10, Paragraph 1 – Status of Codes of Good Practice states the following: 1.      Every organ of state and public entity must apply any relevant code of good practice issued in terms of this Act in- a) Determining qualification criteria for the issuing of licences, concessions or other authorisations in respect of economic activity in terms of any law; b)   Developing and implementing a preferential procurement policy; c)   Determining qualificat

The Financial Sector Transformation Council (FSTC) issued a Formal Notice  calling for the submission of B-BBEE Reports for the issue date between 01 January 2025 and 31 December 2025. Submission Platform: All reports should be submitted electronically via email to reporting@fstc.org.za  with the subject: FSTC 2025 Reporting – (name of entity). Submission Deadline: All required documentation must be submitted no later than the close of business on Friday, 27 February 2026.Sho

The Balanced Broad-Based Black Economic Empowerment (B-BBEE) Scorecard remains one of South Africa’s most critical levers for sustainable and inclusive economic transformation. More than a compliance tool, it represents a strategic framework that challenges corporate leaders to redefine value creation, not only in financial terms but through measurable social and economic impact.   Its impact is visible in the evolution of South Africa’s business landscape: an expanding base

An organisation may not claim the salary for an employee Bursar as part of its Bursary Programme. However, as per 2.1.1.2 of the Skills Development Scorecard under Statement 300  of the Amended General B-BBEE Codes of Good Practice , an organisation may claim a stipend for an unemployed Bursar.   2.1.1.2 refers: “Skills Development Expenditure on bursaries for ‘Black’ Students at Higher Education Institutions”.   Based on prior behaviour, this principle results in organisatio

The Department of Trade, Industry and Competition ( the dtic ) provides Sworn Affidavit templates  for EMEs and relevant QSEs with at least 51% Black Ownership or more under the Amended General B-BBEE Codes of Good Practice. These Sworn Affidavits address all the information necessary for a B-BBEE Verification. However, as per Statement 000  of the Amended General B-BBEE Codes of Good Practice, only a Sworn Affidavit is required, so if a personalised Sworn Affidavit that cont

Many may not be familiar with the formal definition of a Black New Entrant as it only features under the Ownership Scorecard.   As per Schedule 1 of the Amended General B-BBEE Codes of Good Practice , “Black New Entrants” means:   Black participants who hold rights of ownership in a Measured Entity and who, before holding the Equity Instrument in the Measured Entity, have not held equity instruments in any Entity which has a total value of more than R50,000,000.00 measured us

Statistics South Africa is the source used to determine the Net Profit After Tax (NPAT) for calculating the targets for Enterprise Development, Supplier Development and Socio-Economic Development. The latest statistics  were published during September 2025. The statistics in this version will be for the   2 nd  quarter of 2025.   Any B-BBEE Verification from hereon would most commonly apply the latest Industry Norms  published by Statistics South Africa. For example, if a B-B

The following rules apply when calculating Mandated Investments for under Statement 100 of the Amended General B-BBEE Codes of Good...

The SANAS Website  publishes information on all accredited B-BBEE Rating Agencies, which, apart from the contact details, includes:   o  ...