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  ...

It is fair to surmise that the points earned on Supplier Development, especially since Enterprise & Supplier Development is a Priority...

More than any other element under the Amended General B-BBEE Codes of Good Practice, Enterprise & Supplier Development was carefully...

Statement 000, Clause 7 of the Amended General B-BBEE Codes of Good Practice makes the following references:   “7. Eligibility of Joint...

The rule of thumb in claiming Broad-Based Black Economic Empowerment (B-BBEE) points is to follow the money directly to the end...

Incorporating the Continuing Consequence Principle of the Ownership Scorecard allows organisations to score under the Ownership points...

The Socio-Economic Development element requires an Independent Competent Person (ICP) to present an Independent Competent Person’s Report...

When an organisation uses a Trust as a Special Purpose Vehicle for the Ownership element, points are awarded based on the Beneficiaries...

Bursaries play a critical role in South Africa’s Broad-Based Black Economic Empowerment (B-BBEE) framework, specifically under the Skills...

Early payments apply to Supplier Development Beneficiaries only. Clause 3.7 in Statement 400 of the Amended General B-BBEE Codes of Good...

A High Court Judgement   has been recently released on whether the numerical targets set by the Minister are lawful or not.   The...

The Legal Sector Charter Council recently published a Notice to all Attorneys to participate in a Stakeholder Engagement session.   Part...

The Legal Sector Charter Council recently published Guidance Notice 01 of 2025 .   The purpose of this Guidance Notice  is to provide...

As per Schedule 1 of the Amended General B-BBEE Codes of Good Practice , a “Start-up Enterprise” means a recently formed or incorporated...

As per Schedule 1 of the Amended General B-BBEE Codes of Good Practice , a B-BBEE Controlled and B-BBEE Owned Company is defined as...

Under Statement 300 of the Amended General B-BBEE Codes of Good Practice , clause 6 lists various Legitimate Recognisable Training...

Jan Vermeulen | 19 August 2025 The Information and Communications Technology sector faces unique challenges that may impact companies’...

The B-BBEE Commission has over the years continued to be inundated with requests from various stakeholders to confirm validity of B-BBEE...

In terms of section 13F (3) Broad-Based Black Economic Empowerment Act 53 of 2003 as amended by Act 46 of 2013, the Broad-Based Black...

The Broad-Based Black Economic Empowerment Commission has published Explanatory Notice 01 of 2024 in August 2024.   This Explanatory...

The below Q & A was published on the dtic  Website under the B-BBEE FAQs regarding B-BBEE Sworn Affidavits for EMEs and QSEs with more...

More often than not when organisations enter into a relationship with an Enterprise Development or Supplier Development Beneficiary , it...

Total Measured Procurement Spend (TMPS) forms the basis of the calculation measuring an organisation's Preferential Procurement spend...

Many organisations choose third party facilitators to distribute their Socio-Economic Development (SED) contributions , which B-BBEE...

The Preferential Procurement  element measures the way a Measured Entity procures goods and services from Suppliers. Another key point...

As per Schedule 1 of the Amended General B-BBEE Codes of Good Practice , 51% Black Owned and 51% Black Women Owned is defined as follows:...

Virtual informal learning, otherwise referred to as distance training, has become the norm over the past few years.  Providing evidence...

Intra-Group Procurement Spend is a normal part of spending, especially for groups of vertically connected companies, which in many cases...

The liquidity of an Enterprise Development Beneficiary matters. A long-term Enterprise & Supplier Development Strategy  more often than...

Core to the Net Value calculation is the Graduation Factor formula that awards 8 points on the Ownership scorecard . The time-based...

Q |  Can a B-BBEE Sworn Affidavit be commissioned by a Commissioner of Oaths connected to the deponent that is an EME or QSE with more...

Under the element Socio-Economic Development , there is an emphasis on the concept of the objective of facilitating income generating...

At times, we may find that there are differences between concepts  under the Amended General B-BBEE Codes of Good Practice as well as...

The Measurement of Ownership  for Built Environment Professionals (BEPs) under the Amended Construction B-BBEE Sector Codes of Good...

The Legal Sector Transformation Fund (LSTF)  has been established in terms of Paragraph 37 of the Legal Sector Code (LSC) for the...

Investing in Entrepreneurship in South Africa, particularly within the framework of Broad-Based Black Economic Empowerment (B-BBEE), can...