Daily, during the procurement process, organisations are purchasing across sectors, whether they are paying for hotel accommodation, professional fees or other goods and services that support the delivery of their business offering. Similarly, an organisation measured on a specific B-BBEE Sector Code of Good Practice may make purchases from suppliers measured on other B-BBEE Sector Codes of Good Practice.   In choosing a Supplier  that is measured outside the B-BBEE Sector Co

Based on Statement 300 of the General Amended B-BBEE Codes of Good Practice , an organisation can only claim Skills Development Expenditure for Learnerships if an organisation incurred such an expense within their financial year.   Evidence for a Learnership for a B-BBEE Verification under the Skills Development element include, however, are not limited to:   A signed Learnership Agreement; Proof of the expenditure incurred by providing invoices and proof of payment; A certif

Clause 2.4.2 of Statement 400 of the Amended General B-BBEE Codes of Good Practice  allocates Bonus Points for creating one or more jobs as a direct result of a Supplier Development or Enterprise Development  intervention.   The necessary evidence varies between B-BBEE Rating Agencies. Generally, however, a letter confirming job creation from the Beneficiary will serve as such evidence or a Signed Employee contract. The letter of confirmation must affirm that the intervention

The most significant risk to an organisation meeting its Preferential Procurement targets is fraudulent B-BBEE Statuses. They not only go against the spirit of B-BBEE, but they put an organisation at risk, as fraudulent B-BBEE Credentials generally only reveal themselves at the time of an organisation’s B-BBEE Verification.   The B-BBEE Commission's website contains a List of known Fraudulent / Invalid B-BBEE Credentials currently in circulation.   If any Members have suspic

At the time of a B-BBEE Verification, many organisations fail to produce updated B-BBEE Statuses  from their suppliers especially those who are EMEs and QSEs with Enhanced Recognition. During a B-BBEE Verification, a B-BBEE Rating Agency will generally consider:   Any B-BBEE status that is valid within the Measurement Period or thereafter; Most recent valid B-BBEE Status; and A B-BBEE status that is valid for at least one day in the Measurement Period due to differing Financi

A B-BBEE Verification  is based on a sampling of evidence and an element of risk. In other words, the process of analysing less than 100% of the evidence supplied. The procedure provides a Verification Analyst with a reasonable basis on which to conclude that all evidence provided is true and accurate.   However, posing a challenge is a Learnership   claim where the Learner is no longer employed. If that particular Learner is chosen as part of the sample, the B-BBEE Rating Ag

The most critical element of an Enterprise Development Loan is that it is a loan and not a grant disguised as one. An organisation must record a loan in their Financial Statements to confirm its origin. The following is a non-exhaustive list of evidence necessary for a B-BBEE Rating Agency at the time of a B-BBEE Verification: Signed Loan Agreement including the type of loan and the terms of repayment; Proof of the valid B-BBEE status of the Beneficiary; Evidence that an org

At the time of B-BBEE Verification , a Measured Entity needs to produce all relevant evidence or documentation to substantiate their B-BBEE claims. From a Measured Entity perspective, it is often misunderstood that confidential documentation cannot form a part of the B-BBEE Verification whereas a B-BBEE Rating Agency would require this based on the procedures that they need to follow. Reference is made to clause 2.6 under Statement 000 of the Amended General B-BBEE Codes of G

The following rules apply when calculating Mandated Investments for under Statement 100 of the Amended General B-BBEE Codes of Good Practice :   "Mandated Investments means any investments made by or through any third party regulated by legislation on behalf of the actual owner of the funds, pursuant to a mandate given by the owner to a third party, which mandate is governed by that legislation. Some examples of domestic mandated investments and the portions of those investme

The SANAS Website  publishes information on all accredited B-BBEE Rating Agencies, which, apart from the contact details, includes:   o   The unique SANAS accreditation number; o   The date of SANAS accreditation and the expiry; o   The status of accreditation, which could include one of the following: Accredited | A B-BBEE Rating agency has successfully passed the SANAS accreditation process and applied to retain its status as a SANAS Accredited B-BBEE Rating Agency. Expired

From time to time, the South African National Accreditation System (SANAS) publishes a list of B-BBEE Rating Agencies   that no longer have SANAS accreditation due to it being withdrawn voluntary or involuntary, or due to its expiry. The core aim of publishing the list is to assist those receiving B-BBEE Certificates in identifying invalid credentials.   This list will further assist B-BBEE Rating Agencies when verifying the element of Enterprise and Supplier Development. It

Based on the recent Draft Amendments to Statement 400 of the General B-BBEE Codes of Good Practice, the Introduction of a Needs Analysis for Enterprise & Supplier Development initiatives are very much welcomed.   Clause 4.15 of the Draft Amendments to Statement 400 of the General B-BBEE Codes of Good Practice states the following:   Measured Entities who selects to comply with Enterprise Development and Supplier Development as well as those partnering with the Transformation

Staying competitive and innovative in today’s evolving business landscape demands more than just a solid product or service. It requires an empowered and capable workforce. Skills Development, the proactive investment in employee growth, has become an essential component of a business’s long-term strategy. While this often aligns with Broad-Based Black Economic Empowerment (B-BBEE) compliance, the benefits of Skills Development go far beyond regulatory requirements. Enhancing

The 5 Bonus Points for Skills Development in exchange for meeting Absorption targets can meaningfully impact an organisation’s overall B-BBEE Scorecard. At a B-BBEE Verification, an organisation will be measured against c lause 2.1.3 of Statement 300   of the Amended General B-BBEE Codes of Good Practice , which states:   "Number of Black People absorbed by the Measured and Industry Entity at the end of the Internship, Learnership and Apprenticeship programme under Paragraph

The Employment and Labour Minister recently announced an increase in the National Minimum Wage (NMW) to R30,23  per hour as of 01 March 2026. The increment aligns with the NMW Act of 2018 . The policy framework of this Act is the floor, a level below which no employee should be paid.   The Act dictates that it is illegal and unfair labour practice for an employer to unilaterally alter an employee's working hours or other Conditions of Employment due to the wage adjustment. No

The Drafts are not merely technical changes, they reflect a policy direction with practical implications for business transformation, compliance strategy, and economic participation. Some of the major areas that have been introduced are as follows:   Introduction of a Transformation Fund   A major proposal is the establishment of a Transformation Fund as an alternative compliance route to traditional Enterprise & Supplier Development (ESD) spend. Businesses could contribute a

The author or deponent of a Sworn Affidavit must be a duly represented registered Director / Owner / Shareholder / Member etc. of an organisation as per company documentation. Where an organisation has foreign shareholders, the same principle applies. A Sworn Affidavit is invalid if anyone other than duly represented individuals function as a deponent.   Certificate Collection Services   are available to assist with identifying valid and invalid Sworn Affidavits.

For most SETAs, the deadline for submitting Workplace Skills Plans (WSPs) and Annual Training Reports (ATRs) is 30th April 2026. Where organisations must submit these reports to their relevant SETA, they should obtain points under the Skills Development element.   As Skills Development is an identified Priority Element, not submitting an ATR and WSP could trigger the Discounting Principle, which will impact an organisation’s overall score.   The information contained in the W

Whilst making a financial contribution to an Enterprise Development or Supplier Development Beneficiary is deemed a contribution, it does not always constitute a sustainable claim. A claim for each of these sub-elements needs evidence that demonstrates an organisation’s intervention has contributed to growth, sustainability, as well as operational and financial independence.   The monetary route is one contribution option. However, other avenues are contributing an asset or u

The concept of “Black New Entrants” is found under the Ownership scorecard whereby the Amended General B-BBEE Codes of Good Practice allows for Two Points to be scored based on a 2% Compliance Target.   The definition contained under Schedule 1 of the Amended General B-BBEE Codes of Good Practice  defines “Black New Entrants” as “ Black participants who hold rights of ownership in a Measured Entity and who, before holding the Equity Instrument in the Measured Entity, have not

South Africa’s greatest economic challenge is not a lack of talent or entrepreneurial spirit,  it is a lack of access. Enterprise & Supplier Development (ESD) directly addresses this gap. When implemented with accountability and long-term commitment, it changes the structure of the economy by broadening ownership, deepening industrial participation and creating pathways for sustainable Black Industrialists and Suppliers. This is how B-BBEE Transformation moves from rhetoric t

Although entering into an Enterprise or Supplier Development loan contract is generally done with the best intentions, some loans issued will inevitably be defaulted on or, in the worst case, a Beneficiary will refuse to repay it. When giving a loan, an organisation has the full rights of recovery; however, this has to be clear in the terms and conditions. First and foremost, a loan must take the form of a debt instrument; thus, it must never be a grant disguised as a loan.  

A B-BBEE Code of Good Practice is a framework of measurement on a Measured Entity scores points to achieve a specific B-BBEE Status Level. It consists of all principles, calculations, and methodologies on how this is executed.   As per Clause 3 of Statement 000 of the Amended General B-BBEE Codes of Good Practice , the following is stated:   3.      APPLICATION OF THE CODES 3.1    The   following Entities are measurable under the Codes:   3.1.1       all Organs of State and P

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 December 2025. The statistics in this version will be for the   3 rd  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-BB

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  ...

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...