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ENHANCED RECOGNITION FOR QSEs

The Enhanced Recognition framework for Qualifying Small Enterprises (QSEs) that are Black-owned, as outlined in the Amended General B-BBEE Codes of Good Practice, provides specific benefits based on ownership levels. QSEs that are 100% Black-owned qualify for a B-BBEE Level One Contributor status with a recognition level of 135%, while those at least 51% Black-owned qualify for a Level Two Contributor status with a recognition level of 125%.

A QSE that is at least 51% Black-owned qualifies for Enhanced Recognition, which means that a Sworn Affidavit is the only B-BBEE Credential they have to present. Paragraph 5.3 of Statement 000 of the Amended General B-BBEE Codes of Good Practice published in Gazette #42496 makes the following allowance for Enhanced Recognition:

 

5.3 Enhanced B-BBEE recognition level for QSE:

 

5.3.1    Despite paragraph 5.2 above, a QSE which is 100% Black-owned, measured using the flow-through principle, qualifies for elevation to a “B-BBEE Level One Contributor” having a B-BBEE recognition level of 135%.

5.3.2    Despite paragraph 5.2 above, a QSE which is at least 51% Black-owned, measured using the flow-through principle, qualifies for elevation to a “B-BBEE Level Two Contributor” having a B-BBEE recognition level of 125%.

5.3.3    A Black-owned QSE in terms of paragraph 5.3. above, is only required to obtain a sworn affidavit on an annual basis, confirming the following:

5.3.3.1 Annual Total Revenue of between R10 million and R50 million; and

5.3.3.2 Level of Black ownership.

 

Thus, as they have met the Ownership criteria, they are not required to meet the Management Control, Skills Development, Enterprise & Supplier Development or Socio-economic Development targets. 

 

Furthermore, paragraphs 5.4 and 5.5 make the following references:

 

5.4 Despite paragraph 5.3 a Black-owned QSE may be measured in terms of the QSE scorecard should it so choose.

 

5.5 Any misrepresentation in terms of paragraph 5.3 above constitutes a criminal offence as set out in the B-BBEE Act as amended.

 

QSE Services are available to Members to assist with understanding these requirements for QSEs.

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