B-BBEE SECTOR CODES
All active sector codes and affidavits.
Explore a centralised hub for up-to-date sector codes, meticulously curated through regular updates from authoritative publications, complete with affidavits and explanatory notes. Navigating compliance complexities can be daunting, which is precisely why we're here. Reach out with your queries, and let us simplify the process for you.
AGRICULTURE
The main aim of the amended AgriBEE Sector Code is to promote and enable Broad-Based Black Economic Empowerment in the agricultural industry by introducing measures that ensure the inclusion of Black South Africans at all stages of agricultural operations.
CODES
AFFIDAVIT
The B-BBEE Affidavit caters to smaller entities and was implemented to motivate large entities to procure from smaller businesses. Without negatively effecting their Procurement element.
The criteria are as follows:
Any EME, or, QSE's that are at least 51% Black Owned and fall within the Agriculture sector may make use of this affidavit.
EME's
With less than 51% Black Ownership, Level 4
At least 51% Black Ownership, Level 2
100% Black Ownership, Level 1
QSE's
At least 51% Black Ownership, Level 2
100% Black Ownership, Level 1
Please note that the Affidavit is only valid if commissioned and the date of expiry will be based on the date the document was commissioned.
CONSTRUCTION
The Amended Construction Sector Code offers a blueprint for the Construction Sector to tackle B-BBEE, boost the capabilities of black contractors, industry professionals and the wider community, and improve the sector efficiency with world-class standards.
CODES
Government Gazette No. 41287
AFFIDAVIT
The B-BBEE Affidavit caters to smaller entities and was implemented to motivate large entities to procure from smaller businesses.
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The criteria are as follows:
Any EME that falls within the Construction sector may make use of these affidavits.
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EME's
With less than 30% Black Ownership, Level 5
At least 30% Black Ownership, Level 4
At least 51% Black Ownership, Level 2
100% Black Ownership, Level 1
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QSE's
​QSE's qualify for a level enhancement but cannot obtain an affidavit. This means that all QSE's still need to undergo a verification process.
The enhancements are as follows:
At least 51% Black Owned receive an enhancement to Level 2, however, compliance with the priority elements is still applicable.
100% Black Owned, receive an enhancement to Level 1, however, compliance with the priority elements is still applicable.
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Please note that the Affidavit is only valid if commissioned and the date of expiry will be based on the date the document was commissioned.
CODES OF GOOD PRACTISE
The B-BBEE Codes of Good Practice, also known as the Generic Codes. Any Entity that does not fall under any of the other published codes defaults to applying the Generic version.
CODES
AFFIDAVIT
The B-BBEE Affidavit caters to smaller entities and was implemented to motivate large entities to procure from smaller businesses.
The criteria are as follows:
Any EME, or, QSE's that are at least 51% Black Owned and do not fall within any of the other gazetted sectors may make use of this affidavit.
EME's
With less than 51% Black Ownership, Level 4
At least 51% Black Ownership, Level 2
100% Black Ownership, Level 1
QSE's
At least 51% Black Ownership, Level 2
100% Black Ownership, Level 1
Please note that the Affidavit is only valid if commissioned and the date of expiry will be based on the date the document was commissioned.
DEFENCE
The Defense Sector Guidelines offer the South African defense industry a structure for incorporating B-BBEE (Broad-Based Black Economic Empowerment) and effectively implementing national policy goals outlined in various documents, including the National Development Plan, the Defense Industrial Participation Program, the National Industrial Policy Framework, the Industrial Policy Action Plan, the Black Industrialists Policy, and the South African Defense Review of 2015.
CODES
Government Gazette No. 42391
AFFIDAVIT
The B-BBEE Affidavit caters to smaller entities and was implemented to motivate large entities to procure from smaller businesses.
The criteria are as follows:
Any EME, or, QSE's that are at least 51% Black Owned and fall within the Defense sector may make use of this affidavit.
EME's
With less than 51% Black Ownership, Level 4
At least 51% Black Ownership, Level 2
100% Black Ownership, Level 1
QSE's
At least 51% Black Ownership, Level 2
100% Black Ownership, Level 1
Please note that the Affidavit is only valid if commissioned and the date of expiry will be based on the date the document was commissioned.
FINANCE
The Charter and scorecard for the Financial Sector outline the guiding principles of B-BBEE (Broad-Based Black Economic Empowerment) within the context of the financial sector. It defines the criteria and methodology for assessing compliance based on the Amended Financial Sector Charter (FSC).
CODES
AFFIDAVIT
The B-BBEE Affidavit caters to smaller entities and was implemented to motivate large entities to procure from smaller businesses.
The criteria are as follows:
Any EME, or, QSE's that are at least 50% Black Owned (where there is an existing equity deal in place) or at least 51% Black Owned (for all deals concluded after the commencement date of this amended FSC, 1 December 2017) and fall within the Finance sector may make use of this affidavit.
EME's
With less than 50% or 51% Black Ownership, Level 4
At least 51% Black Ownership, Level 2
100% Black Ownership, Level 1
QSE's
50% or at least 51% Black Ownership, Level 2
100% Black Ownership, Level 1
Please note that the Affidavit is only valid if commissioned and the date of expiry will be based on the date the document was commissioned.
FORESTRY
The Guidelines for the Forestry Sector pertain to all businesses engaged in commercial forestry and initial wood product processing, encompassing sectors such as Growers, Contracting, Fibre, Sawmilling, Pole, and Charcoal. Its purpose is to establish a structure that promotes the equitable distribution of economic opportunities and advantages within the Forest Sector, particularly targeting historically marginalized black communities.
CODES
AFFIDAVIT
The B-BBEE Affidavit caters to smaller entities and was implemented to motivate large entities to procure from smaller businesses.
The criteria are as follows:
Any EME, or, QSE's that are at least 51% Black Owned and fall within the Forestry sector may make use of this affidavit.
EME's
With less than 51% Black Ownership, Level 4
At least 51% Black Ownership, Level 2
100% Black Ownership, Level 1
QSE's
At least 51% Black Ownership, Level 2
100% Black Ownership, Level 1
Please note that the Affidavit is only valid if commissioned and the date of expiry will be based on the date the document was commissioned.
ICT
The ICT Sector Guidelines aim to address historical disparities caused by the exclusion of black individuals from substantial involvement in the information, communication, and technology sectors. They establish goals of black ownership, skills development, and enterprise supplier development spessifically focused on the ICT sector to promote greater inclusivity and participation.
CODES
AFFIDAVIT
The B-BBEE Affidavit caters to smaller entities and was implemented to motivate large entities to procure from smaller businesses.
The criteria are as follows:
Any EME, or, QSE's that are at least 51% Black Owned and fall within the ICT sector may make use of this affidavit.
EME's
With less than 51% Black Ownership, Level 4
At least 51% Black Ownership, Level 2
100% Black Ownership, Level 1
QSE's
At least 51% Black Ownership, Level 2
100% Black Ownership, Level 1
Please note that the Affidavit is only valid if commissioned and the date of expiry will be based on the date the document was commissioned.
MAC
The Marketing, Advertising, and Communication (MAC) Sector Guidelines define the objectives for promoting meaningful involvement of black South Africans in areas such as ownership, management control, skills development, enterprise and supplier development, and socio-economic contributions.
CODES
AFFIDAVIT
The B-BBEE Affidavit caters to smaller entities and was implemented to motivate large entities to procure from smaller businesses.
The criteria are as follows:
Any EME, or, QSE's that are at least 51% Black Owned and fall within the MAC sector may make use of this affidavit.
EME's
With less than 51% Black Ownership, Level 4
At least 51% Black Ownership, Level 2
100% Black Ownership, Level 1
QSE's
At least 51% Black Ownership, Level 2
100% Black Ownership, Level 1
Please note that the Affidavit is only valid if commissioned and the date of expiry will be based on the date the document was commissioned.
PROPERTY
The Guidelines for the Property Sector offer a framework for property developers, owners, property managers, estate agents, brokers, and valuers to facilitate black economic empowerment within South Africa's property industry.
CODES
AFFIDAVIT
The B-BBEE Affidavit caters to smaller entities and was implemented to motivate large entities to procure from smaller businesses.
The criteria are as follows:
Any EME, or, QSE's that are at least 51% Black Owned and fall within the Property sector may make use of this affidavit.
EME's (Asset Based)
With less than 51% Black Ownership, Level 4
At least 51% Black Ownership, Level 2
100% Black Ownership, Level 1
EME's (Service Based)
With less than 51% Black Ownership, Level 4
At least 51% Black Ownership, Level 2
100% Black Ownership, Level 1
EME's (Estate Agencies/Broking/Valuation Companies)
With less than 51% Black Ownership, Level 4
At least 51% Black Ownership, Level 2
100% Black Ownership, Level 1
QSE's (Asset Based)
With at least 51% Black Ownership, Level 2
100% Black Ownership, level 1
QSE's (Service Based)
With at least 51% Black Ownership, Level 2
100% Black Ownership, level 1
QSE's (Estate Agencies/Broking/Valuation Companies)
With at least 51% Black Ownership, Level 2
100% Black Ownership, level 1
Please note that the Affidavit is only valid if commissioned and the date of expiry will be based on the date the document was commissioned.
TOURISM
The Revised Tourism Sector Guidelines aim to promote the goals of Broad-Based Black Economic Empowerment (B-BBEE) within South Africa's tourism industry. This encompasses enterprises involved in providing accommodation, hospitality, and travel-related services.
CODES
AFFIDAVIT
The B-BBEE Affidavit caters to smaller entities and was implemented to motivate large entities to procure from smaller businesses.
The criteria are as follows:
Any EME, or, QSE's that are at least 51% Black Owned and fall within the Tourism sector may make use of this affidavit.
EME's
With less than 51% Black Ownership, Level 4
At least 51% Black Ownership, Level 2
100% Black Ownership, Level 1
QSE's
At least 51% Black Ownership, Level 2
100% Black Ownership, Level 1
Please note that the Affidavit is only valid if commissioned and the date of expiry will be based on the date the document was commissioned.
TRANSPORT
The Transport Sector Guidelines for B-BBEE strive to foster a high-quality, integrated transportation sector encompassing land, air, and sea. The primary objective is to facilitate the entry of Black individuals into the industry, thereby stimulating economic growth, development, and trade.
CODES
Government Gazette No. 32511
AFFIDAVIT
The implementation of the Transport Sector Charter gazette no 32511 became effective on August 21, 2009, and it is still based on the previous Codes of Good Practice. It's important to note that while the general codes form the basis of each sector charter, sector-specific requirements are included in the sector charters to promote transformation within the relevant sectors.
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Here are some concise guidelines pertaining to the Transport Sector Charter:
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The Transport Sector Charter comprises of eight sub-sectors:
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1.Bus Commuter and Coach Services Sub-Sector Code
2.Taxi Industry Sub-Sector Code
3.Road Freight Sub-Sector Code
4.Public Sub-Sector Code - Transport
5.Maritime Transport and Services Industry Sub-Sector Code
6.Forwarding and Clearing Sub-Sector Code
7.Rail Sub-Sector Code
8.Domestic Aviation Sub-Sector Code
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The classification thresholds for the Transport Sector based on annual turnover are as follows:
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Exempt Micro Enterprise (EME) - Annual turnover not exceeding R5 million
Qualified Small Enterprise (QSE) - Annual turnover greater than R5 million but not exceeding R35 million
Large Enterprise (Generic) - Annual turnover exceeding R35 million
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It's important to note that no affidavits are required for the Transport Sector. If your organization falls under the EME category with an annual turnover not exceeding R5 million, you will automatically qualify for certain levels. However, the rules differ slightly when considering the "old" codes. EMEs have the option to either obtain a letter from their accounting officer confirming their annual turnover and black shareholding or undergo verification with a SANAS accredited verification agency to receive an EME certificate.
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EME Levels:
EMEs in the Transport sector with a black shareholding exceeding 50%, Level 3
EMEs in the Transport sector with a black shareholding of 50% or less, Level 4
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If an EME wishes to increase their level, they can choose to undergo verification as a QSE and be assessed according to the QSE scorecard. Please note that EMEs do not have Level 1 or Level 2 unless they pursue a QSE verification.
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QSE Requirements:
No affidavits are required for QSEs in the Transport Sector. QSEs must select four out of the following seven elements to be evaluated on:
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Ownership
Management Control
Employment Equity
Skills Development
Preferential Procurement
Enterprise Development
Socio-Economic Development
Y.E.S. INNITIATIVE
YES is a collaborative initiative driven by businesses, aiming to discover pioneering approaches through innovation and adherence to technological excellence. Its primary goal is to revitalize the economy and provide young individuals with a meaningful opportunity to enter the workforce.
CODES
Government Gazette No. 41866
NOTES
Companies can promptly begin implementing the following measures:
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The previous requirement of allocating 2.5% of the leviable amount for Skills Development bursary spend is no longer mandatory, which makes the Youth Employment Service (Y.E.S.) more affordable and feasible.
By meeting the youth employment target and ensuring a 2.5% absorption rate, companies can enhance their Broad-Based Black Economic Empowerment (BEE) recognition level by one level.
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Companies can further elevate their BEE recognition level by one level and gain three additional points if they achieve 1.5 times the youth employment target and maintain a 5% absorption rate.
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Doubling the youth employment target and maintaining a 5% absorption rate allows companies to increase their BEE recognition level by two levels.
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The youth employment target is calculated based on the higher of the following criteria:
1.5% of the total headcount,
1.5% of the Net Profit After Tax (NPAT) divided by R55,000,
or as determined by a table based on revenue.
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Eligible participants must be between the ages of 18 and 35 and meet the definition of Black people, including South African Coloured, Indian, and African individuals.
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Companies are required to maintain or improve their previous year's BEE rating.
Existing employees cannot be replaced by participants in the Y.E.S. program.
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If measured entities are unable to create a sufficient number of new jobs to meet their targets, they have the option to sponsor new jobs in Exempted Micro Enterprises (EMEs) or Qualifying Small Enterprises (QSEs).
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Measured entities can claim up to 50% of their informal skills development spend on Y.E.S. employees as Informal Training under the Skills Development framework.
