Understanding BBBEE Levels for Government Tenders

What is BBBEE?

Broad-Based Black Economic Empowerment (BBBEE) is South Africa's legislative framework for transforming the economy. For government tenders, your BBBEE level directly affects your competitiveness.

How BBBEE Affects Tender Scoring

Under the Preferential Procurement Policy Framework Act (PPPFA), tenders are evaluated using a points system:

For tenders up to R50 million (80/20 system)

80 points for price
20 points for BBBEE level

For tenders above R50 million (90/10 system)

90 points for price
10 points for BBBEE level

BBBEE Level Points Allocation

BBBEE Level	Points (80/20)	Points (90/10)
Level 1	20	10
Level 2	18	9
Level 3	14	6
Level 4	12	5
Level 5	8	4
Level 6	6	3
Level 7	4	2
Level 8	2	1
Non-compliant	0	0

Exempted Micro Enterprises (EMEs)

If your annual turnover is R10 million or less, you are classified as an EME and automatically qualify as:

Level 1 if 100% black-owned
Level 2 if 51%+ black-owned
Level 4 for all other EMEs

You only need a sworn affidavit — no costly BBBEE verification required.

Qualifying Small Enterprises (QSEs)

If your turnover is between R10 million and R50 million, you are a QSE and can use the simplified QSE scorecard.

How to Improve Your BBBEE Level

Ownership: Increase black ownership percentage
Management control: Appoint black directors and senior managers
Skills development: Invest in training black employees
Enterprise development: Support black-owned small businesses
Socio-economic development: Contribute to community projects
Preferential procurement: Buy from BBBEE-compliant suppliers

Getting Your BBBEE Certificate

EMEs: Get a sworn affidavit from a commissioner of oaths (free)
QSEs and large enterprises: Use a SANAS-accredited verification agency
Certificates are valid for 12 months from the date of issue