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B-BBEE for Your Business: Certificates or Affidavits?

Nicole on 1 July 2024
B-BBEE for Your Business: Certificates or Affidavits?

If you’re a business owner in South Africa, you’ve probably heard of B-BBEE (Broad-Based Black Economic Empowerment).

It's all about creating a more level playing field by giving Black South Africans a bigger role in businesses like yours. But when it comes to proving your own business’ B-BBEE status, things can get a little confusing.

Do you go for a certificate or an affidavit?

How do you even get it done?

We get it. It’s a LOT, but no need to stress – we'll sort it out together!

Certificates vs. Affidavits

“What's the Difference?”

B-BBEE Certificate:

With a certificate, an accredited agency gives your business a good once-over based on B-BBEE rules.

They look at stuff like ownership, who's in charge, and how you're training your team.

You get a score (higher = better), a breakdown of your strengths and weaknesses, and a B-BBEE level (Level 1 being the best).

This level shows how much progress you've made towards transformation, which can impress potential partners who value B-BBEE.

It costs a bit more than an affidavit, but it's the gold standard for B-BBEE proof in SA.

B-BBEE Affidavit:

This is a self-declaration, kind of like a sworn statement saying you meet the B-BBEE requirements.

It's the simpler and free option, but there's a catch: only certain businesses can use them – these are smaller businesses with a yearly income under R10 million, or some qualifying businesses with Black ownership.

Affidavits are usually valid for a year, so you'll need to renew them annually to stay compliant.

“So, which one do I choose?”

Let's break it down:

  • Exempted Micro Enterprises (EMEs): Turnover under R10 million? Go for an Affidavit.
  • Qualifying Small Enterprises (QSEs): Turnover between R10 million and R50 million with at least 51% Black ownership? An affidavit could work for you, otherwise, you'll need a certificate – you can choose.
  • Large Enterprises: Turnover over R50 million? You’re going to need a B-BBEE certificate.

“Why does B-BBEE Matter?”

There are some pretty awesome reasons to get your B-BBEE sorted:

  • Contracts: Many government deals and private companies require proof of B-BBEE compliance.
  • New Opportunities: Being B-BBEE compliant shows you're committed to a fairer economy, and this can attract new customers.
  • Business Reputation: It shows you're all about inclusivity, which makes your business look great.

Understanding certificates and affidavits is key to B-BBEE compliance and growing your South African business. For smaller businesses, affidavits are a simpler solution. For larger ones, certificates provide a detailed picture. No matter your size, having the right documentation unlocks opportunities and keeps you competitive.

Ready to get started?

We’ve made you a nifty online tool to help calculate your B-BBEE level and generate a FREE B-BBEE affidavit for you.

Have more questions?

Feel free to reach out to our Support Team – we’re always more than happy to help!