EME B-BBEE Verification

EME B-BBEE VERIFICATIONS



Exempt Micro Enterprises (EME's) are classified in the New Codes as entities with an annual turnover of up to R10 million (Kindly note that most sector codes have been aligned with the amended codes of good practice but have not been gazetted yet therefore their threshold may vary from sector to sector)

An Exempted Micro Enterprise is deemed to have a B-BBEE status of level four contributor having a B-BBEE recognition level of 100%. Enhanced B-BBEE recognition for exempted micro enterprises applies based on the company's level of black ownership.

Enhanced B-BBEE recognition as per the Amended Codes is as follows:

Harvest logoAn EME which is 100 % Black Owned qualifies for elevation to a B-BBEE Status level 1 having B-BBEE Procurement recognition of 135%
Harvest logoEME which is at least 51% Black Owned qualifies for elevation to a B-BBEE Status level 2 having B-BBEE Procurement recognition of 125%.

Exempted micro enterprises are also automatically "empowering suppliers". This is a new concept introduced as per the amended codes of good practice with the intention to encourage amongst other things local production/beneficiation. Measured entities will not be able to claim B-BBEE procurement spend from entities that are not "empowering suppliers"

An Exempted Micro Enterprise is only required to obtain a sworn affidavit on an annual basis confirming annual turnover and level of black ownership.

Tenders

In order to qualify as a Start-up Enterprise, the enterprise must provide an independent confirmation of its status in accordance with the amended codes of good practice confirming annual Total Revenue of R10 Million or less and level of black ownership

Despite the above statement, start-up enterprise must submit a QSE Scorecard when tendering for any contract, or seeking any other economic activity covered by section 10 of the Act, with a value higher than R10 Million but less than 50 Million.
For Contracts of R50 Million or more they should submit the Generic scorecard. The preparation of such scorecards must use annualised data.