If your small business has ever been asked for a "B-BBEE certificate" by a customer or a tender, you've probably wondered: do I really need to pay a verification agency for an audit, or is there a simpler option? For most small businesses, the answer is the B-BBEE EME affidavit: a sworn statement you sign before a Commissioner of Oaths, at no statutory cost. This article explains how it works, who qualifies, and when you actually do need a full verification certificate.
The two-tier system for small businesses
The B-BBEE Codes recognise that a 1-person consultancy and a 500-employee corporation can't be assessed with the same rigour. The codes therefore split SA businesses into three categories by annual turnover:
- EME (Exempt Micro Enterprise): turnover under R10 million per year
- QSE (Qualifying Small Enterprise): turnover from R10 million to R50 million per year
- Generic (Large Enterprise): turnover above R50 million per year
EMEs and QSEs are eligible to use a B-BBEE affidavit instead of a full verification certificate. Generic enterprises must obtain a verified certificate.
What the EME affidavit actually says
A B-BBEE EME affidavit is a sworn statement, signed by the business owner before a Commissioner of Oaths, that confirms:
- The business's annual turnover is below R10 million
- The percentage of black ownership, black female ownership and black designated group ownership, with the designated group figure broken down into black youth, black people with disabilities, unemployed black people, black people living in rural and underdeveloped areas, and black military veterans
- The B-BBEE level the business claims (which is determined by the black ownership percentage, see table below)
- The procurement recognition the business is entitled to claim
The affidavit must use the sworn affidavit template designed by the Department of Trade, Industry and Competition, published on the dtic and CIPC websites. Once signed before a Commissioner of Oaths it stands as the enterprise's B-BBEE compliance evidence, and procurement teams and tender boards generally accept it in place of a verification certificate. SARS does not use it: tax compliance status is a separate SARS process that has nothing to do with B-BBEE.
How EME levels are calculated
For EMEs, your B-BBEE level is determined entirely by black ownership percentage. The table is straightforward:
| Black Ownership | B-BBEE Level | Procurement Recognition |
|---|---|---|
| 100% black-owned | Level 1 | 135% |
| 51 to 99% black-owned | Level 2 | 125% |
| 30 to 50% black-owned | Level 4 | 100% |
| Below 30% black-owned (or 0%) | Level 4 | 100% |
That last row is the surprise to many people: even a 0% black-owned EME automatically claims Level 4 status. This is by design: the system recognises that EMEs are too small to meaningfully compete on the broader B-BBEE elements (skills development, supplier development, etc.) and gives them a default minimum level.
Translation: every EME automatically gets at least a Level 4 certificate, just by being an EME. The affidavit confirms it. There is no scenario where an EME has "no B-BBEE certificate at all".
What the QSE affidavit covers
For Qualifying Small Enterprises (turnover R10m to R50m), the affidavit option also exists but with one restriction: only QSEs that are 51%+ black-owned can use the affidavit-only route. QSEs below 51% black-owned must obtain a verified certificate.
The 51%-black-owned QSE affidavit confirms turnover, ownership percentage, and the resulting level (typically Level 1 for 100% black-owned, Level 2 for 51 to 99%).
Below 51% black ownership, a QSE must do a full verification covering ownership, management control, skills development, enterprise and supplier development, and socio-economic development. Verification agencies set their own fees and there is no published tariff, so get written quotes from at least two SANAS-accredited agencies before you plan around a figure.
When the affidavit is sufficient
The affidavit is fully accepted in the following scenarios:
- Public sector tenders that recognise EMEs/QSEs (which is most of them)
- Corporate procurement systems requiring B-BBEE evidence from suppliers (most large corporates)
- Industry council prequalification where B-BBEE is a factor
- Government department supplier registration (Central Supplier Database, Treasury)
- Most enterprise development and supplier development funding programmes
In short: the affidavit works for the overwhelming majority of B-BBEE use cases that small businesses encounter.
When you actually need a verified certificate
A verified certificate is required in three scenarios:
Above-threshold turnover. If your turnover exceeds R10m (EME threshold) and you're not 51%+ black-owned (so the QSE affidavit isn't available either), you need verification.
Specific tender requirements. Some tenders explicitly require a verified certificate from a SANAS-accredited verification agency, even from EMEs. Read the tender requirements carefully. The clause is usually titled "B-BBEE certification requirements" and either accepts or rejects affidavits.
Customer-specific demands. Some large corporate customers have internal procurement policies that require verified certificates from all suppliers regardless of size. This is unusual but does happen. Check before you assume the affidavit is sufficient.
If any of these apply, get written quotes from SANAS-accredited verification agencies before you plan around a cost. We don't do verification ourselves (it requires SANAS accreditation that we don't hold), but we can refer you to verification agencies if needed.
How to get the affidavit
The process is straightforward.
Step 1: Determine your turnover. Use your latest annual financial statements or management accounts, and note the financial year-end date, because the template asks for it. Under Statement 000 of the Amended Codes a start-up enterprise, meaning one that has been in operation for less than a year, is ordinarily regarded as an EME, so a brand-new company does not need a turnover history or a forecast. Tendering is the exception: a start-up bidding for a contract worth more than R10 million but less than R50 million must submit a QSE scorecard, and for contracts of R50 million or more a Generic scorecard, prepared on annualised data.
Step 2: Determine your ownership structure. Confirm the percentage of shares held by black people. The B-BBEE Act defines black people as Africans, Coloureds and Indians who are South African citizens by birth or descent, or who became citizens by naturalisation before 27 April 1994, or on or after that date if they would have been entitled to naturalise before it. A 2008 High Court order extended the definition to Chinese South Africans who meet the same citizenship requirements.
Step 3: Determine your B-BBEE level. From the ownership table above.
Step 4: Sign the affidavit before a Commissioner of Oaths. Use the dtic template for your category. All members of the South African Police Service are commissioners of oaths ex officio, so any police station can commission it, and attorneys and magistrates' offices are the other common options. A commissioner of oaths may not charge a fee for administering the oath. The commissioner may not have an interest in the matter, so a fellow director or an employee of your own business cannot commission your affidavit.
Step 5: Give the commissioned affidavit to anyone who asks. Customers, tender boards and government departments. Read each tender or supplier onboarding document for its own B-BBEE clause, because the requirement is set by the buyer and some buyers insist on a verified certificate.
The affidavit is valid for 12 months from the date of signing, after which you re-sign with updated turnover figures.
How we handle it
B-BBEE EME affidavit guidance is included with our company registration service at R880. The process: you tell us your turnover and ownership structure, we help you prepare the affidavit in the prescribed format with your details, and you sign it before a Commissioner of Oaths near you.
For PTY (Ltd) registrations through us, EME affidavit guidance is included in the R880 standard registration package. You still sign the affidavit yourself before a Commissioner of Oaths. We add it because every newly-registered company is going to need one within their first year, and including it removes a step from your day.
Common mistakes
Claiming a higher level than your ownership justifies. Levels 1 and 2 require black ownership above thresholds. Claiming Level 1 with no black shareholders is fraud. Don't do this. Get the level right and accept whatever it works out to be. Level 4 is fine for most procurement purposes.
Using an outdated affidavit. Affidavits are valid for 12 months. Procurement teams check the date. An expired affidavit gets your tender disqualified.
Confusing "fronting" arrangements with genuine ownership. Adding a black shareholder on paper without giving them genuine economic and management rights is fronting. Fronting is an offence under section 13O of the B-BBEE Act. On conviction, an individual faces a fine or imprisonment of up to 10 years, or both. Where the convicted person is not a natural person, the fine may be up to 10 per cent of the enterprise's annual turnover. Section 13P then bars a convicted person from contracting or transacting any business with an organ of state or public entity for 10 years, and places them on the National Treasury register of tender defaulters. The affidavit you sign confirms the ownership structure is genuine. If it isn't, you're committing perjury on top of fronting.
Assuming the affidavit replaces other compliance. B-BBEE compliance is one thing. SARS tax compliance, CIPC annual returns, COIDA registration, sector-specific licences, and other statutory requirements are separate. The affidavit confirms B-BBEE; it doesn't certify anything else.
The broader B-BBEE picture
For most small businesses, the affidavit is everything they need. As you grow toward and through the EME threshold, the calculus changes: above R10m turnover with non-black-majority ownership, you need to think about the broader B-BBEE elements (skills development, enterprise and supplier development, socio-economic development) and the costs and benefits of moving up the levels.
That's a longer conversation than this article. For now: if you're a small business with under R10m turnover, get the affidavit, use it, and focus on running your business.
B-BBEE EME affidavit guidance is included with PTY registration at R880. WhatsApp us with your turnover, ownership percentages, and director details and we will help you prepare the affidavit in the prescribed format.