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B-BBEE Certificates and Verification Agencies

stamp_of_approval.jpgIn order for enterprises on the Qualifying Small Enterprise (QSE) level - i.e. with an annual revenue of between R10 and R50 million per annum - to acquire a B-BBEE Certificate, they should be verified by all five elements on the revised BEE Scorecard by a Verification Agency (VA) of their choice. A list of Verification Agencies is available on the South African National Accreditation System (www.sanas.co.za) website.

Exempted Micro Enterprises (EMEs) and start-up businesses - i.e. with an annual revenue of under R10 million - do not need VAs for B-BBEE Certificates, as an auditor’s certificate or similar certificate (template on the SME Toolkit) issued by an accounting officer serves as their B-BBEE Certificate.

As long as the EME template is signed or endorsed by an accounting officer or accountant, it must be accepted as sufficient proof of B-BBEE compliance by all private companies, government departments, public entities and non-governmental organizations operating in the SA economy.

How to become a Verification Agency

In order to bring credibility to the verification process, the dti appointed the South African National Accreditation System (SANAS) to develop accreditation standards for Verification Agencies. The process resulted in the release of the Verification Manual by the dti in July 2008, and the SANAS R47 which together provide the market with guidelines to verification and accreditation. 

So to become a Verification Agency, any enterprise (public and private entities, including auditors, accountants, lawyers, business associations, sector charter councils, consultants etc) must apply to SANAS, in writing, for accreditation as a Verification Agency.

Verification serves the following purpose:

  • To give confidence to all parties that rely upon the score set out in the B-BBBEE verification certificate that the information it contains has been tested for validity and accuracy
  • to provide an assurance of the integrity of the information on which the verification is based

For more information on application for accreditation, please visit the SANAS website or call 012 394-3760.

Equity Equivalent Programmes for multinationals

The Equity Equivalent Programmes (EEs) are programmes designed to enable enterprises to indirectly fulfill the requirements of B-BBEE Ownership.

The B-BBEE Codes of Good Practice require that all entities operating in South Africa make a contribution towards B-BBEE through the sale of shares to black South Africans. However, there are internationally-owned companies whose global practices prevent them from doing this. Such enterprises need to apply to the Minister of Trade and Industry for approval to enter the EE Programmes in order to qualify for Ownership points on the Scorecard.

EE Programmes are expected to contribute towards the achievement of:

  • Enterprise creation and development
  • Foreign direct investment
  • Accelerated empowerment of black rural women and youth 
  • Sustainable growth and development
  • Human development with focus on education and skills development
  • Infrastructure investment with emphasis on developing the country’s research and development infrastructure.

For more information on application for EE Programmes, please visit the dti website www.thedti.co.za or tel: 012 394-1609.

Copyright © 2016 the Department of Trade and Industry.  All rights reserved.

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