Many small businesses pay for a B-BBEE verification they do not need. If your turnover is below the threshold, a sworn affidavit does the same job for free.
Exempted Micro Enterprises
Businesses below the EME turnover threshold do not require a verification certificate from a rated agency. A sworn affidavit confirming turnover and black ownership is sufficient.
The affidavit is a standard template, commissioned by a Commissioner of Oaths. SAPS will commission it free of charge.
Qualifying Small Enterprises
Above the EME threshold, the position changes. QSEs that are at least 51 percent black owned may also use a sworn affidavit. Others require verification by an accredited agency.
Why it matters for tenders
B-BBEE affects your preference points under the Preferential Procurement Regulations, claimed on SBD 6.1. On a competitive tender, preference points frequently decide the award.
Even where B-BBEE is not compulsory, bidding without it means competing at a scoring disadvantage.
A sworn affidavit is generally valid for twelve months. An expired affidavit is treated as no affidavit. Diarise it.
Common mistakes
- Paying for verification when an affidavit would suffice
- Using an outdated affidavit template
- Turnover stated on the affidavit not matching financial records
- Letting it lapse and only discovering at bid submission
Turnover thresholds and codes change. Confirm the current position with the dtic or a verification agency before relying on an affidavit for a significant bid.
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General information, not procurement or legal advice. Requirements vary by tender and by organ of state. Always read the specific tender document.