Who does B-BBEE apply to?

In terms of the Broad-Based Black Economic Empowerment (B-BBEE) Act 53 (2003) and the Codes of Good Practice, all enterprises in South Africa are divided into one of three categories:

• EME (Exempt Micro Enterprises) with an annual turnover of less than R 10 million. 

These companies are automatically assigned a B-BBEE Level as follows: 

Level 1: 100% black shareholding 

Level 2: 51% or more black shareholding

Level 4: Less than 51% black shareholding.

• QSE (Qualifying Small Enterprise) with an annual turnover of between R 10 million and R 50 million. 

These companies are automatically assigned a B-BBEE Level as follows: 

Level 1: 100% black shareholding 

Level 2: 51% or more black shareholding

OR would be required to undergo a B-BBEE audit if less than 51% black shareholding

• Generic – 

Companies with a turnover above R 50 million per annum undergo a B-BBEE audit to determine the applicable level.