How to Complete a BEE Affidavit for your Company

A Broad-Based Black Economic Empowerment (B-BBEE) affidavit is a crucial document for companies operating in South Africa. It allows you to declare your B-BBEE status, which can significantly influence your business opportunities. Many clients or partners require B-BBEE compliance to ensure they are working with certified companies. Therefore, completing your B-BBEE affidavit accurately is essential to maintain compliance and fully leverage the benefits of your B-BBEE status.

Step 1: Verify Eligibility

Before you start, it’s important to confirm that your company qualifies to complete a B-BBEE affidavit. Under the Generic Codes of Good Practice, only companies classified as Exempted Micro Enterprises (EMEs) with an annual turnover of R10 million or less, or Qualifying Small Enterprises (QSEs) with an annual turnover between R10 million and R50 million and 51% or more black ownership, are eligible to complete a B-BBEE affidavit.

Step 2: Choose the Correct Template

Make sure you select the appropriate template for your company’s classification (EME or QSE) and sector. Not all sectors use the same B-BBEE affidavit, as compliance requirements can vary by industry. There are different Sector Codes that you need to be aware of.

Here are some key points regarding different Sector Codes:

• Transport Sector: Companies with a turnover exceeding R5 million must provide a SANAS Accredited B-BBEE certificate instead of an affidavit.
• Property Sector: There are different thresholds for Asset-Based Companies, Service-Based Companies, and Estate Agencies/Broking and Valuation companies.
• Construction Sector: This sector is divided into Contractors and Built Environment Professionals (BEPs). Contractors can only use an affidavit if their turnover is below R3 million, and BEPs if their turnover is below R1.8 million.
• Tourism Sector: Exempted Micro Enterprises (EMEs) with an annual turnover of R5 million or less, or Qualifying Small Enterprises (QSEs) with an annual turnover between R5 million and R45 million and 51% or more black ownership, qualify for an affidavit.

Step 3: Gather the Required Information

To complete the B-BBEE affidavit, you will need the following details:

• Company Details: Your company’s name, registration number, and contact information.
• Turnover: The annual turnover of your company, based on the last financial year-end, not just any 12-month period.
• Ownership: The percentage of black ownership and black female ownership.
• Black Designated Group Ownership: Specify the breakdown of ownership among different groups, such as:some text
  • Black Youth
  • Black People with Disabilities
  • Black Unemployed People
  • Black People living in Rural Areas
  • Black Military Veterans
• Financial Year-End Date: Enter the complete date, for example, 29 February 2024.

Step 4: Signing the Affidavit

The affidavit must be signed by the deponent and commissioned by an independent Commissioner of Oaths who is not part of your organization. Ensure that the signatures of both the deponent and Commissioner are on the same date.

Step 5: Renew Annually

A B-BBEE affidavit is valid for 12 months from the date of issue. Therefore, it needs to be renewed annually. It’s best to complete and submit your affidavit shortly after your company’s financial year-end to ensure the financial information is up-to-date and accurate.

Final Note

Remember, a B-BBEE affidavit that is incorrectly completed or not based on the correct Sector Codes is invalid and cannot be used for B-BBEE verification.

Engaging with a B-BBEE consultant can help you determine whether you qualify for a B-BBEE affidavit and guide you if you need to provide a SANAS Accredited B-BBEE certificate.

For more information or assistance, contact Elevate Advisory Partners at info@elevateadvisory.co.za.