B-BBEE Codes of Good Practice

The B-BBEE Codes 000 to 500 cover various aspects of a company’s B-BBEE status

Generic Codes of Good Practice

Code
Measurement 
Code
Code 100: Ownership
Measurement 
Evaluates the extent of ownership held by black people in the business, including shares and voting rights.
Code

Code 200: Management Control

Measurement 
Assesses the representation of black individuals in key management positions and decision-making roles within the company.
Code

Code 300: Skills Development

Measurement 
Focuses on the investment in training and development initiatives specifically for black employees, aimed at uplifting their skills and employability.
Code

Code 400: Enterprise and Supplier Development

Measurement 
Encourages companies to support black-owned enterprises through procurement and other business opportunities, fostering the growth of black entrepreneurs.
Code

Code 500: Socio-Economic Development

Measurement 
Measures the contributions made by the business towards community development and welfare projects that benefit black people.
This table provides a brief overview of the Generic Codes.  However, detailed regulations and criteria for each element can be found in the official documentation of the B-BBEE Codes of Good Practice.
Download the B-BBEE Codes of Good Practice

Amended Codes of Good Practice 2013

Amendments to the generic scorecard, in line with updates to the B-BBEE legislation and Codes, were made in 2013.

The most significant change involved consolidating the generic scorecard into five key elements, aligning them with the government's priority programmes. These elements include ownership, management control, skills development, enterprise and supplier development, and socio-economic development.

This restructuring aimed to simplify the B-BBEE assessment process, and enhance the emphasis on critical areas of transformation, namely: ownership; skills development; and enterprise and supplier development.

A major update was also made to the turnover thresholds for Qualifying Small Enterprises (QSEs), Exempted Micro Enterprises (EMEs), and Generic Enterprises (GENs):

  • EME threshold: annual turnover of less than R10 million
  • QSE threshold: annual turnover between R10 million and R50 million
  • GEN threshold: annual turnover exceeding R50 million

EMEs can conduct transactions using an affidavit to verify that they have 51% or more black ownership. QSEs may also utilise an affidavit for verification purposes, provided they meet the requirement of 51% or more black ownership.

Revised Codes of Good Practice 2019

In May 2019, the Department of Trade Industry and Competition (dtic) published the revised Codes of Good Practice, which were to be implemented by November of that same year, six months from the date of publication.

Most notable was a revision to the requirements under the skills development element, particularly those of bursaries. The allocation for spending in this element was divided into bursaries (2.5%) and learnerships (3.5%).

The definition of absorption also changed to include ‘long-term’ employment.

Can I be forced to get a B-BBEE certificate?

There is no legal obligation for privately-owned business to follow B-BBEE policies as mandated by the B-BBEE Act or Codes.

State-owned and public entities, on the other hand, should comply with the legislation. To do this, these entities often approach private organisations that present a high level of B-BBEE compliance, which in turn impacts their own B-BBEE score.

However, there are instances where private organisations may be put under pressure by their own suppliers and partners to have a SANAS-accredited B-BBEE certificate. In addition, when a company presents a high level of B-BBEE compliance, this further increases their procurement and licensing opportunities, enabling businesses in all sectors to maintain their competitiveness in the South African market.

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