Exempt Micro Enterprises

(EME's) 

A 51% Black Owned entity means an entity in which:

    • black people hold 51% or more of the exercisable voting rights;

    • black people hold 51% or more of the economic interest; and

    • has earned all points for Net Value

Exempt Micro Enterprises (EME's) are businesses with an annual turnover of below R10 million. EME's are exempt from having to comply with the B-BBEE scorecard and merely need to complete an affidavit. The affidavit must confirm confirming black ownership, turnover and company details.This affidavit must be certified by a commissioner of oaths .

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With the new B-BBEE Codes of Good Practice gazetted on 11 October 2013, enterprises with an annual turnover less than R10 million or are recently formed or incorporated entities that have been in operation for less than one year. (start-up enterprises) Start-up companies qualify as an Exempted Micro Enterprise (“EME”) and are exempt from being measured on a BEE scorecard.  

Any EME automatically qualifies as follows: 

    • 100% black owned EME – level 1 BEE status and a procurement recognition level of 135%

    • 51% or more black owned EME – level 2 BEE status and a procurement recognition level of 125%

    • Any other EME – level 4 status and a procurement recognition level of 100%

In terms of the Amended Codes EME’s only require an affidavit confirming their B-BBEE Status. Template affidavits may be downloaded from the Department of Trade and Industry website (www.thedti.gov.za).

 

Verification agencies are no longer allowed to issue certificates for EME’s in terms of the Amended Codes.

Black Ownership
Status Level
Procurement Recognition
100% Black
>51% Black
<51% Black
Level 1
Level 2
Level 4