What are the different BEE levels?
BEE levels explained
- Level 1 – 100 points and above – 135% procurement.
- Level 2 – 85 to 99.99 points – 125% procurement.
- Level 3 – 75 to 84.99 points – 110% procurement.
- Level 4 – 65 to 74.99 points – 100% procurement.
- Level 5 – 55 to 64.99 – 80% procurement.
- Level 6 – 45 to 54.99 – 60% procurement.
What is Level 1 B-BBEE status?
Firms with an annual total revenue of R50 million or more are classified as Large Enterprises. EMEs and QSEs that are 100% Black-owned are deemed to have a Level 1 BBBEE status, and EMEs and QSEs that are 51% Black-owned are deemed to have a Level 2 BBBEE status.
What is a BEE rating?
A BEE Certificate is the end product of the B-BBEE verification process listing all critical information such as name, address and registration details of the company assessed, as well as the category, sector code, element scores and points as per the company’s BEE scorecard, and the issue date of the certificate.
What does it mean to be B-BBEE compliant?
B-BBEE is an empowering initiative to increase the number of black (and other previously disadvantaged) people who own and manage businesses within the South African economy through the implementation of Codes of Good Practice.
What is a Level 1 BEE company?
100% Black owned EME companies are a level 1, which amounts to a 135% BEE Procurement Recognition. ( Black is defined as any African , Indian, Coloured & Chinese , South- African Citizen) If your annual turnover is between R 10 million and R 50 million you are defined as a Qualifying Small Enterprise(QSE).
What is level 3 BEE status?
A score of 76 on the old BBBEE codes resulted in Level 3 status. A score of 76 on the new BBBEE codes will result in a drop to Level 5 status. To maintain Level 3 status a business now has to score between 90 and 95 on the BEE scorecard.
What is Level 2 BEE status?
A Level-2 BEE status is awarded to companies that score more than 95 but less than 100 of the allocated points on the BEE scorecard.
How is B-BBEE score calculated?
BBBEE compliance is determined according to the number of points a business scores on the generic scorecard. The more points it scores, the higher its level of compliance. exceed a particular target, you can claim the full number of points allocated to it.
What is the highest B-BBEE rating?
The B-BBEE Codes are there to measure the economic involvement of black people measured over 5 elements and consolidated in a scorecard. This scorecard consists of 8 compliant levels ranging from level 1 contributor to BEE at the top to a level 8 which is the lowest level.
What is the lowest level of BEE?
level 8
BEE Codes Explained This scorecard consists of 8 compliant levels ranging from level 1 contributor to BEE at the top to a level 8 which is the lowest level. A score below a level 8 is seen as non-compliant.
How can I improve my BEE rating?
Improving your B-BBEE Score
- Create key business drivers that align B-BBEE goals and objectives with your business strategy.
- Create and implement a plan to achieve the goals encapsulated in the 5 elements of the B-BBEE Act.
- Identify the priority elements and sub-minimum criteria to be achieved by the B-BBEE Act.
How do I get Level 2 bees?