bbbee Levels – Broad Based Black Economic Empowerment

bbbee Levels – Broad Based Black Economic Empowerment

How to avoid “B-BBEE Downgrades”


Broad-Based Black Economic Empowerment or B-BEEE is important and should be a topic of high priority to all companies in South Africa.

Questions often asked by our clients include:

  • How  does Broad-Based Black Economic Empowerment (B-BBEE) affect our company?
  • Why are there all these different B-BBEE Levels (bbbee Levels) and what do they mean?



The aim of B-BBEE  is to ensure that the economy is transformed and structured to allow for the meaningful participation of the majority of its citizens and to further create capacity within the broader economic landscape at all levels.


Simply put:

  • The lower or better the B-BBEE level (bbbee Levels) , the more likely a company is to obtain government tenders/licences or be awarded contracts by company’s who themselves require a high B-BBEE score by procuring from a company with a good B-BBEE rating (or score). This effectively means that the vast majority of companies, from an economic point of view, require a good B-BBEE score. This is even before considering the moral imperatives.

But how is a companies’ B-BBEE status determined? Well for most medium to big companies (over R50 million turnover) it is determined by using “the B-BBEE scorecard” (factors include skills development, employment equity, socio economic development, preferential procurement, enterprise development). This scorecard measures a whole lot of different elements/ aspects. Ideally you need to excel in all aspects.


bbbee levels

  1. PRACTICALLY IMPROVE YOUR B-BBEE SCORE:So how can proactive improvements in your company’s BEE status be practically applied?1. You can do this, amongst other things, by:
    1. Understanding the complexities of B-BBEE  and having a proper tracking system.

    Here BOTI can assist with providing various courses on B-BBEE (Fundamentals of B-BBEE; Advanced B-BBEE and a comprehensive course on Employment Equity).

    We can further assist by providing a computerized tracking system that proactively tracks your B-BBEE Scorecard from year to year.

    Please consult the following link for more details on the course or consultation OR to reserve your spot in this workshop please contact 011 882 8853.

    1. Procuring (buying) from companies with good BEE levels addresses the element of “preferential procurement” under the B-BBEE scorecard.

    Under the preferential procurement or “buying measure”, spend from a Level 1 B-BBEE company e.g., BOTI, will be multiplied by 135% as opposed to the other extreme, where you will get 0% spend with a non-compliant B-BBEE entity. This will contribute to achieving a higher preferential procurement score, which in addition to other factors, will contribute to increasing your B-BBEE status.

    1. Supporting Enterprise Development initiatives.

    BOTI also can assist in improving the enterprise development aspect of your scorecard.

    1. Scheduling training initiatives targeted at meeting your B-BBEE objectives.

    BOTI offers a range of courses from Soft Skills to Technical/ Computer Skills. To view the courses offered by BOTI please consult the following link.

    Thus, spending with a company with good B-BBEE ratings may aid in improving your BEE status and will positively contribute to economic transformation.



Please consult the following link for more details on the course or to reserve your spot in this workshop please contact 011 882 8853.

For an in-depth look at what other courses we offer click on our secure website  or alternatively view our latest course schedules.

If you would like a copy for B-BBEE affidavit or would like us to register on your database, we will be more than happy to fill out your vendor forms.

We look forward to dealing with you and contributing towards improving your B-BBEE status.



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