B-BBEE Tender Requirements South Africa 2026: PPPFA 80/20 & 90/10 Explained
B-BBEE Tender Requirements South Africa 2026: Complete Guide
Updated May 2026. Broad-Based Black Economic Empowerment (B-BBEE) is one of the two biggest factors that determine whether your bid succeeds or fails in the South African government tender market. This guide explains how the PPPFA preference points system works, what B-BBEE level you need, how EME and QSE affidavits work, and what practical steps to take before your next bid.
Why B-BBEE Matters in Tenders
Government procurement in South Africa is governed by the Preferential Procurement Policy Framework Act (PPPFA) and its Regulations. The law requires that all tenders above R30,000 award points based on a supplier's B-BBEE contributor status — in addition to price and functionality. This preference system is not optional; it is baked into every bid evaluation formula.
For a supplier bidding on a R2M cleaning contract under the 80/20 system, 20 out of 100 evaluation points come from B-BBEE status. A Level 1 supplier receives all 20 points; a non-compliant supplier receives 0. That gap is decisive when competing suppliers are close on price.
The PPPFA Preference Points Systems
80/20 System — Contracts R30,000 to R50 Million
| Evaluation Element | Points |
|---|---|
| Price and functionality | 80 |
| B-BBEE preference | 20 |
| Total | 100 |
90/10 System — Contracts Above R50 Million
| Evaluation Element | Points |
|---|---|
| Price and functionality | 90 |
| B-BBEE preference | 10 |
| Total | 100 |
The threshold that determines which system applies is stated in the bid document. When in doubt, look for "NDP" (National Development Plan) references — large infrastructure tenders above R50M almost always use 90/10.
B-BBEE Preference Points Table
Under the 80/20 System
| B-BBEE Status Level | Preference Points |
|---|---|
| Level 1 | 20 |
| Level 2 | 18 |
| Level 3 | 14 |
| Level 4 | 12 |
| Level 5 | 8 |
| Level 6 | 6 |
| Level 7 | 4 |
| Level 8 | 2 |
| Non-compliant | 0 |
Under the 90/10 System
| B-BBEE Status Level | Preference Points |
|---|---|
| Level 1 | 10 |
| Level 2 | 9 |
| Level 3 | 7 |
| Level 4 | 6 |
| Level 5 | 4 |
| Level 6 | 3 |
| Level 7 | 2 |
| Level 8 | 1 |
| Non-compliant | 0 |
B-BBEE Scorecard: The Seven Elements
A full B-BBEE verification measures your company against seven elements. The total score out of 103 points (including bonus points) determines your contributor level:
| Element | Weighting |
|---|---|
| Ownership | 25 pts |
| Management Control | 15 pts |
| Skills Development | 20 pts |
| Enterprise and Supplier Development | 40 pts |
| Socio-Economic Development | 5 pts |
| Bonus (sector-specific) | up to 3 pts |
Level thresholds (Generic Scorecard — Turnover > R50M):
| Score | Level |
|---|---|
| ≥ 100 | Level 1 |
| ≥ 95 | Level 2 |
| ≥ 90 | Level 3 |
| ≥ 80 | Level 4 |
| ≥ 75 | Level 5 |
| ≥ 70 | Level 6 |
| ≥ 55 | Level 7 |
| ≥ 40 | Level 8 |
| < 40 | Non-compliant |
QSE scorecard (turnover R10M–R50M) uses four of the seven elements. EME companies below R10M are exempt from the full scorecard.
EME and QSE Affidavits: The SMME Shortcut
Exempted Micro Enterprise (EME) — Turnover < R10M
An EME does not need a verification certificate from an accredited agency. Instead, submit a sworn affidavit confirming turnover is below R10M. The affidavit is signed in front of a commissioner of oaths — available at SAPS stations, the post office, and most attorneys.
Automatic B-BBEE levels for EMEs:
- 51%+ black-owned → Level 1
- 100% black-owned → Level 1 (with enhanced recognition)
- Not 51%+ black-owned → Level 4
Cost: R0 to R300 depending on the commissioner. Valid for 12 months. No audit or agency required.
Qualifying Small Enterprise (QSE) — Turnover R10M to R50M
QSE affidavits work identically to EME affidavits. A 51%+ black-owned QSE automatically achieves Level 1. Non-black-owned QSEs must complete the 4-element QSE scorecard but may still use a sworn declaration rather than a full verification if ownership is the primary driver.
When to upgrade to a full certificate: If your turnover is approaching the QSE threshold, or you are bidding on high-value contracts where competitors will have verified certificates, invest in formal B-BBEE verification. A full certificate carries more weight with evaluators who scrutinise EME affidavits more carefully on large contracts.
Where to Get a B-BBEE Certificate
B-BBEE verification must be performed by a SANAS-accredited verification agency. The SANAS website (sanas.co.za) has the current list. Costs vary:
- EME/QSE affidavit: free to ~R300 (commissioner fee only)
- QSE scorecard verification: R3,000–R8,000
- Generic/large entity verification: R15,000–R50,000+
Verification takes 4–8 weeks for a full scorecard. Plan well ahead of your target bid deadline.
30% Subcontracting Rule
The PPPFA Regulations (Regulation 9) allow a government buyer to designate up to 30% of a contract value for subcontracting to:
- EMEs or QSEs
- Black-owned entities
- Women-owned entities
- Youth-owned enterprises
If the bid document invokes Regulation 9, you must identify and commit a designated subcontractor who will perform at least 30% of the work. Failure to do so disqualifies the bid. For large infrastructure contracts above R30M, Regulation 9 is increasingly the default — check the SBD 6.1 form in the bid pack.
B-BBEE Verification Fraud: What to Avoid
The DTI and National Treasury prosecute B-BBEE fronting aggressively. Fronting includes:
- Listing a black person as director purely for the certificate without real management control
- Using a black-owned company as a pass-through without genuine participation
- Submitting a certificate from a non-SANAS-accredited agency
Fronting is a criminal offence under the B-BBEE Act with fines and imprisonment. Supplying false information in a government bid is a further offence under the PPPFA. Any B-BBEE status claimed in a bid must be verifiable against a valid, SANAS-accredited certificate or a lawfully-executed affidavit.
Practical Steps Before Your Next Bid
- Check your current status: Log in to your CSD profile — your B-BBEE level is displayed there. Ensure the certificate or affidavit uploaded is current.
- If EME/QSE-eligible: Draft an affidavit now. Have it commissioned and uploaded to your CSD profile so it is ready for any bid.
- If you want a higher level: Speak to a SANAS-accredited verification agency. Ownership restructuring and skills development spend are the fastest levers to improve a score.
- Track expiry dates: B-BBEE certificates are valid for 12 months. The day yours lapses you drop to non-compliant on the CSD.
- On the bid day: Submit the SBD 6.1 (Preference Points Claim Form) with the B-BBEE level matching your current certificate. Mismatch between the certificate and the SBD 6.1 is instant disqualification.
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