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Broad-Based Black Economic Empowerment Act, 2003 (Act No. 53 of 2003)

Sector Codes

Defence Sector Code

11. Eligibility as an exempted Micro-Enterprise


11.1 Any Enterprise with an annual Total Revenue of R5,000,000 (five million Rand) or less qualifies as an Exempted Micro-Enterprise.


11.2 An Exempted Micro-Enterprise is deemed to have a B-BBEE Status of "Level Four Contributor" having a B-BBEE recognition level of 100%.


11.3 Enhanced B-BBEE recognition level for an Exempted Micro-Enterprise:
11.3.1 despite paragraph 11.2 an EME which is 100% Black Owned qualifies for elevation to "Level One Contributor" having a B-BBEE recognition level of 135%;
11.3.2 despite paragraphs 11.2 and 11.3.1, an EME which is at least 51% Black owned qualifies for elevation to "Level Two Contributor" having a B-BBEE recognition level of 125%; and
11.3.3 despite paragraphs 11.2 and 11.3, an EME is allowed to be measured in terms of the QSE scorecard should they wish to maximize their points and move to a higher B-BBEE recognition level.


11.4 An EME is only required to obtain a sworn affidavit or Companies and Intellectual Property Commission (CIPC) issued certificate confirming the following:
11.4.1 annual total Revenue/Allocated Budget/Gross Receipts of R5,000,000 (five million Rand) or less; and
11.4.2 level of Black Ownership.


11.5 Any misrepresentation in terms of Paragraph 11.3 above constitutes a criminal offence as set out in the Act as amended from time to time.