Is your BBBEE Grading impacting your Business?

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Is your BBBEE Grading impacting your Business?

What is the meaning of BBBEE?

Broad-Based Black Economic Empowerment (BBBEE or B-BBEE as written by the South African government) is a form of economic empowerment initiated by the South African government in response to criticism against narrow-based empowerment instituted in the country during 2003/2004. It has been said that “B-BBEE legislation is the most significant piece of legislation affecting South African business today”.

The Broad-based Black Economic Empowerment Act 53 of 2003 affects all business and individuals in South Africa. It is not only vital for the country’s integrated prosperity, but a catalyst for economic growth. It makes sense to ensure that your BEE rating is as high as possible. Government has taken small and medium-sized businesses in consideration with the development of BBBEE legislation.

You have to be BBBEE compliant to be able to do business in South Africa. One of the 7 elements of the BBBEE scorecard is preferential procurement and supplier development. This is the element that carries the most weight (nearly 40%). If you procure from other entities that are BBBEE compliant your BBBEE score increases. One can see the trickledown effect from suppliers to government down to their suppliers. Once again the goal is to try and achieve a level 4 as this gives you 100% contribution towards preferential procurement.

BBBEE makes it possible for the business to get access to contracts.
BBBEE can help the business to achieve its social responsibility towards the community
BBBEE can result in the acquiring of new customers for the business.
BBBEE can lead to new innovative ideas with the input of the empowering partner.
BBBEE makes it possible for the business to invest in affordable skills development for employees.

The challenge is to improve on your B-BBEE activities and score each year. If your annual turnover is between R 10 million and R 50 million you are defined as a Qualifying Small Enterprise (QSE).

The Generic Scorecard includes all seven B-BBEE Elements, namely: Ownership, Management Control, Employment Equity, Skills Development, Preferential Procurement, Enterprise Development, Socio-Economic & Sector Specific Contributions.

How is BEE Compliance Expressed and what Level is considered Compliant?

1 100 or above 135%
2 85 to 99.99 125%
3 75 to 84.99 110%
4 65 to 74.99 100%
5 55 to 64.99 80%
6 45 to 54.99 60%
7 40 to 44.99 50%
8 30 to 39.99 10%
Non Compliant < 30 0%


The codes define three types of companies;

EME below R10 million
EME – exempt micro enterprise – a company that has an annual turnover of less than R10 million. These companies are automatically given a BEE score of 65 points (level 4), and if majority black owned, level 2 and if 100% black owned, level 1

QSE between R10 million and R50 million
QSE – Qualifying Small Enterprise – an enterprise with an annual turnover of between R10 million and R50 million. The QSE will need to fill in a scorecard but use slightly easier targets.

Generic above R50 million
Generic – all companies with a turnover above R50 million per annum.

Benefits of B-BBEE for business

Your clients will know that you are doing whatever it takes to stay ahead in your business – that you mean business and that you are look to them to support your efforts.
You will have a clear picture of what types of supplier you have. A rating would give you leverage to be able to negotiate better discounts, etc. Supplier analysis will assist with your procurement policy development.
Your image will be enhanced by your demonstration of leadership in your industry – be perceived as in step with development initiatives.
By focusing on HR development, enterprise development and BEE, you will demonstrate commitment towards the social, educational and economic developments in the community in which you operate.
Attempt to increase your develop your employees’ skills and potential development as well as your BEE ratings enhance fair and progressive employment practices.
Your staff will see what you are doing, which will boost their morale.
The sooner your business is rated, the sooner you will understand how to develop a BEE strategy to increase your annual BEE rating. Your BEE strategy should form part of your company’s overall strategy plan.
BEE can also be a marketing tool. As a client of BEE Empowered, your company’s name will be listed on our website’s BEE directory and will be available to all those searching for BEE-compliant suppliers.

Don’t get left in the dark. 

A level one contributor is the highest achievable status and the lowest level of BEE compliance is level eight. The higher the BEE status level, the stronger a company is in relation to its competition.


Sources: BeEmpowered

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About Devika Suresh

I started at Leads 2 Business in January 2010 (7 Years ago). I am presently an L2Q Assistant. Started in the Daily Tenders Bills department and worked my way up to the L2Q department working the bills.

CSD – How, Where, Why to Register

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CSD – How, Where, Why to Register

CSD stands for Central Supplier Database. It came into effect in April 2016. Basically, if you want to participate do business with the South African Government and its entities, you are required to be registered on the CSD.

Below is from the CSD website:

What is the CSD?

The Central Supplier Database (CSD) is a single database that will serve as the source of all supplier information for organs of state. The supplier information will be verified with institutions such as the South African Revenue Service, Companies and Intellectual Property Commission, Department of Home Affairs etc. All suppliers will be required to complete the required information on the CSD website and must ensure it is complete, accurate and comprehensive.

What do I need to register on the CSD?

Depending on the supplier type, the following would be amongst the required information:

  • A valid cell-phone number to receive a One Time Pin (OTP);
  • A valid email account;
  • Supplier identification information e.g. identification number or company registration number or trust number, etc.;
  • Industry classification information;
  • Supplier contact information e.g. preferred contact name, email address, cell-phone number, telephone number etc.;(Note: Please ensure that you provide all relevant numbers where available i.e. telephone number (landline), cell-phone number, fax number, toll-free number, website address. This is to enable the Organ of State practitioners to reach you when intending to contact you for procurement purposes) ;
  • Supplier address information e.g. country, province, municipality, city, suburb, ward, and postal code;
  • Bank account information if relevant to ensure future payments; (Note: It is critical to refer to the banking FAQ on the OCPO website prior to capturing your bank information. Verification against the banks may take up to four (4) days, please complete this information in advance to prevent payment delays);
  • Supplier tax information if relevant;
  • Directors/Members information, e.g. name and identification number of directors, members etc.;
  • Commodities the supplier can provide; (Note: commodities need to be captured accurately as they are used by the Organ of State practitioners to search goods and services required by them. The delivery locations of commodities must be accurate to prevent you from not responding to request for quotations sent from practitioners in areas where you do not supply commodities); and
  • Accreditations the supplier is associated with e.g. CIDB, SETA, SANAS etc. if relevant.

How do I register on the CSD?

You are required to follow a two-stage, self-registration process:

How do I know I am successfully registered?

The registration is complete once the supplier information is assigned a Supplier number and a 36-digit Unique Registration Reference Number.

How do I obtain a registration report?

  • Click on Report, followed by Registration;
  • Enter your Supplier number and the Unique Registration Reference Number;
  • Click View Report.

I sent a list of questions through to the CSD on 10 December 2018, in a bid to not only get some answers to questions but also to see how responsive they were to my queries. You are able to contact the CSD directly through their website, by using their Provide Feedback option. I have corresponded with them previously, and haven’t had any complaints about their response time, and with this little test; I was impressed. They responded a couple of hours after I emailed them. Below are the questions I sent and the answers, I received:

Q. How long, on average, does it take from beginning to registered?

A. It takes about 20 minutes to register a supplier. The bank takes up to four business days to verify after registering.

Q. Which form of communication is encouraged by the CSD? Through the website, telephone or the Walk-In Centres?

A: All those forms of communication are encouraged, it depends which one you prefer.

Q. What info is required should a supplier use a Walk-In Centre?

A. To register in the walking center one should bring their ID, tax clearance, banking details (business account), CK (depends what type of business it is).

Q. Is there any company/ supplier that doesn’t have to be registered on the CSD?

A. Everyone that wishes to conduct business with the government needs to register on CSD.

Q. Does a supplier’s registration lapse?

A. As long as you pay your CIPC annual fee, you will not be de-registered.

Q. How does a supplier de-activate their registration, i.e. remove themselves from the CSD?

A. One can deactivate or delete their profile at any point. When deleted, the supplier number cannot be retrieved back.

Q. How many companies can be registered per profile?

A. You can register up to five (5) companies under your profile.

Q. Is the CSD involved in payment being made to suppliers for services rendered?

A. The department that awarded the tender will be responsible for payment for services rendered.

Contacting the CSD:

The website address is

There are various ways to contact the CSD, the main being National support:

012 406 9222

The direct link for all the Provincial options is

There are seven Provincial Walk-In Centres:

Walk-In Centres

National Treasury

National Treasury

240 Madiba Street, City of Tshwane, Pretoria, Gauteng

Free State

Free State Provincial Treasury

Fidel Castro Building, 55 Elizabeth Street, Mangaung, Bloemfontein,

Free State

Eastern Cape

Eastern Cape Provincial Treasury

Tyamzashe Building, Phalo Avenue, Bhisho, Buffalo City, Eastern Cape

Western Cape

City of Cape Town

12 Hertzog Boulevard, 2nd Floor Civic Centre Building, Cape Town,

Western Cape


Limpopo Provincial Treasury

56 Paul Kruger Street, Capricorn, Polokwane, Limpopo


Mpumalanga Provincial Government

Building No 4, Lower Ground Floor, 7 Government Boulevard, Ehlanzeni, Mbombela, Nelspruit,


Kwa-Zulu Natal

Kwa-Zulu Natal Provincial Treasury

Treasury House, 145 Chief Albert Luthuli Road, Msunduzi, uMgungundlovu, Pietermaritzburg, Kwazulu-Natal




To view more articles, please visit the Leads 2 Business Blog.
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About Claire Donaldson

I started working at Leads 2 Business in February 2005, and have served as Head of Department of Daily Tenders from 2007 until the present. I oversee both the Daily Tenders South Africa and Africa Departments.

Tender Infographic: Western Cape

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Tender Infographic: Western Cape
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About Sasha Anderson

I enjoy making new professional acquaintances and corresponding with existing clients. Reach out if you want to talk, L2B, social media, construction, technology, shoes, dachshunds, popular culture or travel.

The Ultimate Trades Guide

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Ultimate Trades Guide

A Trade as defined on our platform is the commodity, goods or services that your company

Leads 2 Business provides a platform where you can get listed and specify your trades on our comprehensive Directory of Clients, Professionals, Contractors and Suppliers.

Why wait for business?

Present opportunities for your company, with a trade specific approach to new business, engage with Buyers who are looking for services or products within your scope of work.



Are you looking for the following?

  • Bill of Quantities converted and coded according to distinct trades which are then system generated to formulate a Request for Quote (RfQ).
  • Effortless, fast, online communication between Contractors and Suppliers using our electronic pricing enquiry platform.
  • The ability to select from our database of suppliers and send trade and region specific Request for Quotes (RfQ).
  • A dedicated support team that will assist in the progress of your quotations.

RFQ System


  • Take an active approach and generate new business, get listed on our extensive Directory.
  • Define your scope of business, list your products, trades, services and serviceable regions.
  • Gain access to Bills that match your trades and serviceable areas.
  • Become a preferred supplier.
  • Respond to contractors directly using our unique and remarkable online pricing platform.
  • Get alerts on awarded contracts
  • Give your business the edge, an extraordinary user friendly platform, used extensively in the construction industry that could open your business up to dynamic prospects.

Subscribe to L2Q

To view more articles, please visit the Leads 2 Business Blog.
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About Lola Govender

My name is Lola Govender. I have been working at L2B for 9 years and am very passionate about our business.

Featured Company: ISE Group (Pty) Ltd

Who’s who in your Industry? This week we are featuring ISE Group (Pty) Ltd

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About Jennifer Ellis

I Started working with Leads 2 Business in 2007 and been based in Port Elizabeth as a Senior account Executive. I oversee the Subscriber base in the Port Elizabeth and surrounds region as well as some National subscribers.

Project Infographic: Free State

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Project Infographic: Free State
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About Sasha Anderson

I enjoy making new professional acquaintances and corresponding with existing clients. Reach out if you want to talk, L2B, social media, construction, technology, shoes, dachshunds, popular culture or travel.

Leads 2 Business – Year End Function Awards Evening 2018

The much-anticipated and Auspicious Leads 2 Business Awards Evening was recently held at the tranquil Tala Game Reserve.

Highlights of the evening was the presentation of several Awards to personalities who excelled commendably. The winners were presented with a commendation certificate, a stunning photo book and a floating trophy. In addition, awards for 5 years and 10 years long service were also presented.


The CEO's Customer Relations Award
Winner: Christine Brooks
The Top Sales Award
Winner, Michelle Engelbrecht
The Top Tele-Sales Award
Winner : Jackie van Zyl
The Top Account Co-ordinator Award
Winner : Candice van Aswegan
The Top Retention Admin Award
Winner : Cecile van Deventer
The Top Retention Award
Winner : Wendy De Wet
The Voice of the Company Award
Winner : Tara Hutton
The Top Content Researcher Award
Winner : Michelle Hosford
The Most Improved Employee Award
Winner : Connie Flinders
The Most Valued Employee Award
Winner : Sasha Anderson
The Platinum Quill Blog Award
Winner : Lauren Davids
5 Year Long Service Awards
Winners : Bianca Horne and Shanna Knezovich
10 Year Long Service Awards
Winners : Barry West, Debbie Wessels, Antonette Claassens, Lola Govender & Jackie van Zyl


Congratulations and Well Done to all the Award Winners!

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About Marlaine Andersen

I have been working for Leads 2 Business, in the Private Projects Department, for 10 years this July. I am Deputy HoD for Private Projects. Researching mining projects and projects through-out the African continent are my areas of research and I find them most interesting.

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