This is the fourth article summarising draft amendments for the DTIC’s B-BBEE Draft Codes of Good Practice. Refer to the previous article titled “B-BBEE Draft Codes of Good Practice and public commentary for draft statements – 29 January 2026 updates” for the initial detail.
The Draft Statement is accessible at the following hyperlink on the departmental website: https://www.thedtic.gov.za/wp-content/uploads/DraftStatement-004-of-2026.pdf
OBJECTIVES OF THIS STATEMENT
The objectives of this statement are to:
1.1 Provide guidance about the treatment of Ownership for Specialised Enterprises, for Broad-Based Black Economic Empowerment (B-BBEE) purposes, of:
1.1.1 Companies limited by guarantee;
1.1.2 Higher Education Institutions;
1.1.3 Non-Profit Organisations;
1.1.4 Public entities and other Enterprises exclusively owned by organs of State; and
1.1.5 Public Benefit Schemes or Public Benefit Organisations.
1.2 Specify scorecards applicable to measured entities subject to this statement.
GENERAL PRINCIPLES
2.1 Every organ of State and public entity must apply any relevant Code of Good Practice issued in terms of the B-BBEE Act as amended when:
2.1.1 Determining qualification criteria for the issuing of licences, concessions or other authorisations in respect of economic activity in terms of any law;
2.1.2 Developing and implementing a preferential procurement policy;
2.1.3 Determining qualification criteria for the sale of state-owned enterprises;
2.1.4 Developing criteria for entering into partnerships with the private sector; and
2.1.5 Determining criteria for the awarding of incentives, grants and investment schemes in support of B-BBEE.
2.2 Public entities and other enterprises exclusively owned by Organs of State are not capable of evaluation of Black ownership under Code series 100.
2.3 Higher education institutions are not public entities under the Public Finance Management Act of 1999. They are incapable of evaluating Black ownership under Code series 100.
2.4 Companies limited by guarantee and Section 21 companies have no shareholding. They are not capable of evaluating Black ownership under Code series 100. This does not imply that companies limited by guarantee and Section 21 companies sharing in the ownership of other enterprises cannot contribute towards Black ownership of such enterprises, as provided for in Statement 100.
2.5 Non-Profit Organisations and Public Benefit Organisations generally do not have any beneficial ownership and are incapable of evaluation of Black ownership under Code series 100. This does not imply that Non-Profit Organisations and Public Benefit Organisations sharing in the ownership of other enterprises, as broad-based ownership schemes cannot contribute towards Black ownership of such enterprises as provided for in Statement 100.
2.6 Wherever any of the entities listed in paragraphs one and two require evidence of their own B-BBEE compliance, they will use the Specialised Generic Scorecard. If those entities are also Qualifying Small Enterprises, they will use the Specialised Qualifying Small Enterprises Scorecard.
2.7 Entities that are Exempted Micro Enterprises (EME) under this statement are deemed to have a B-BBEE status of “level four”, having a B-BBEE recognition level of 100%.
2.8 Enhanced B-BBEE recognition level for an EME:
2.8.1 Despite paragraph 2.7, an EME that has at least 75% black beneficiaries qualifies for elevation to “Level One Contributor”, having a B-BBEE recognition level of 135%; and
2.8.2 Despite paragraphs 2.7 and 2.8.1, an EME that has at least 51% Black beneficiaries qualifies for elevation to “Level Two Contributor”, having a B-BBEE recognition level of 125%.
2.9 An EME is only required to obtain a sworn affidavit annually confirming the following:
2.9.1 Annual Total Revenue/ Allocated Budget/Gross Receipts of R10 million or less; and
2.9.2 Level of percentage of Black beneficiaries.
2.10 Any misrepresentation in terms of paragraph 2.9 above constitutes a criminal offence as set out in the B-BBEE Act as amended.
2.11 Entities that are Qualifying Small Enterprises (QSE) will use the Specialised Qualifying Small Enterprises Scorecard.
2.12 Despite paragraph 2.11, a QSE that has at least 75% Black beneficiaries qualifies for elevation to “Level One Contributor”, having a B-BBEE recognition level of 135%.
2.13 Despite paragraphs 2.11 and 2.12, a QSE that has at least 51% Black beneficiaries qualifies for elevation to “Level Two Contributor”, having a B-BBEE recognition level of 125%.
2.14 A QSE that has at least 51% Black beneficiaries is only required to obtain a sworn affidavit annually confirming the following:
2.14.1 Annual Total Revenue/ Allocated Budget/Gross Receipts of R50 million or less; and
2.14.2 Level of percentage of Black beneficiaries.
2.15 Any misrepresentation in terms of paragraph 2.14 above constitutes a criminal offence as set out in the B-BBEE Act as amended.
THE SPECIALISED GENERIC SCORECARD
3.1 The following table represents the Specialised Generic Scorecard and contains the:
3.1.1 Elements of the scorecard;
3.1.2 Weightings; and
3.1.3 The Code series reference that specifies the mechanisms for measurement and calculation of each of the elements of the scorecard (Code series 100–500).
3.2 All other terms of statement 000-500 apply to Measured Entities subject to this statement, mutatis mutandis.
Note that the changes are UNDERLINED and include the infamous “Transformation Fund”.
ENTERPRISE AND SUPPLIER DEVELOPMENT SPECIALISED SCORECARD
Various minor changes have been made to the allocation of points and will not be dealt with in this article. The reader is, however, reminded to read the full draft statement provided on the web link above.
TRANSFORMATION FUND
Of the three additions, the most notable is the “Annual Value of Enterprise and Supplier Development Contribution to the Transformation” measurement, linked to 20 points and a contribution of “3% of NPAT or 0.3% annual revenue/allocated budget/gross receipts/discretional spend.”
The next article will highlight changes made to “CODE SERIES 600: CODES OF GOOD PRACTICE FOR QUALIFYING SMALL ENTERPRISES (QSE’S).”
