Who can use a QSE sworn affidavit

A QSE sworn affidavit is an official declaration enabling qualifying black-owned small enterprises to confirm their B-BBEE compliance status.

The R10 million EME and R50 million QSE limits described here are the Generic Codes limits. Establish the applicable sector code first: sector-specific eligibility and evidence rules can change the answer. B-BBEE Commission guidance.

Under the Broad-Based Black Economic Empowerment (B-BBEE) Act 53 of 2003 as amended by Act 46 of 2013 1 and the Department of Trade, Industry and Competition (dtic) Codes of Good Practice 2, a Qualifying Small Enterprise (QSE) with an annual Total Revenue above R10 million and up to R50 million 3 4 can use a B-BBEE sworn affidavit to prove its B-BBEE status if it is at least 51% Black owned 3 5.

Entities with less than 51% Black ownership do not qualify for a sworn affidavit under the Generic Codes and must be measured using the QSE Scorecard by a South African National Accreditation System (SANAS) accredited verification agency 6 7. Where an entity operates in a sector governed by an official gazetted Sector Code, the specific Sector Code rules take precedence over generic provisions 8.

QSE ownership sector and affidavit eligibility

For South African small and medium enterprises (SMEs), close corporations, and proprietary limited companies, establishing eligibility for a QSE sworn affidavit requires separating formal corporate registration from statutory B-BBEE qualification. CIPC registration establishes the incorporation record for a company or close corporation; SARS registration establishes a tax record, but B-BBEE affidavit eligibility is determined strictly by annual total revenue thresholds and effective Black ownership percentages 3 9 10.

— Practical point from this guide

A valid QSE sworn affidavit provides B-BBEE evidence for a period of 12 months calculated from the date it was commissioned by an authorised Commissioner of Oaths 11. Regulator guidance issued by the B-BBEE Commission under Practice Guide 01 of 2022 (which replaced Practice Guide 01 of 2018 as of 01 November 2022) confirms that measured entities must ensure their affidavits strictly comply with gazetted dtic templates to maintain commercial validity 5 12.

The qualification tests to check: qse ownership sector

Determining whether an entity may lawfully issue a QSE sworn affidavit requires evaluating four independent qualification tests:

1. Total Revenue Test: The measured entity must have an annual Total Revenue of above R10 million and up to R50 million for the financial year under review 3 4. Total Revenue is defined as the total income of an entity from its operations determined under South African Generally Accepted Accounting Practice 13. If annual revenue is R10 million or less, the entity qualifies as an Exempted Micro-Enterprise (EME) rather than a QSE 14 15.
2. Black Ownership Threshold Test: The entity must be at least 51% Black owned or 100% Black owned as defined in Statement 100 of the Codes of Good Practice 3 16. A QSE that is 100% Black owned qualifies for Level One Contributor status (135% B-BBEE procurement recognition), while a QSE that is at least 51% Black owned qualifies for Level Two Contributor status (125% B-BBEE procurement recognition) 3 17. QSEs with less than 51% Black ownership cannot use an affidavit 5 6.
3. Sector Code Applicability Test: In terms of Statement 000 paragraph 3.2.3, a measured entity in a sector in respect of which a Sector Code has been gazetted under Section 9 of the B-BBEE Act may only be measured for compliance in accordance with that Sector Code 8 18. Entities in sectors such as Construction, Agriculture, Forestry, Financial Services, ICT, or Transport must verify whether their specific sector code permits affidavit usage or prescribes distinct thresholds 6 19 20 21.
4. Anti-Splitting and Entity Structure Test: In terms of Statement 000 paragraph 2.5, initiatives that split, separate, or divide a measured entity as a means of ensuring eligibility as an EME or QSE constitute a statutory offence under the B-BBEE Act 22 23. Furthermore, as stated in Notice 1019 of 2013, "substance takes precedence over legal form" when evaluating operational and ownership compliance 24.

Exclusions and Statutory Definitions

• Black People Definition: Under the Act, Black people is a generic term referring to African, Coloured, and Indian natural persons who are South African citizens by birth or descent, or who acquired citizenship by naturalization prior to 27 April 1994 or on/after that date if eligible prior 25.
• Exclusion of State Ownership: Ownership held by Organs of State or Public Entities must be excluded when calculating Black ownership percentages unless designated with B-BBEE Facilitator status by the Minister 26.

Evidence behind the eligibility decision: affidavit eligibility

To support an eligibility decision and withstand procurement due diligence, every claim on a QSE sworn affidavit must link directly to verifiable primary records 27.

Key Evidence Records and Responsible Persons

• Deponent Designation & Identity: The deponent must be an authorised director, owner, or member of the close corporation/company, with their full name and identity number recorded as per official identity documentation and CIPC records 9 28.
• Enterprise Identification: The enterprise name, registration number, VAT number, and physical business address must match CIPC registration records exactly 9 29.
• Financial Year End & Revenue Basis: The affidavit must state the exact financial year-end date (day/month/year) and confirm whether total annual revenue is backed by audited financial statements, financial statements, or management accounts 10.
• Ownership Breakdown: The percentage of Black ownership, Black female ownership, and Black designated groups (youth, disabled, unemployed, rural, military veterans) must be specified 9 30.
• Commissioner of Oaths Independence: The Commissioner of Oaths cannot be an employee or ex officio officer of the measured entity, as a person cannot commission an affidavit in which they have a legal or commercial interest 31. The qualification of Commissioners is governed by the Justices of the Peace and Commissioners of Oaths Act 16 of 1963 administered by the Department of Justice and Constitutional Development 31.

Eligibility decision table

A qualifying case and an excluded case: qse ownership sector

Hypothetical qualifying case: Silo Manufacturing (Pty) Ltd [Primary guidance](https://www.thedtic.gov.za/wp-content/uploads/BEE-code_gud_practice10102013.pdf).

Silo Manufacturing (Pty) Ltd operates in general manufacturing (under the Generic Codes) and generated an annual Total Revenue of R28 million for its financial year ended 28 February. The company’s own securities register and ownership evidence confirm that 51% of its ordinary shares and exercisable voting rights are held by Black South African citizens.

Eligibility Assessment: Because annual revenue is above R10 million and up to R50 million 3 and Black ownership is at least 51% 16, Silo Manufacturing qualifies to use the official dtic QSE Sworn Affidavit template 12 33. The deponent (a registered director) completes the form using the 28 February financial year-end data 10 and signs it before an independent practising attorney acting as Commissioner of Oaths 31.

Silo Manufacturing obtains automatic Level Two B-BBEE Contributor status (125% procurement recognition) valid for 12 months without needing a SANAS verifier 3 11.

Hypothetical excluded case: Apex Logistics (Pty) Ltd [Primary guidance](https://www.thedtic.gov.za/wp-content/uploads/BEE-code_gud_practice10102013.pdf).

Apex Logistics (Pty) Ltd is a hypothetical furniture retailer assumed to fall under the Generic Codes after checking sector scope with an annual Total Revenue of R35 million for its recent financial year. CIPC records show that 30% of its equity is held by Black women and 70% by non-Black shareholders.

Eligibility Assessment: Although Apex Logistics falls within the QSE revenue range of above R10 million up to R50 million 3, its Black ownership level is 30%, which is below the statutory 51% threshold required for a QSE sworn affidavit under Statement 000 paragraph 5.3 3 17. Apex Logistics cannot use a sworn affidavit 5 6. To establish its B-BBEE status, Apex Logistics must undergo a full verification process by a SANAS-accredited B-BBEE verification agency using the QSE Scorecard 6 7.

Issuing a sworn affidavit under these circumstances would constitute a false representation under Section 13O(1)(a) of the B-BBEE Act 34.

What changes the answer: affidavit eligibility

An entity's eligibility to use a QSE sworn affidavit is not permanent and must be reassessed annually or whenever structural changes occur 11 33:

• Revenue Expansion: If an entity's annual Total Revenue exceeds R50 million at financial year end, it exits QSE status and becomes a Large Enterprise 3. It can no longer use a QSE affidavit and must undergo full SANAS verification against the Generic Scorecard 6 8.
• Ownership Changes: If share transfers or equity restructurings reduce Black ownership below 51%, the entity immediately loses affidavit eligibility for future transactions and must undergo SANAS verification on the QSE Scorecard 3 6.
• Expiry of Financial Period: A sworn affidavit is valid for exactly 12 months from its date of commissioning 11. Once expired, a new affidavit must be deposed using the most recent financial year-end revenue records 10 11.
• Gazetting of New Sector Codes: If the dtic gazettes a new or amended Sector Code covering the entity's industry under Section 9 of the Act, the entity must transition to the specific sector code rules 8.

Next steps for B-BBEE supplier evidence

Decision Checklist for SMEs

1. [ ] Verify Annual Revenue: Confirm that Total Revenue for the recent financial year end was above R10 million and up to R50 million using signed financial statements or management accounts 3 10.
2. [ ] Calculate Black Ownership: Confirm via CIPC docs, share certificates, and ID copies that Black natural persons hold at least 51% or 100% exercisable voting rights and economic interest 9 16.
3. [ ] Check Sector Alignment: Confirm whether the enterprise falls under Generic Codes or a mandatory Section 9 Sector Code 8.
4. [ ] Select Official dtic Template: Download the latest gazetted dtic QSE Sworn Affidavit template (or use company letterhead with exact template wording) 12.
5. [ ] Execute Before Independent Commissioner: Ensure the deponent (director/owner/member) and the independent Commissioner of Oaths sign and date the document on the exact same date 7 28 31.
6. [ ] Maintain Primary Record Bundle: File the completed affidavit alongside CIPC documents, share registers, ID copies, and financial statements for customer due diligence 27 35.

Related guides

• Choosing the correct sector affidavit template
• B-BBEE affidavits versus verification certificates
• Compliance and Regulations: Keeping Your Business on Track