Exempt Verifications (EME’s)

Who are the Exempted Micro-Enterprises (EME’s) ?

  • Companies with an annual turnover of less than R 10 million.
  • They qualify as 100% contributors to BEE and are seen as Empowering Suppliers.
  • It provides small South African businesses, be it black or white owned, to compete in the marketplace.
  • Great opportunity to create or be in possession of a small business in South Africa.
  • For the purpose of Preferential Procurement, the EME’s allow for 100% BEE participation. The submission of the document is all that is required to qualify.

Requirements to be an Exempted Micro Enterprise (EME):

  • A business entity with an annual total revenue of R10 million or less qualifies to be an EME.
  • The EME can be black- or white owned as long as it complies with the prerequisites.
  • B-BBEE status will be awarded as a “Level 4 Contributor” which is a 100% of the procurement recognition.
  • An EME’s status can be improved by moving it up to a “Level 2 Contributor” (B-BBEE procurement recognition of 125%) provided that 51% or more is in black ownership or black female ownership.
  • An EME’s status can be improved by moving it up to a “Level 1 Contributor” (B-BBEE procurement recognition of 135%) provided that 100% is in black ownership or black female ownership.

 

EME Summary

  • With black shareholding 50% or less, an EME business automatically qualifies as a 100% contributor towards BEE (Level 4).
  • With black shareholding 51% or more, an EME business automatically qualifies as a 125% contributor towards BEE (Level 2).
  • With black shareholding 100%, an EME business automatically qualifies as a 135% contributor towards BEE (Level 1).