QSE Verification


A QSE Under the amended Codes of Good Practice is an enterprise with an annual turnover of between R10 million and R50 million, however entities within this threshold that are more than 51% black-owned are automatically exempted from Verification. These entities are only required to obtain a sworn affidavit on an annual basis confirming their annual turnover and level of black ownership.

*Most sector codes have been aligned with the amended codes of good practice but have not been gazetted yet therefore their threshold may vary from sector to sector)

Under the new Amended Codes, the following changes have been made:
      •The seven elements of the scorecard have been reduced to five elements.
      •Employment Equity has been absorbed onto the Management Control element.
      •Enterprise Development and Preferential Procurement have now been combined and an additional indicator (Supplier Development) introduced to create one element called Enterprise and Supplier Development (ESD)

The amended codes have also introduced the concepts of priority elements, subminimum and the discounting principle. Certain elements of the scorecard are deemed "priority elements".

A QSE is required to comply with Ownership as a compulsory element and either Skills Development or Enterprise & Supplier Development, failure to meet the required subminimum will result in the entity's B-BBEE status level being discounted one level down.

B-BBEE elements

1. Ownership
2. Management Control
3. Skills Development
4. Enterprise and Supplier Development
5. Socio Economic Development


1. Ownership (Compulsory Priority Element)
Subminimum is 40% of Net Value based on the Time-Based Graduation Factor
2. Skills Development
(40% of the total weighting points for skills development)
3. Enterprise & Suppliers Development
Subminimum is 40% for each of the three categories within the ESD element, namely preferential procurement, suppliers development & enterprise development

CLICK HERE to request a quote for your scorecard.