The highest BEE level for compliance is Level 1.
Understanding BEE Compliance Levels
Broad-Based Black Economic Empowerment (BEE) in South Africa utilizes a structured system of compliance levels to measure and encourage economic transformation. There are 8 distinct BEE Levels that businesses can achieve, with each level reflecting a different degree of compliance.
- Level 1: This is the most desirable and highest level of compliance, indicating exemplary performance and significant contributions to BEE objectives. Achieving Level 1 signifies that a business has made the strongest possible commitment to economic transformation.
- Levels 2 through 8: These subsequent levels represent varying degrees of compliance, with Level 8 being the lowest recognized compliant status.
- Non-Compliance: If a business scores below the threshold required to qualify for Level 8, it is deemed non-compliant. This status indicates a lack of sufficient contribution to BEE principles.
A company's BEE score is determined by its performance across five key elements, with a potential to score over 100 points on the entire BEE Scorecard. This total score directly dictates the percentage of compliance and, consequently, the BEE level attained, illustrating the entity's commitment to equitable economic participation.
