AI agents for business finance: what they can and can't do
What AI agents can do in bookkeeping, close, collections and compliance today, where a person must stay in charge, and how to judge a product.
The short answer
A business with annual revenue of R10 million or less is an Exempted Micro Enterprise under the generic B-BBEE codes and proves its status with a sworn affidavit, not a verification audit. On the dtic's general affidavit, a business less than 51% black-owned, which includes a wholly Nigerian-owned one, is recorded at Level Four with 100% procurement recognition. The affidavit is valid for 12 months from the date the commissioner of oaths signs it.
What B-BBEE is and why customers ask for it
Broad-Based Black Economic Empowerment (B-BBEE) measures how far a business contributes to the economic inclusion of black South Africans. Large companies and the state score their suppliers on it, so a supplier's B-BBEE level affects how much of its spend a customer can count. That is why a corporate buyer or a tender form asks a small supplier for a B-BBEE certificate or affidavit even when the supplier is tiny.
Black ownership under the codes is measured by ownership held by black South Africans. Ownership by Nigerian citizens is generally not counted as black ownership, so a company owned entirely by Nigerians would normally tick the "less than 51%" row. Confirm your own position with a B-BBEE professional if your shareholders include South African citizens or permanent residents. Either way, the level does not stop a business trading or tendering; it determines the recognition customers can claim.
The Exempted Micro Enterprise route
The dtic publishes a general sworn affidavit for Exempted Micro Enterprises (EMEs) under Code Series 100 of the Amended Codes of Good Practice. The affidavit states that the enterprise's annual total revenue is R10,000,000 or less, based on audited or other financial statements and information for its latest financial year end. The owner, director or member signs it before a commissioner of oaths.
| Black ownership ticked on the affidavit | B-BBEE level | Procurement recognition |
|---|---|---|
| 100% black owned | Level One | 135% |
| At least 51% black owned | Level Two | 125% |
| Less than 51% black owned | Level Four | 100% |
A wholly Nigerian-owned EME ticks the last row. It has no scorecard to complete, no verification agency to pay and no audit; the affidavit is the evidence. It lasts 12 months from the commissioner's signature, so renew it each year after the financial year end.
What Level Four means for tenders and corporate buyers
A Level Four supplier is recognised at 100%: each rand a customer spends with it counts as one rand of B-BBEE procurement spend. A Level One supplier counts at 135%. When a buyer is choosing between two suppliers at similar prices, the higher recognition can tip the decision. In public tenders, preference points are allocated under the state's procurement rules, which set how B-BBEE status is weighed against price for each tender. Read the specific tender's scoring before deciding whether to bid.
- Register on the state's Central Supplier Database before bidding; see CSD registration for a foreign-owned company.
- Keep the affidavit current. An expired affidavit is often scored as non-compliant.
- Have a SARS tax compliance status PIN ready; see the SARS tax compliance PIN for a small company.
Worked example
Example only. Tunde and Amaka own all the shares in a Cape Town catering Pty Ltd. Revenue in the year to 28 February 2026 was R3.4 million, well under R10 million. In March 2026 Tunde signs the general EME affidavit, ticks "less than 51% black owned" and has it commissioned on 20 March 2026. It is valid until 19 March 2027. A corporate canteen client that spends R500,000 a year with the company counts that spend at 100%, or R500,000, for its own B-BBEE procurement score. If the same client used a Level One EME, R500,000 would count at 135%, or R675,000.
Above R10 million and fronting risk
A business with revenue above the EME threshold no longer uses the EME affidavit and is measured under the codes for larger enterprises, with a different set of affidavit or verification rules. Plan for that change a year ahead of crossing the line.
Some owners are approached with offers to add a nominal South African shareholder to lift the level. Arrangements in which ownership exists on paper but not in fact are known as fronting, which B-BBEE law prohibits. If you take on a South African partner, the shares, the money and the decision-making should be real; see a shareholders' agreement with a South African partner.
Steps for a new foreign-owned EME
- Confirm the latest financial year's revenue from the financial statements or management information.
- Download the current dtic EME affidavit for your sector.
- Complete it, tick the ownership row that matches the share register, and sign before a commissioner of oaths. The ownership you declare should match what the company gives CIPC, which requires a beneficial ownership declaration and a securities or beneficial interest register each year.
- Send a copy to customers who ask, and diarise renewal 11 months later.
Where Pryme fits
Buyers often check a supplier's paperwork before paying. A Pryme Business Account can issue verifiable receipts and statements with VerifyDoc.ai, so a customer can check a document is genuine and unaltered. The Sales agent prepares quotes and follow-ups for a person to approve. Outside Nigeria, Pryme's financial activities are carried out through regulated partners.
Questions people ask
Can a foreign-owned company get a B-BBEE certificate?
Yes. A small foreign-owned company with revenue of R10 million or less uses the EME sworn affidavit and, if less than 51% black-owned, records Level Four.
What B-BBEE level is a 100% foreign-owned small business?
Level Four with 100% procurement recognition, on the dtic's general EME affidavit, if revenue is R10 million or less.
How long is a B-BBEE affidavit valid?
Twelve months from the date the commissioner of oaths signs it, according to the dtic's affidavit form.
Do I need a verification agency for an EME?
No. An EME proves its status with the sworn affidavit; no verification audit is needed under the general EME route.
Sources
- the dtic: Sworn Affidavit, B-BBEE Exempted Micro Enterprise (General) · accessed Oct 2026
- CIPC: Beneficial Ownership · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.