Level 1 is the highest B-BBEE contributor level in South Africa. It generally means a business scored 100 points or more on the scorecard, and it lets customers count 135% of what they spend with that supplier toward their own B-BBEE procurement score. For companies that report on supply-chain transformation, choosing a Level 1 logistics partner can lift their own rating. It should not be the only selection criterion, because a certificate says nothing about reliability, safety or price.

What does B-BBEE actually measure?

Broad-Based Black Economic Empowerment (B-BBEE) is South Africa’s framework for measuring how businesses contribute to economic transformation. A verified business is scored on elements such as ownership, management control, skills development, enterprise and supplier development, and socio-economic development. The total points determine a contributor level from 1 (best) to 8, with a non-compliant status below the lowest threshold.

The level is written on a B-BBEE certificate issued by an accredited verification agency. Small businesses follow simpler routes. Exempted micro enterprises with turnover under R10 million can use a sworn affidavit and receive Level 4 automatically, or Level 1 if they are 100% black owned. Qualifying small enterprises and large enterprises are measured against fuller scorecards.

What does Level 1 mean in numbers?

The level converts into a procurement recognition percentage. That figure is what a customer can claim when they buy from you.

Level	Typical points	Procurement recognition
Level 1	100 or more	135%
Level 2	95 to 99	125%
Level 3	90 to 94	110%
Level 4	80 to 89	100%
Level 5	75 to 79	80%
Non-compliant	Below 40	0%

Point bands differ between enterprise categories and sector codes, so treat the table as a guide. The recognition percentages, however, are consistent across the main frameworks.

An example makes it concrete. If a manufacturer spends R1 million with a Level 1 carrier, it can record R1.35 million of recognised procurement. With a Level 4 carrier the recognised figure is R1 million. The spend is identical, but the first supplier does more for the buyer’s scorecard.

Why does it matter for logistics?

Transport and freight are often among a company’s largest supplier categories. That means a shift in carrier choice can move the preferential procurement score noticeably.

• Corporate supply chains. Mines, retailers, manufacturers and construction groups report on their own B-BBEE performance and ask suppliers for certificates.
• Tenders. Many public and private tenders assign points for B-BBEE status. Under recent procurement rules, preference points are no longer automatic for every tender, so read the specific bid conditions.
• Contract compliance. Some contracts require a minimum supplier level or a stated percentage of black-owned subcontracting.

If your customers do not run procurement scorecards, the level has less commercial pull. It is a tool for organisations that report on transformation, not a universal quality mark.

Is Level 1 the same as good service?

No. A B-BBEE level measures transformation. It does not measure whether trucks arrive on time or cargo arrives undamaged. A sound decision looks at both. Beyond the certificate, ask about:

• Operating licences and cross-border permits where relevant.
• Goods-in-transit and public liability insurance, including limits.
• Driver licensing and training. Our guide to Code 14 licence requirements explains what heavy-vehicle drivers must hold.
• Vehicle tracking, maintenance records and safety systems.
• Client references and a record of on-time delivery.
• Transparent pricing. If you are benchmarking, our breakdown of truck hire costs per day in South Africa shows what a fair quote should cover.

How can you verify a supplier’s B-BBEE certificate?

Certificates are easy to misread, so check a few details.

1. Confirm the issuer. Verified entities should have a certificate from a SANAS-accredited verification agency. Smaller entities may present a sworn affidavit.
2. Check the legal entity. The name and registration number must match the company you will contract with, not a related business.
3. Check the date. Certificates are normally valid for 12 months. An expired one can mean zero recognition for your scorecard.
4. Check the scope. Make sure the certificate covers the sector or scorecard you are relying on. Transport businesses may be measured under a sub-sector code.
5. Ask for the underlying details. Ownership percentages and black-ownership status matter if your own targets include black-owned supplier spend.

Suppliers that publish their documentation openly make this check easier. As one example, a logistics business may host its B-BBEE certificate and related documents on its site so that customers can verify the level without chasing paperwork.

What are the pitfalls to avoid?

• Fronting. Fronting is illegal. It means misrepresenting ownership or control to gain a better level. Buyers should look at genuine involvement, not only the certificate.
• Chasing the level alone. A slightly lower level from a far more reliable carrier can be the better commercial choice.
• Ignoring the direction of travel. Codes and thresholds are reviewed. Draft amendments discussed in 2026 propose tighter procurement targets, so ask suppliers how they plan to keep their level.
• Assuming all spend counts the same. Some scorecards give extra weight to spend with black-owned small businesses.

Frequently asked questions

Is Level 1 the best B-BBEE level?

Yes. Level 1 is the highest contributor level and carries 135% procurement recognition.

What score do you need for Level 1?

Generally 100 points or more on the applicable scorecard, though the exact structure varies by enterprise size and sector code.

Is a Level 1 logistics company more expensive?

Not necessarily. Pricing is driven by fuel, distance, equipment, insurance and demand. Compare quotes on their merits.

Do all customers need a B-BBEE certificate from their carrier?

No. It matters mainly to businesses that measure their own B-BBEE procurement or bid on tenders that award points for it.

How often should I ask for a new certificate?

At least annually, and whenever the old one expires.

Last reviewed: 30 September 2026. B-BBEE codes, thresholds and tender rules can change. Confirm current requirements with the Department of Trade, Industry and Competition or a qualified B-BBEE consultant. This article is general information, not professional advice.

Sources and further reading: Broad-Based Black Economic Empowerment Codes of Good Practice, B-BBEE Commission guidance, SERR Synergy and Pioneer Compliance Consulting transport-sector overviews, RAM Logistics B-BBEE explainer.