B-BBEE Skills Development Training: A Practical Guide

TL;DR

• B-BBEE skills development training earns up to 25 scorecard points while genuinely upskilling your people — it is the one element that builds real capability.
• You spend a target of 6% of payroll on training black employees, then claim points for the spend, learnerships, and absorption of learners.
• Done well, it lifts your B-BBEE level, unlocks bigger contracts, and turns a compliance cost into a growth engine.

What’s in this guide

• What is B-BBEE skills development training?
• Why does skills development carry so much weight?
• How do you earn skills development points?
• How the Skills Development Levy and SETA grants fit in
• What can you actually spend the money on?
• Common mistakes that waste your spend
• Getting started: a practical roadmap
• Key takeaways
• Frequently asked questions

A friend of mine ran a small logistics firm in Durban. He treated his B-BBEE scorecard the way most of us treat a dental appointment — necessary, uncomfortable, put off until the pain arrives. Then a tender he had chased for two years slipped away because his level was one notch too low. The winning bid? A rival who had simply invested in training his people.

B-BBEE skills development training is not a box to tick. It is the single element on the scorecard that leaves your business measurably stronger long after the auditor has gone home. Get it right and you earn points, yes — but you also build a workforce that can do more, sell more, and stay longer.

In this guide I will walk you through what it is, how the points work, what you can legitimately spend on, and the mistakes I see South African SMBs make again and again. Let’s turn a grudge purchase into an advantage.

What is B-BBEE skills development training?

B-BBEE skills development training is the money and effort a company invests in educating and upskilling black employees, measured as a formal element of the Broad-Based Black Economic Empowerment scorecard. It rewards businesses for developing people rather than simply hiring them.

The framework sits inside the Amended Codes of Good Practice, overseen by the Department of Trade, Industry and Competition. Under the generic scorecard, skills development is worth up to 25 points — a hefty slice of the 109 available. That weighting is deliberate. Government wants companies to build human capital, not just shuffle equity around.

The term “black people” here follows the legal definition — African, Coloured, and Indian South Africans who are citizens by birth, descent, or naturalisation before 1994. Training spend on these employees, particularly women and people with disabilities, carries the most weight.

Why does skills development carry so much weight for b-bbee skills development training?

Skills development carries heavy weighting because it is the only scorecard element that creates lasting economic value — a trained employee keeps their capability whether they stay with you or not.

Consider the alternative elements. Ownership shifts who holds the shares. Enterprise development moves money to suppliers. Those matter. But skills development changes what a person can actually do, and that ripples outward through their family, their community, and the wider economy.

There is a hard commercial reason too. South Africa’s youth unemployment sits above 45%, according to Statistics South Africa (2024), and the skills gap is one of the loudest complaints from employers. When you train, you are not just chasing points. You are solving the exact problem that keeps your business from scaling.

I have watched a small marketing agency in Cape Town put three junior staff through accredited learnerships. Two years later, all three had been promoted, the agency had jumped a B-BBEE level, and the founder told me she would have done it for the productivity gain alone. The points were a bonus.

How do you earn skills development points?

You earn skills development points by spending a target of 6% of your leviable payroll on training black employees, then claiming additional points for learnerships and for absorbing learners into permanent jobs.

The generic scorecard breaks the 25 points down roughly as follows. Note that these figures apply to Large Enterprises and Qualifying Small Enterprises; Exempt Micro Enterprises with turnover under R10 million are automatically deemed compliant and do not need to claim.

There is a priority-element rule worth knowing. Skills development is one of three priority elements, and if you fail to achieve 40% of its target, your overall B-BBEE level drops by one — regardless of how well you score elsewhere. The the dtic Codes spell this out in detail, and it is the trap that catches the unprepared.

The payroll maths in plain terms

If your annual leviable payroll is R5 million, your 6% target is R300,000 of qualifying training spend per year. Miss the 40% threshold — under R120,000 in this example — and you risk the level penalty. So the arithmetic is not optional.

B-BBEE skills development and the Skills Development Levy: how the two fit together

Most South African employers are already funding skills development and have not noticed. If your annual payroll exceeds R500,000, you pay the Skills Development Levy — 1% of your total payroll, collected monthly by SARS through your EMP201 and routed to your SETA. That money leaves your account whether you plan a single hour of training or not.

Here is the part that catches SMBs out. The levy and the B-BBEE scorecard are two different systems that happen to point at the same activity:

• The SDL is a tax. One percent of leviable payroll, non-negotiable, paid to SARS. Paying it earns you no scorecard points whatsoever.
• The B-BBEE target is separate spend. The 6% covered above is money you invest in training on top of the levy. The levy itself does not count as qualifying skills development expenditure.
• The mandatory grant claws some of it back. Submit a Workplace Skills Plan and Annual Training Report to your SETA by 30 April each year and you can recover 20% of the levies you paid. Miss the deadline and the money is simply gone.
• Discretionary grants fund the rest. SETAs redistribute the balance through discretionary grants for learnerships, internships and bursaries — the very programmes that score highest on your scorecard. You have to apply. Nobody posts you a cheque.
• Sector codes may override the generic scorecard. Construction, tourism, ICT, agriculture, property, transport and the marketing and communication sector each have their own gazetted codes with their own targets. Check yours before budgeting against the generic figures.

The practical consequence is that one Workplace Skills Plan does three jobs at once: it recovers a fifth of your levy, it opens the door to discretionary grant funding, and it becomes the evidence your verification agency asks for. One document, three returns — which is precisely why the businesses that treat it as an annual box-ticking chore leave the most money on the table. What that spend may legitimately cover is where the rules get specific.

What can you actually spend the money on?

Qualifying skills spend covers accredited and non-accredited training, learnerships, bursaries, and certain costs like accommodation, catering, and course materials directly tied to the learning.

The categories run from A to G under the Learning Programme Matrix. Here is what counts, in practice:

• Accredited courses delivered by a SETA-recognised provider — the highest-value spend.
• Learnerships and apprenticeships that blend classroom and workplace learning.
• Internships and work-integrated learning for students and graduates.
• Bursaries and study support for black employees.
• Non-accredited training such as short skills courses, workshops, and informal mentoring — capped at 15% of total spend.
• Legitimate expenses: catering, travel, accommodation, and course materials linked to the training.

What does not count is just as important. Wellness days, team-building without a learning outcome, and mandatory statutory training such as basic health and safety generally do not qualify. Keep your evidence tidy — signed attendance registers, invoices, and a Workplace Skills Plan submitted to your SETA.

Communication, sales, and influence training sits comfortably in the qualifying categories when it is structured and outcomes-based. That is precisely the kind of upskilling I work on with teams, and you can read more about our approach on our services page.

Common mistakes that waste your spend

The most costly mistake is spending the money but failing to document it properly, so the training happens and the points never arrive. Compliance lives in the paperwork.

I have seen good businesses lose points they had earned outright. Here are the errors that recur:

1. No Workplace Skills Plan. Without a WSP and Annual Training Report lodged with your SETA, much of your spend simply cannot be claimed.
2. Leaving it to March. Cramming a year’s training into the final quarter before your verification date almost always underdelivers. Spread it.
3. Ignoring the priority threshold. Chasing headline points while missing the 40% sub-minimum, then watching the level drop anyway.
4. Fronting or fake training. Fictitious learners and rubber-stamped courses are fraud. Verification agencies are trained to spot them, and the reputational damage outlasts any tender.
5. Choosing cheap over accredited. Unaccredited providers may look like a bargain, but accredited spend scores more and delivers recognised qualifications.

Firms like BEE.co.za and registered verification agencies publish guidance on evidence requirements — read it before you plan the year, not after.

Getting started: a practical roadmap

Start by calculating your 6% payroll target, then build a Workplace Skills Plan that maps real training needs to that budget across the full financial year.

Here is the sequence I recommend to the SMB owners I advise:

1. Register with your SETA and appoint a Skills Development Facilitator — often an existing HR person with light training.
2. Audit your team. Where are the skills gaps that hurt the business most? Sales? Communication? Technical certifications?
3. Set your budget. Confirm your leviable payroll and your 6% target, then split it across accredited courses, learnerships, and mentoring.
4. Choose accredited providers. Prioritise programmes that give employees a recognised qualification and give you the higher-scoring spend.
5. Track relentlessly. Keep invoices, attendance registers, and completion certificates in one folder from day one.
6. Submit and verify. Lodge your WSP and Annual Training Report, then present clean evidence at verification.

If you want the training itself to move the commercial needle — not just the scorecard — anchor it to a skill your business sells. Better communication and persuasion training pays for itself twice: once in points, once in revenue. That is the philosophy behind the work I do, and you can explore it further on our about page.

Key takeaways

1. B-BBEE skills development training is worth up to 25 scorecard points and builds lasting capability in your workforce.
2. The core target is 6% of leviable payroll spent on training black employees each year.
3. It is a priority element — miss 40% of the target and your B-BBEE level drops by one.
4. Accredited courses, learnerships, and absorption of learners score the most; document everything.
5. Tie the training to a skill your business actually sells, and it pays back in revenue as well as points.

Frequently asked questions

What is B-BBEE skills development training and who does it apply to?

B-BBEE skills development training is investment in upskilling black employees, measured on the B-BBEE scorecard for up to 25 points. It applies to Large Enterprises and Qualifying Small Enterprises. Exempt Micro Enterprises, with turnover under R10 million, are deemed compliant and need not claim points, though they may still train for business reasons.

How much must I spend on skills development?

The target is 6% of your leviable payroll spent annually on training black employees, with an extra 0.3% aimed at black employees with disabilities. On a R5 million payroll that is roughly R300,000. Falling below 40% of your target triggers a one-level drop in your B-BBEE rating, so the spend is effectively non-negotiable for compliant firms.

Does non-accredited training count towards my points?

Yes, but with limits. Non-accredited training — short courses, workshops, and structured informal learning — qualifies up to a cap of 15% of your total skills spend. Accredited programmes delivered by SETA-recognised providers carry more weight and give employees a recognised qualification, so most of your budget should sit there.

What happens if I miss the skills development target?

Skills development is a priority element. If you achieve less than 40% of the sub-minimum target, your overall B-BBEE level is discounted by one level, even if you score well on ownership and other elements. This penalty can cost you tenders, so plan the year early and track spend monthly rather than scrambling near verification.

Can communication or sales training qualify for B-BBEE points?

Yes. Structured, outcomes-based communication, sales, and influence training qualifies under the Learning Programme Matrix, especially when delivered through accredited providers or as part of a learnership. It is one of the smartest categories to invest in because the skills feed directly into revenue while also earning scorecard points.

Ready to turn compliance spend into commercial firepower? If you want communication and influence training that lifts both your B-BBEE score and your bottom line, get in touch with our team for a no-obligation conversation. If it does not fit your business, you will have lost nothing but twenty minutes — and likely gained a clearer plan.

Written by David Watts — communication strategist and founder of Watts Digital, helping South African businesses turn words into influence and influence into growth.