For certain Contracts and Tenders in South Africa, you need a Company that has 10% Black Ownership. In most cases, you need a BEE Level 1 or 2 Company structured correctly.
One of the easiest ways to go about this is to setup a Trust according to your BEE needs.
According to the B-BBEE Act, a Trust can be created to facilitate the ownership by employees, communities, or similar groups.
The Trust can then be made the Shareholder of a Company, instead of individuals. This is called a BEE Trust.