Minister of Trade, Industry and Competition (DTIC), Parks Tau, has moved to calm fears over the recently published draft national credit regulations, stressing that the proposals are not intended to target South Africans struggling with student debt.
“Minister Parks Tau wishes to assure the country that the recently published regulations regarding changes to the credit environment are not intended to prejudice individuals who are indebted to institutions of higher learning. Rather, the focus is to ensure access to finance for micro, small, and medium enterprises (MSMEs),” the department said.
The draft regulations were published on 13 August for public comment over a 30-day period, as part of amendments to the National Credit Act.
DTIC
Focus on MSME access to finance
The department emphasised that the main goal of the reforms were to improve access to credit for MSMEs, which it described as a critical driver of inclusive economic growth.
“Lack of adequate MSMEs credit and risk history impedes their ability to access credit from formal sector providers, resulting in them falling prey to informal lenders that charge exorbitantly,” it said.
According to the DTIC, the draft rules are part of wider reforms aimed at addressing long-standing barriers that limit smaller businesses from accessing finance in the formal sector.
“Regulatory reforms are part of broader efforts to enhance access to finance for MSMEs and close the long-standing credit gap they face,” the department explained.
Addressing exclusion and debt burdens
The department also acknowledged the heavy debt burden carried by many young people, insisting that the government would not act to make their situation worse.
“We are all too aware that the majority of our people have faced systematic exclusion, and these regulations seek to undo this exclusion by unlocking access to finance.
“We are also acutely aware of the debt burden faced by many young people in the country and would not act to further prejudice those who need assistance,” it said.
Public participation and next steps
Public submissions on the draft regulations will close on 12 September 2025.
Tau has pledged that the department will consider all inputs before the regulations are finalised.
“The Minister is committed to a fair public participation process. This includes ensuring all inputs that are made during the public participation process are considered before finalising the regulations, and if necessary, extending the period of public participation,” the DTIC said.
It added that Tau would continue to engage stakeholders to clarify the purpose of the regulations and to “allay any fears that this process may prejudice the most vulnerable in our society.”
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