Trade and Industry Minister Parks Tau pulled the National Credit Act amendments after his department logged more than 20,000 submissions, most opposing the proposals. The draft had been gazetted on 13 August for public comment. The outcry centred on Regulation 18(7), which many read as enabling “blacklisting” of students. But existing rules since 2006 already let credit bureaus receive information from educational institutions; the draft mainly clarified that “consumer” also includes a juristic person.
Business Backlash
The Banking Association SA said the Minister acted on “misinformed political pressure” and withdrew the National Credit Act amendments before the comment window closed. It argues the pullback undermines due process and stalls fixes to affordability assessments for small firms. Business Unity SA added that the move delays changes designed to ease credit for SMEs.
What the Amendments Sought to Change
The draft tweaked Regulations 18, 19 and 23A. Key elements broadened “consumer” to include juristic persons, listed information sources (including educational institutions) and adjusted affordability checks—especially those relevant to small-business revenue flows. Supporters said these National Credit Act amendments would help credit providers tailor assessments for micro and small enterprises.
Stakes for SMEs and Students
BASA says SMEs employ about 60% of the workforce and contribute around 40% of GDP, yet face a funding gap of roughly R350 billion—pressure the National Credit Act amendments aimed to relieve. Confusion about student “blacklisting” clouded that goal; even so, government now promises a new process to better protect students while pursuing MSME finance access.
South Africans need clarity and consultation. A transparent relaunch—explaining what is already in law and what will change—could protect young consumers and unlock finance for small businesses at the same time.
