By Lehlohonolo Lehana.
Minister of Trade, Industry and Competition Parks Tau has withdrawn draft amendments to the National Credit Act of 2005 that would have allowed credit bureaus to obtain credit information from educational institutions.
The ramifications of this amendment have prompted vehement criticism from various quarters.
Tau emphasised that the proposed regulations were not aimed at prejudicing students but designed to enhance financial access for micro, small, and medium enterprises, as well as historically marginalised communities.
As part of an ongoing process of ensuring that the credit environment is robust, draft regulations were published on 13 August 2025 for a period of 30 days.
“Improving MSME financing is a key driver of economic growth, with a particular focus on ensuring transformed, inclusive and affordable financial services for women, underserved communities, and vulnerable groups. Bridging this financing gap will not only strengthen MSME resilience and expansion but also contribute significantly to the overall growth of the national economy.”
Tau said he was aware of the public concerns and has vowed to ensure a fair public participation process.
In a brief statement on Thursday evening, Tau said his decision was informed by the overwhelming response, comprising of 20000 submissions before closing date of 12 September. The majority of responses was opposed to the proposed regulations. This process has demonstrated robust democracy, where public is able to engage with government in an open and transparent process.”
Tau committed to undertaking a process which will consider changes that are required to enhance protection of students while continuing with efforts aimed at improving access to finance for SMMEs in order to plug the credit funding gap that currently exist.”
The minister committed to engaging relevant stakeholders in order to further clarify the process and allay fears with respect to the outcomes of this process.
Consumer credit in SA includes a wide range of products, such as home loans, overdraft and personal loans, credit cards, retail credit, leases, instalment sales and microloans.