Minister of Trade, Industry and Competition, Parks Tau, has moved to assure the public that the recently published Draft National Credit Regulations are not targeted at prejudicing any particular group.
This after concern was raised that the draft regulations may cause harm to persons who have 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 [MSME’s].
“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. These proposed regulations are provided for in the National Credit Act,” the Department of Trade, Industry and Competition (dtic).
Assisting MSMEs
The department explained that government was committed to “improving coordination with MSMEs to access the finance ecosystem” in order to address the “persistent challenges and barriers in the sector”.
“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.
“Regulatory reforms are part of broader efforts to enhance access to finance for MSMEs and close the long-standing credit gap they face. 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,” the department said.
The department insisted that improving MSME financing was critical for South Africa’s economic growth.
“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.
“The proposed regulatory amendments aim to improve visibility of MSMEs to access finance from formal sector providers by establishing opportunities to generate credit and risk histories as part of a more holistic programme to support MSMEs and township economies more generally,” the department said.
Public comments on the draft regulations are expected to close on 12 September 2025.
“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.
“To this end, the Minister notes the comments that have been made in the public domain as they relate to the draft regulations.
“The Minister remains committed to ensuring that these regulations do not unfairly impact on individuals as an unintended consequence. The Minister will engage stakeholders in order to clarify this process and allay any fears that this process may prejudice the most vulnerable in our society,” the department said. – SAnews.gov.za
