Minister of Trade, Industry and Competition, Parks Tau has withdrawn draft regulations that listed educational institutions as originators of credit information under the National Credit Act.
The regulations, published in the Government Gazette in August 2025, triggered public opposition, pushing the minister to reconsider the proposal.
According to a statement that was issued by his department on Thursday, the decision follows an unprecedented response from the public, with over 20,000 submissions received by the Department of Trade, Industry and Competition before the public comment period closed on Friday.
Kaamil Alli, ministerial spokesperson, said the vast majority of the responses were opposed to the proposed regulations.
Viable democracy
Alli further said that the overwhelming public engagement highlights the strength of South Africa’s democratic process.
“This process has once more demonstrated the robust nature of South Africa’s democracy where the public is able to engage with government in an open and transparent manner,” said Alli.
The withdrawn regulations aimed to amend the National Credit Act but faced criticism for potentially placing undue financial burdens on students and educational institutions. In response to the backlash, Minister Tau has committed to a revised approach that prioritises student protection while addressing the credit funding gap for Micro, Small, and Medium Enterprises (MSMEs).
Alli emphasised the minister’s dedication: “Minister Tau has committed to undertaking a process which will consider the changes that are required to enhance the protection of students, while continuing with efforts aimed at improving access to finance for MSMEs in order to plug the credit funding gap that currently exists.”
To address concerns and ensure a transparent way forward, Minister Tau has pledged to engage with relevant stakeholders.
“Minister Tau has also committed to engaging relevant stakeholders in order to further clarify this process and allay any fears with respect to the outcomes of this process,” Alli added.
