JOHANNESBURG – Minister Tau, the Minister of Trade, Industry and Competition, has moved to calm public concern over proposed credit regulation changes, assuring South Africans that the new rules are not intended to punish university graduates with outstanding student debt. Instead, he emphasized, the changes are designed to strengthen access to credit for micro, small and medium enterprises (MSMEs) — a critical driver of economic growth in South Africa.
The reassurance comes after the Department of Trade, Industry and Competition published draft credit regulations on 13 August 2025 for public comment. These draft rules, issued under the National Credit Act, propose several changes to the way credit information is collected and used — including the inclusion of outstanding university fees in consumers’ credit reports.
The proposed regulations would allow credit bureaux access to a broader range of data held by state institutions, such as information related to fraud investigations and even criminal records. More controversially, the draft rules propose including debt owed to higher education institutions in consumer credit profiles — a change that some fear could reduce access to loans or financial services for graduates with unpaid student fees.
Minister Tau assures graduates that new credit regulations are not meant to penalize student debtors
But Minister Tau has stressed that this is not the intent of the changes. “The purpose of the proposed regulations is to enhance access to finance, particularly for micro, small and medium enterprises, and not to prejudice students or graduates who still owe fees to universities,” he said during a media briefing on Friday.
According to Minister Tau, South Africa’s economy continues to face challenges with financing inclusivity, particularly among MSMEs. Many small businesses are unable to access formal credit due to a lack of verifiable credit history or risk profile, pushing them toward informal lenders who charge exorbitant interest rates.
“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,” said Minister Tau. “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 draft regulations aim to provide credit providers with a more holistic view of a consumer or business’s financial behavior, making it easier to extend credit in a responsible manner.
Despite these intentions, the public response has been mixed. Concerns have emerged on social media and among student advocacy groups, with many questioning how the inclusion of university debt in credit profiles might affect access to employment, housing, and further education opportunities — especially for financially vulnerable graduates.
In response, Minister Tau has emphasized that these proposals are still in the consultation phase and that his department is committed to a transparent and inclusive public participation process.
“I understand the concerns raised by the public and stakeholders,” said Tau. “We are ensuring that the process allows for meaningful engagement and feedback. The intention is not to punish or exclude individuals but to enable a more robust and fair credit environment.”
Stakeholders have 30 days from the date of publication to submit comments on the proposed regulations. Tau has encouraged affected parties — especially student bodies, universities, financial institutions, and MSME advocacy groups — to take part in the process.
South Africa’s formal credit system has long been criticized for being exclusive and inaccessible to many citizens, particularly those from disadvantaged backgrounds. By updating the way credit data is collected and used, the government hopes to level the playing field for individuals and businesses alike.
While Minister Tau acknowledges that the proposals may need revision based on public input, he remains firm in his belief that the regulations are a step toward a more transparent and inclusive credit economy.
“There is no economic transformation without financial inclusion,” said Minister Tau. “These reforms aim to break down the barriers that keep small businesses from growing and that keep individuals trapped outside the formal financial system.”
As the 30-day consultation period continues, stakeholders across the financial, educational, and MSME sectors are expected to weigh in. The department will review all submissions before finalizing the regulations.
For now, Minister Tau has pledged to keep the lines of communication open and to ensure that the final version of the regulations reflects both the technical needs of the credit sector and the social realities of South African consumers.
Source- EWN
